CHICAGO--(BUSINESS WIRE)--UBS Global Asset Management and Genworth Financial Inc. (NYSE:GNW - News) today announced their agreement to introduce a guaranteed income for life option for 401(k) participants that will be available with UBS’s recently announced target retirement funds and other investment options. The guaranteed income for life benefit is expected to be available by the end of the first quarter and is a result of a collaborative effort between UBS Global Asset Management and Genworth Financial, a Fortune 500 company with an extensive track record in retirement income solutions.

The benefit will be designed to allay investor worries that Social Security and defined benefit pension plans may not be sufficient sources of future income. These concerns were demonstrated by a recent study in which 93 percent of respondents said that having a source of guaranteed income in addition to Social Security is important.¹ Unlike many other income generating vehicles, the benefit will be designed to be easy to understand, low cost, portable and allow any remaining assets to be passed on to beneficiaries.

“We will now be able to provide the income security of a defined benefit plan to employees in a 401(k) plan,” said Drew Carrington, Head of the Defined Contribution and Retirement Solutions Group at UBS Global Asset Management. “Employing our 25-year asset allocation approach, our target retirement funds already address three major risks—market, shortfall and inflation—faced by investors as they prepare for retirement. This guaranteed income for life option is the final piece of the puzzle—we are now able to help plan sponsors provide employees assurance that they will not outlive the income they receive through retirement.”

The guaranteed income for life benefit fills a void left by the closing and freezing of defined benefit pension plans, a primary source of income for many retirees. Subject to regulatory approval, the new benefit will allow 401(k) participants to withdraw five percent of their highest annual locked-in portfolio value for life, even if total withdrawals ultimately exceed the value of their portfolios. In addition, the guaranteed income a participant receives can rise if the total value of their portfolio increases during strong performing markets.

“UBS Global Asset Management’s track record in risk management and active asset allocation capabilities will make this a win-win for us," said Fred Conley, President, Institutional Retirement Group at Genworth. “By teaming up with them to develop this benefit, we’re extending our expertise to provide more 401(k) participants with increased retirement security, regardless of market performance.”

UBS Global Asset Management anticipates that it will be implementing a guaranteed income for life benefit this year, along with the currently available target retirement funds. For plan sponsors who have already adopted target date funds or do not intend to do so, the benefit will also be available via a UBS non-target date investment option.

How the guaranteed income for life benefit works

The benefit will be available for enrollment by 401(k) participants beginning at age 50. The minimum value of the income for life guarantee is based on the account balance at the time of enrollment. Thereafter, future contributions and positive market performance can increase the guaranteed withdrawal amount. Market declines will not affect the level of guarantee. Automatic withdrawals of 5% of the highest locked-in account value can begin at age 65. In the event a participant dies, any remaining assets pass on to their beneficiaries. The lifetime income guarantee will be portable, and preserved via an IRA rollover.

About Genworth Financial

Genworth Financial, Inc. (NYSE:GNW - News) is a leading financial security company meeting the retirement, longevity and lifestyle protection, investment and mortgage insurance needs of more than 15 million customers. It has a presence in more than 25 countries. Genworth Life and Annuity Insurance Company, which will be the issuer of the guarantee, is a Genworth Financial company.

About UBS Global Asset Management

UBS Global Asset Management is one of the world’s leading asset managers, providing traditional, alternative and real estate investment management solutions to private clients, financial intermediaries and institutional investors worldwide. Invested assets totaled some USD 801 billion² at September 30, 2007, making the firm one of the largest global institutional asset managers, a leading fund house in Europe and the largest mutual fund manager in Switzerland.³

With around 3,500 employees, located in 25 countries, UBS Global Asset Management is a truly global firm. The main offices are in Basel, Chicago, Frankfurt, Grand Cayman, Hartford, Hong Kong, London, Luxembourg, New York, Rio de Janeiro, Sydney, Tokyo, Toronto and Zurich.

¹ Source: America Speaks Out On Retirement: 2007 Investor Research Study Conducted By Harris Interactive.

² Assets under management are representative of UBS Global Asset Management business group worldwide. Assets under management for UBS Global Asset Management (Americas) Inc. and UBS Global Asset Management Trust Company total $163 billion as of September 30, 2007.

³ Source: Lipper FundFlows Insight Report (as of September 30, 2007)

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Source: UBS Global Asset Management

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