LeafHouse, Capital Group Team Up for Customized TDF Solution
LeafHouse rolled out a personalized retirement investing experience in a new partnership with Capital Group, launching Target Date Plus powered by LeafHouse, a data-driven personalization service designed to improve retirement outcomes for working Americans.
“Target Date Plus is designed to tailor portfolios to participants’ unique needs and goals using actual data,” said Todd Kading, President and CEO of LeafHouse. “People are unique. Their portfolios should be, too. We have built this solution to deliver personalized, fiduciary-managed portfolios at a cost that is appropriate and accessible.”
The new offering combines Capital Group’s extensive investment experience, through the American Funds Target Date Retirement Series and other core investment strategies, with LeafHouse’s fiduciary technology and oversight to create portfolios customized for each participant. Delivered through a seamless digital platform powered by iJoin, the solution is designed to make personalization both practical and cost-effective.
Target Date Plus, which employers can use as a qualified default investment alternative (QDIA), goes beyond traditional age-based investing by using up to ten key participant data points—such as income, savings rate, age, and retirement timeline—that require no direct participant engagement. For participants who choose to engage further, the service can incorporate an additional six data points, including outside assets and other income.
“Our goal is to deliver strong, long-term results for investors,” said Mark Dence, Retirement National Accounts Director at Capital Group, one of the world’s largest and most experienced active investment managers. “By partnering with LeafHouse, we can offer scalable, personalized retirement solutions supported by proven investment strategies, assisting more individuals in both accumulation and decumulation with their innovative withdrawal advice.”
“By partnering with LeafHouse, we can offer scalable, personalized retirement solutions supported by proven investment strategies.”
Capital Group’s Mark Dence
LeafHouse builds portfolios that dynamically adjust over time, integrating both the target date glide path of American Funds with participant behavior insights. In addition to personalized investment portfolios, the solution offers wellness and education tools, with withdrawal advice expected to launch later this year.
iJoin’s ACT technology aggregates plan and participant data, enabling recordkeepers and advisors to measure outcomes, send targeted communications, and enhance participant engagement like increasing contribution rates. The result is a personalized, affordable managed account with exclusive features accessible to everyone.
A July 9 press release said the new initiative underscores a broader trend in the retirement market: personalization without complication or compromise. Target Date Plus offers customization and expert oversight, using LeafHouse’s proprietary fiduciary platform and intelligent portfolio construction engine.
Austin, Texas-based LeafHouse is a national discretionary investment manager and fiduciary technology provider serving retirement plan advisors, recordkeepers, and institutions. The firm acts in both 3(21) and 3(38) capacities and developed a proprietary platform that delivers personalized portfolios, real-time oversight, and scalable solutions aligned to the fiduciary standard.
SEE ALSO:
• Capital Group Enhances SMB Retirement Plan Service Capabilities
• LeafHouse Ramps Up Personalization with New BlackRock, iJoin Collaboration
• Capital Group Expands Engagement Tool to Small Businesses
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
