Ascensus Announces Spring 2024 Launch of Ascensus | American Funds PEP Solution
New Pooled Employer Plan Solution offers unique benefits
Dresher, PA—Ascensus, whose technology and expertise help millions save for a better future, said it will begin offering the Ascensus | American Funds Pooled Employer Plan (PEP) solution on its independent, open-architecture recordkeeping platform beginning in spring 2024.
“We’re delighted to partner with Capital Group, home of American Funds, to offer the significant benefits and flexibility our PEP program provides,” said Jason Crane, head of Distribution for Ascensus Retirement. “Capital Group shares our goal to help more savers save more, and our commitment to offering a full product continuum to meet customer needs. American Funds’ investment experience and Ascensus’ award-winning service are a powerful combination—and all focused on driving better outcomes for partners, clients, and savers.”
Crane said Ascensus will be the first provider to offer American Funds Target Date Plus. This new investment solution is focused on creating a unique portfolio that matches a participant’s financial needs more closely than a traditional target date fund allocation determined only by age.
“After watching the PEP market evolve over the last several years and listening closely to advisors who desired a pooled plan offering, we are pleased to announce this partnership with Ascensus,” said Mike Bockstie, Senior Vice President, Institutional Retirement Sales, Capital Group. “The Ascensus-American Funds PEP Solution is the first in the industry to include Target Date Plus1 as a QDIA option for participants, which provides personalized allocation advice tailored to a retirement saver’s specific needs and objectives.”
The Ascensus | American Funds PEP offers the traditional administrative and investment fiduciary benefits of a pooled employer plan—with Wilshire taking on the role as 3(38) investment fiduciary—plus several key differentiators, including:
- American Funds Target Date Plus, powered by Morningstar Investment Management LLC, with personalized allocation advice tailored to a retirement saver’s specific needs and objectives
- A tiered investment menu grouping investment funds into logical categories (from target-date funds to customized portfolios) to build understanding and simplify participants’ decision making – inclusive of a number of leading fund managers
- A fully bundled solution supported by Ascensus’ world class-rated client service team
- Greater capabilities targeting better outcomes for participants through tools like My Forecast, where savers will be able to see a complete retirement readiness view
- Plan design flexibility that works for each adopting employer, and
- Financial Finesse financial wellness coaching benefits2
Ascensus has reached $1 billion in PEP assets under administration, representing more than 33,000 savers. The company has more than $742 billion in assets under administration overall.
1Capital Group and the Workplace Solutions group within Morningstar Investment Management LLC, a subsidiary of Morningstar, Inc., announced a new target date service, Target Date Plus, with personalized allocation advice tailored to a retirement saver’s specific needs and objectives, in 2022. The service, which employers can use as a qualified default investment alternative, blends the American Funds Target Date Retirement Series® with Morningstar Investment Management’s experience delivering online investment advice through its user interfaces and vast network of integrated recordkeepers.
2Earlier this year, Financial Finesse, the leading independent provider of financial wellness coaching benefits, announced the expansion of a successful initial program with Capital Group. The program brings Financial Finesse financial coaching to select Capital Group DCIO clients in the mid-sized plan sponsor market and PlanPremier® full-service recordkeeping clients in the large plan sponsor market.
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About Wilshire
Wilshire is a global provider of market-leading indexes, advanced analytics, and multi-asset investment solutions. A trusted partner to a diverse range of more than 500 leading institutional investors and financial intermediaries, our clients rely on us to improve investment outcomes for a better future. Wilshire advises on over $1.3 trillion in assets and manages $86 billion in assets and is headquartered in the United States with offices worldwide.
As of June 30, 2023, Wilshire oversees defined contribution solutions representing $205 billion in assets, including a comprehensive suite of institutional-caliber ERISA 3(21) and ERISA 3(38) plan fiduciary services, along with participant advice and managed account solutions. Today more than 73,000 plans utilize Wilshire’s plan fiduciary services, and more than 280,000 plan participants utilize our managed account solutions. Wilshire is dedicated to expanding retirement plan coverage by empowering employers, their advisors and service providers with independent investment solutions focused on driving better outcomes.
More information on Wilshire can be found at www.wilshire.com
About Ascensus
Ascensus is a market-leading enabler of tax-advantaged savings—providing technology, services, and expertise that helps millions of people save for a better future.
The company is a premier savings program service provider, third-party administrator, and government savings facilitator. Its platforms, industry knowledge, and data-based insights enhance the growth and success of its partners, their clients, and savers through co-branded, private-labeled, and governmental partnerships.
Ascensus offers comprehensive qualified and nonqualified retirement plan solutions, third-party retirement plan administration, 529 education and ABLE savings program administration, corporate- and bank-owned life insurance solutions, and fiduciary and total rewards services.
The company’s brands include Ascensus; Newport, an Ascensus company; and FuturePlan by Ascensus. Ascensus has more than $742 billion in assets under administration and employs more than 5,600 associates as of June 30, 2023.
For more information, visit ascensus.com and newportgroup.com.
About Capital Group
Capital Group, home of American Funds, has been singularly focused on delivering superior results for long-term investors using high-conviction portfolios, rigorous research, and individual accountability since 1931.
As of June 30, 2023, Capital Group manages more than $2.3 trillion in equity and fixed-income assets for millions of individuals and institutional investors around the world. Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed-income investment professionals provide fixed-income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.
For more information, visit capitalgroup.com.
