Product & Service Launches – 10/31/24

Principal launches TDFs with ARS in-plan annuity option; Capital Group, KKR debut public-private fixed-income funds; North American and AMS introduce annuity series; and more.

Principal Announces TDF Suite With ARS’s Lifetime Income Builder

Principal Financial Group Inc. is launching a target-date-fund suite embedded with Advantage Retirement Solutions LLC’s in-plan annuity option for participants to set up guaranteed distributions in retirement, according to an announcement.

ARS’ proprietary Lifetime Income Builder functions like an investment for plan participants while being backed by a group fixed-indexed annuity with a guaranteed lifetime withdrawal benefit.

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Starting next year, Principal will offer target-date series that include both active and passive investment options for plan sponsors using its recordkeeping services.

The recordkeeper and asset manager will also encourage plan sponsors to use the TDF as the qualified default investment alternative or the default investment option to “help remove difficult participant-level decisions that often lead to confusion or inertia,” according to the announcement.

Capital Group, KKR File for 2 Public-Private Fixed-Income Funds


Capital Group Companies Inc. and KKR & Co. Inc. registered with the Securities and Exchange Commission two public-private fixed-income funds, Capital Group KKR Core Plus+ and Capital Group KKR Multi-Sector+. The firms expect the funds to launch in the first half of 2025, pending approval.

The filings follow the firms’ announcement that they would be creating a category of hybrid public-private investment funds with the goal of giving investors access to private markets in their portfolios. The funds will be offered via financial professionals in the U.S. wealth market, the firms noted.

“These strategies aim to solve the access gap that individual investors currently face when it comes to private investments, and we expect these two public-private strategies will be the first of many across asset classes and geographies,” Holly Framsted, head of global product strategy and development at Capital Group, said in a statement.

Capital Group is responsible for the overall fund strategies, with KKR leading on the private market offerings. The former manages more than $555 billion in public fixed-income assets, while KKR manages more than $100 billion in private credit.

North American and AMS Financial Services Group Announce Max Elite Annuities

Fixed-index-annuity provider North American Co. for Life and Health Insurance, a member company of Sammons Financial Group Inc., is partnering with AMS Financial Services Group on a new annuity product series.

The companies announced this week the Max Elite Accumulation FIA series and the Max Elite Guaranteed MYGA series, both of which will be wholesaled by AMS and sold through bank and broker/dealer channels. Each series will offer five-, seven- and 10-year surrender charge options.

“Right now, the U.S. annuities marketplace has broad client attraction as consumers see the value of guaranteed income,” Rob TeKolste, president of Sammons Independent Annuity Group, said in a statement. “We intend to lead the market by delivering a product that may help clients grow their nest egg.”

Candidly Unveils Onward, a Debt Optimization Solution for the Workplace

Candidly, an artificial intelligence-backed student debt and savings optimization platform, has launched a new consumer debt management program for retirement plan advisers, plan sponsors and recordkeepers to offer to participants.

Candidly’s Onward, which has been available as an application programming interface, will in 2025 have a full “front-end experience,” according to the firm. The new platform’s goal is to help consumers best allocate their money across debt, savings and investing to maximize interest-bearing deposits.

Onward can be used as a “plug-and-play” option in existing employer-sponsored benefits, including health care savings accounts, flexible savings accounts, brokerage accounts and retirement accounts.

“Lowering consumer cost of debt, and directing those dollars into first time deposits, savings, and retirement savings, transforms financial outcomes today and tomorrow,” Candidly CEO Laurel Taylor said in a statement.

Commonwealth Finds Barriers Hinder Student Investors

Despite strong interest in building wealth, undergraduates encounter obstacles to investing.

The results of a new survey from nonprofit Commonwealth highlighted significant challenges that college students, especially those from low- and moderate-income backgrounds, face in entering the world of investing.

According to the research, 80% of LMI students who are not yet investors express interest in the stock market, suggesting that the desire to grow wealth is widespread across both two- and four-year institutions. However, despite this interest, only a fraction of students is investing, with just 44% currently participating in the stock market.

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Furthermore, among those who are investing, nearly two-thirds have less than $1,000 in their portfolios, and more than one-third have less than $500, underscoring that even those who are investing are doing so on a limited scale, according to Commonwealth, a nonprofit focused on building financial security in the U.S.

The national survey of more than 1,000 students found that 71% of non-investing students acknowledge the potential of investing to build wealth, yet barriers prevent many from acting on this belief. Among students with dependents, 48% are likely to invest, compared with 38% of those without dependents. This suggests that the motivation to invest may increase with financial responsibility, even as a significant number of students struggle to navigate the steps from interest to active investing.

As students with low to moderate incomes navigate their financial futures, starting early with investing becomes increasingly important. Citing a recent study from Schwab, Paula Grieco, senior vice president says on average Gen Z adults began saving and investing more than a decade earlier than baby boomers.

“This means plan advisers have a real opportunity to support these young adults early on. One way to do this is to create a sense of belonging, a sense that ‘this is for me,’” she says.  

Grieco suggests advisers have their marketing campaigns and website reflect young investors through representative images, so they see others who look like them. Advisers can also provide social networking support, create nonjudgmental educational resources on investment strategies and explore how seed funding could play a supportive role.

“Ultimately, develop the inclusive product features that address this group’s needs,” says Grieco. “These types of resources can help students cultivate an investor mindset and become confident, informed investors, setting the stage for long-term success.”

Financial Fears and Knowledge Gaps

Fear of losing money emerged as a prominent obstacle for students, with 65% of interested non-investors citing this as a deterrent.

Financial aid recipients showed a heightened sensitivity to potential losses, with 65% indicating fear of loss as a primary barrier, compared with 49% of students who are not financial aid recipients. Limited financial literacy compounded this hesitation, with 62% of students pointing to a lack of knowledge as an additional challenge.

The survey also found that a lack of confidence holds many students back from investing, particularly women. While 50% of men in the study were actively investing, only 34% of women reported doing the same. Additionally, 64% of non-investing women cited a lack of confidence in their ability to invest, compared with 49% of non-investing men, highlighting a significant gender disparity in financial self-assurance.

The study’s findings called for targeted support programs and educational resources to equip students with the necessary tools to make informed and confident investment decisions. Addressing the emotional and informational barriers to investing, especially for underrepresented groups and those from lower-income backgrounds, could be key to helping more students become active participants in the financial markets.

The participant pool for Commonwealth’s The New College Investor: Opportunities and Challenges for Building Wealth included 1,012 respondents, made up of 52% students from four-year colleges, 33% students from two-year colleges, 10% recent graduates and 5% students on a leave of absence.

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