have decided to end their relationship that spanned two decades.
“We have ended our relationship with Scudder and replaced the Scudder Funds offering with a sophisticated, yet simple set of three index-based funds,” said Nancy M. Smith, vice president of investment services at AARP Financial, in an e-mailed statement.
“We believe this approach meets the needs of a greater number of AARP members and Baby Boomers approaching 50,” she added.
Apart from the three index-based funds, AARP Financial’s new investment program also includes investment counselors on hand to aid individuals in figuring out which AARP fund is appropriate for them.
Sought for comment, a spokesperson for Scudder wrote in an e-mail: "Scudder and AARP have enjoyed a long and successful partnership but have mutually agreed not to renew the existing contract between the two firms in order to better serve the needs of investors. Scudder remains committed to providing high quality investment services to AARP members as well as to working with AARP on a smooth transition."
Their partnership dates back to 1984.
Early last year, reports surfaced that AARP has brought in an outside firm to review its mutual fund program with Scudder.
In October, Morningstar reported that the organization had tapped State Street Global Advisors to advise a three-fund suite consisting of conservative, moderate and aggressive funds.
Stay ahead of the news ... Sign up for our email alerts now