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.”
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