OneDigital Unveils Innovative Private Investment Options in Enhanced 401(k) Portfolios

OneDigital's Innovative Step Towards Enhanced Retirement Security

OneDigital, a prominent player in insurance brokerage and financial services, has recently made headlines by adding private investment opportunities to its Personalized Portfolio program designed for 401(k) plan sponsors. This strategic move marks a significant shift in the landscape of retirement planning, as it aims to deliver institutional-quality investment strategies tailored for the average American worker.

In a world where financial literacy is critical, the introduction of these private investments seeks to enhance the retirement outcomes for participants in defined contribution plans. As the economy continues to evolve, corporate-sponsored retirement plans must adapt to better serve their participants, and OneDigital is leading this charge with its fiduciary-led approach.

Vincent Morris, President of OneDigital Financial Services, emphasizes the company's commitment to providing improved financial security tools: "At OneDigital, we believe everyone deserves access to the tools that support long-term financial security. Private investments have played an important role in driving outcomes for institutions and sophisticated investors for decades."

A Comprehensive Approach to Diversification

The enhanced offering taps into various investment strategies, including select private equity, private credit, and opportunistic investments, sourced through strong partnerships with leading global asset managers such as Apollo, Ares, and Blackstone. By embedding these strategies within advisor-managed portfolios, OneDigital aims to elevate diversification while adhering to regulations intended to maintain liquidity and governance standards.

The structured implementation of private investments reflects a broader trend of incorporating alternative investment vehicles into workplace retirement plans. This shift not only aims to drive enhanced returns but also seeks to manage the inherent volatility associated with market fluctuations.

Heather von Zuben, Global Head of Retirement Solutions at Blackstone, reinforced the positive impact of this approach, stating, "For decades, private markets have helped institutions achieve potential enhanced returns, greater diversification, and reduced volatility. We’re proud to work with OneDigital to expand access for retirement savers through a framework that prioritizes participant outcomes."

Tailored Solutions for Diverse Participants

OneDigital's Personalized Portfolio program meticulously implements private investments through portfolios managed by qualified advisors. This management includes consistent oversight from OneDigital's home office investment team, where all allocations undergo rigorous due diligence, adherence to liquidity guidelines, and fiduciary scrutiny. Notably, plan sponsors maintain discretion over implementation, ensuring alignment with their workforce's specific needs and risk tolerance.

The anticipation of Collective Investment Trusts (CITs) incorporating private investments becoming available to eligible plan sponsors aligns with the company's dedication to improving participant outcomes.

Raj Dhanda, Global Head of Wealth Management at Ares, echoed this sentiment, stating, "We believe retirement plan participants should have access to private market asset classes, which have the potential to drive growth, generate income, and provide long-term stability."

Conclusion: A Pathway to Financial Empowerment

OneDigital's forward-thinking approach not only enhances the allure of its retirement plans but also empowers individual participants. By embracing an investment philosophy that champions accessibility and informed decision-making, the company stands at the forefront of reshaping the retirement planning landscape. This innovative move represents an essential step in the journey toward a more robust financial future for all participants in defined contribution plans.

For further details, plan sponsors and individuals are encouraged to consult their OneDigital advisors, who can provide comprehensive guidance on these enhanced investment opportunities. In an age where financial security is paramount, OneDigital's initiatives pave the way for a new standard in retirement planning, fostering sustained success for all individuals on their financial journeys.