Products April 23, 2020

Investment Product and Service Launches

Wells Fargo launches Retirement Income Solution, and Morningstar to acquire Sustainalytics.

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Art by Jackson Epstein

Wells Fargo Launches Retirement Income Solution

Wells Fargo Asset Management has launched the Wells Fargo Retirement Income Solution. The company notes that with increasing life expectancy, many workers and retirees don’t know how long their retirement savings will need to last.

Based on patent-pending research, the Wells Fargo Retirement Income Solution is designed to enable participants to seamlessly transition from investing for retirement to drawing income in retirement. Participants can pair a target-date series with a qualified longevity annuity contract (QLAC).

“We believe our suite of retirement-oriented solutions has the potential to help millions of Americans live more fulfilling lives,” says Nate Miles, head of retirement at Wells Fargo Asset Management. “By providing an option for more consistent retirement income, we help retirees address their fear of running out of retirement savings.”

Wells Fargo provides 3(38) fiduciary services for the selection of the insurance carrier to provide the annuity. Wells Fargo will also work with recordkeepers to improve simplicity and portability.

Sean Fullerton, retirement investment strategist at Wells Fargo Asset Management, adds: “Defined contribution [DC] plans are becoming the primary source of retirement income for many individuals. As an industry, we need to focus not only on helping people save while working but also on helping them spend sustainably once they retire.”

Morningstar to Acquire Sustainalytics

Morningstar has reached an agreement to acquire Sustainalytics, a provider of environmental, social and governance (ESG) ratings and research. Morningstar currently has a 40% ownership stake in Sustainalytics, which it took out in 2017.

Morningstar is purchasing the remaining 60% stake for 55 million euros ($59 million) and additional cash payments in 2021 and 2022 based on a multiple of Sustainalytics’ 2020 and 2021 fiscal year revenues. Morningstar estimates the enterprise value of Sustainalytics to be 170 million euros. Morningstar expects to close on the transaction early in the third quarter of this year.

“Modern investors in public and private markets are demanding ESG data, research, ratings and solutions in order to make informed, meaningful investment decisions,” says Morningstar Chief Executive Officer Kunal Kapoor. “From climate change to supply-chain practices, the nature of the investment process is evolving and shining a spotlight on demand for stakeholder capitalism. This is the future of long-term investing.”

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Products April 23, 2020

Alight Solutions Introduces Employee Well-being Offering

Alight Well provides employees with access to personalized communications, individual and team contests and redeemable rewards.

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Alight Solutions has launched Alight Well, a digital capability that it says “enables a healthy mind, body, wallet and life for employees, while providing a better return on investment of employer-provided benefits.”

Alight partnered with Mobile Health, a cloud-based platform, to create Alight Well, which provides employees with access to personalized communications, individual and team contests and redeemable rewards. Based on an initial assessment, employees are offered educational and coaching resources that are relevant to their well-being goals.

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Alight Well then analyzes a continuous flow of well-being and benefits data to enhance employee journeys with new challenges, programs and action plans. With dashboard visualizations that display well-being progress, employees can easily see how their actions relate to total rewards outcomes such as retirement readiness and lower health care costs.

“Alight believes that improving health outcomes and maximizing benefits dollars starts with empowering people to take charge of their total well-being with on-demand support from their employers,” says Brannon Lacey, president of benefits solutions at Alight.

Alight Well is fully integrated with UPoint, Alight’s proprietary human resources (HR) and benefits portal, and it provides a holistic well-being program unique to each user. The platform is supported by mobile, tablet and web devices, as well as several wearable devices for individual, peer-to-peer and team challenges.

More information about Alight Well is available at alight.com/alight-well.

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