Prudential Retirement has added a new menu of Russell Investments’ institutional target-date portfolios to its investment offerings to DC plan sponsors.

The Russell LifePoints Institutional Target Date Funds, which are available immediately in the Prudential IncomeFlex Target program, are expected to help provide access to retirement investment options that stabilize portfolios over the long term.

Mark Foley, vice president of institutional income at Prudential Retirement, says that the new working arrangements allow for the Prudential to leverage the “great name” of Russell Investments and use its retirement industry experience.

“Russell Investments is a major provider, of not just target-date funds and asset allocation solutions, but really full-blown investment consulting across the retirement plan space,” Foley explains.

He adds that IncomeFlex can help fill the void where target-date options fall short by offering guaranteed lifetime income options, downside protection and more options for growth. Along with Prudential Day One IncomeFlex Target Funds, IncomeFlex also includes target-date options from American Century, Fidelity, JP Morgan, T. Rowe Price and Vanguard.

“Regular target-date funds do a great job and can do a great job with getting you up to retirement,” Foley says. “But as an individual, you really can’t diversify your exposure to volatility when you’re going to retire, and you can’t diversify your longevity exposure. You only have one life to work with.”

Hinting at the reasoning behind the collaboration, Jeff Eng, director of retirement income solutions at Russell Investments, says that small- to mid-sized DC plans are showing interest in guaranteed income solutions.

“This represents a significant opportunity to bring together the benefits of open architecture target-date funds with a guaranteed income solution for the defined contribution plan market,” Eng says.

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