NEXUS338 Selects PIMCO For First iGPS Offering

Individualized Glide Path Solution (iGPS) is the brainchild of Philip Chao, founder of Nexus338, an ERISA 3(38) fiduciary investment manager for define contribution plans such as 401(k), 403(b) and 457(b). Nexus338 selected PIMCO to provide the personalized risk allocation methodology to build responsive individualized portfolios using PIMCO’s blended target date funds – RealPath Blend – in low-cost Collective Investment Trust (CIT) vehicles.

These blend funds combine PIMCO actively managed bonds funds and passively managed index funds from Vanguard. Under this arrangement, Nexus338 is responsible for monitoring the asset allocation methodology, the performance of the CITs and participant portfolios. Nexus338 also selected iJoin, the fintech that connects iGPS on recordkeeping platforms and delivers the user experience (UX) to participants.

Personalization is now affordable and available to all participants. It can be thought of as TDF 2.0. It combines the responsive features of a managed account but the simplicity and low cost of a TDF. When participants default their contributions, it is typically a “set it and forget it” investment. Personalization is that much more critical for this group of participants since they are the least engaged, and managing their assets based on their own data would truly be serving in their “sole” interests.