LeafHouse, ARS bring managed accounts to retirement plans

Tech tie-up taps 401(k) target-date funds from State Street to create personalized lifetime income for workplace plan participants.

A wider swath of Americans could gain access to personalized lifetime income for their retirement thanks to a newly announced collaboration.

LeafHouse, iJoin, and ARS have unveiled a new managed account offering designed to deliver customized retirement savings and income solutions broadly.

The Automated Personalized Portfolio program includes the State Street GTC Retirement Income Builder Series target-date funds, which State Street Global Advisors launched almost a year ago for 401(k)s. The funds include lifetime income strategies from ARS and have Global Trust Co. as their fiduciary and trustee.

The APP is described as a technology-driven solution that combines a personalized saving and income strategy for participants, with LeafHouse acting as the fund allocation technology provider and the participant-level fiduciary.

The new product draws on the collective strengths of a consortium of industry leaders to offer retirement planning that emphasizes personalized savings, growth, and the assurance of lifetime income for plan participants.

Recent studies show demand from US workers for retirement planning solutions tailored to their individual needs.

In the 2023 survey, Franklin Templeton found approximately 78 percent of workers are interested in 401(k) options customized to their unique financial situations, while 85 percent believe lifetime income options should be included in their retirement plans.

“In a market where 85 percent of your customer base is expressing a need for something, it’s imperative to address that need,” Todd Kading, CEO of LeafHouse, said in a statement.

The APP program is designed to meet these needs, integrating LeafHouse’s FlexFiduciary and reallocateIT portfolio management technologies with iJoin’s participant experience to create uniquely personalized investment portfolios.

Dimensional Fund Advisors will also have a hand in the program, providing evidence-based investment solutions to complement State Street’s target-date fund solution.

“This consortium of industry-leading product innovators was established to help drive better participant outcomes through participant-centric innovation,” said Dave Paulsen of ARS. “We are committed to offering participants personalized saving vehicles that also seek to deliver lifetime income, aiming to provide the tools they are asking for to help achieve their financial goals in retirement.”