The new service is part of an agreement with Ibbotson Associates, a registered investment advisor and wholly owned subsidiary of Morningstar, Inc., to launch the new 403(b) product enhancement for the K-12 education market.
As part of the Portfolio Director Ibbotson Solutions service, Ibbotson will create and monitor a list of investment options derived from the offerings available in VALIC’s Portfolio Director variable annuity. The list will be reviewed and updated periodically to ensure that the funds continue to meet Ibbotson’s rigorous criteria. Ibbotson will monitor both quantitative factors, such as fund performance, as well as qualitative factors including changes in fund managers and investment philosophies, potential regulatory actions and other relevant investor information.
Portfolio Director Ibbotson Solutions is a continuation of VALIC’s previous collaboration with Ibbotson to bring independent advisory services to the 403(b) market. In 2003, AIG VALIC launched independent third-party investment advice and automated portfolio management services under the SunAmerica advisory opinion from the U.S. Department of Labor. Ibbotson Associates provides the investment advisory services for these Guided Portfolio Services (see AIG VALIC to Offer Advice, Third-Party Management), which today has more than $7 billion in assets under management, according to a press release.
AIG VALIC is the marketing name for the group of companies comprising VALIC Financial Advisors, Inc.; VALIC Retirement Services Company; and The Variable Annuity Life Insurance Company (VALIC); each of which is a subsidiary of American International Group, Inc.