AllianceBernstein L.P. announced that it has made enhancements to its Multi-Manager Retirement Trusts (MMRT) target-date series.
The AB MMRT is AB’s collective investment trust-packaged target-date solution. The enhancements aim to drive greater value and performance results for retirement savers, AB states.
“As an industry leader with 20 years of experience in glide path design and approximately $100B in assets under management in target-date solutions, AB specializes in designing innovative investment strategies that help retirement savers be better prepared for the future,” said AB’s Head of Defined Contribution Jennifer DeLong in a statement. “The current market environment continues to challenge participants seeking sources of return to build their savings, and we believe these enhancements can help improve their return potential.”
Utilizing AB’s proprietary glide path design, MMRT leverages manager research to efficiently blend both active and passive underlying investment strategies, within an open-architecture target-date solution.
Enhancements include:
- Refined Manager Selection Process: By leveraging our internal tools and resources, paired with differentiated external manager research, AB will take full ownership of the manager selection process.
- Fee Reduction for Investors: The total expense ratio of the MMRT suite, Class T (available to plans of all sizes) was reduced from 45 basis points to 29 basis points.
- Optimized Investment Design: The updated glide path will feature a mix of active and passive strategies (moving from 60/40 to 50/50). Additionally, the target allocation for the AB-managed share of the component funds will increase modestly.
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