Professional investment assistance helps DC plan participants’ outcomes; however, an analysis from Alight Solutions found users of managed accounts see higher returns, are more diversified and save more in their DC plans.
A new analysis out from Empower Retirement finds historical investment performance does not serve as an optimal overall measure of value delivered by a managed account; there is strong evidence to suggest “engaged participants” extract more value from managed accounts.
A paper from Morningstar Investment Management lays out a framework for advisers and plan sponsors to determine the qualified default investment alternative (QDIA) that is the best fit for a plan's demographics.
New Cerulli research shows the most common reason for which 401(k) plan sponsors offer participants a managed account service is that it can be positioned as a retirement income solution; also considered is the emergence of so-called “shadow fiduciaries.”
Managed accounts offers unique personalization catered to a participant’s needs, but are the possible fiduciary mishaps worth implementing the product?
A Mercer white paper says defined contribution plan sponsors should focus on ensuring sound plan management and establishing success measures, among other things.
Swerdlin & Company Integrates Stadion Storyline; Vanguard Offers First U.S. Actively Managed ETF Suite; and AAM Enters U.S. ETF Market with New Dividend Funds; and more.
The complaint suggests the companies engaged in “Tammany-like”
collusion to steer assets into more favorable investments; both providers have issued
strong denials and requests for summary judgement.
Most executives interviewed by Cerulli believe that
home-office discretion will increase as “underperforming advisers are
identified and persuaded to use portfolios created by the headquarters
consulting group.”
Some industry experts believe managed account performance should
not be benchmarked against an index but instead against an investor’s unique
individual goals.
Providers are enhancing managed accounts with new
features and are seeking to maximize the benefits of these solutions in order
to outweigh their costs.
Research from Cerulli Associates warns consumers broadly do
not understand liquid alternative investments—what they are made of or how they
are supposed to function.