Robo-advisers gained some traction in the DC industry this year, and many have come to see how the technology could work with, rather than against, traditional advisers.
Tag: Managed accounts
Mercer recommends areas for review that defined contribution plan advisers can go over with plan sponsors.
T. Rowe Price Expands 401(k) Brokerage Services with Charles Schwab; Wilshire Launches New EVA Index Family; USAA Launches R6 Retirement Share Classes; and more.
“While target-date funds can be a simple, cost-effective option for employees, managed account participants tend to save more compared to target-date investors.”
The firm initially planned to halt commission-based brokerage sales to retirement accounts when the first DOL fiduciary rule deadlines arrive in 2017, but Merrill Lynch has decided to halt the practice immediately to head off any potential issues.
While usage of automatic plan features is falling, there is more interest in offering managed accounts and investment advice, research finds.
Conning Launches New Suite of Risk Management Software; Advisor Partners Releases Global High Quality Dividend Yield Strategy; Jackson Square Partners Offering Mutual Funds; and more.
Why managed accounts are viewed as preferable to target-date funds
Two leading executives discussed the new fiduciary rule, retirement readiness, income and more.
However, more education about how they work is needed.
Envestnet Retirement Solutions and HealthSavings Administrators LLC are rolling out a new solution to help advisers and their clients better utilize HSAs.
Fidelity's digital investing platform competes with robo advice providers by adding human component.
Nearly three-quarters think the market volatility will settle down by year’s end.
At year-end 2015, about half of all Vanguard participants were solely invested in an automatic investment program—compared with just 29% at the end of 2010.
The solution is aimed at simplifying retirement plan delivery for small employers.
Cerulli Associates outlines various hurdles to wider managed account adoption in a new report, while urging advisers to consider how managed accounts can complement TDFs.
Employers increasingly view managed accounts as a powerful talent attraction and retention tool.
While retirement plan sponsors increasingly see managed accounts as helpful to prepare participants for retirement, more education is needed to increase participant usage.
Even otherwise knowledgeable users of target-date funds seem not to fully understand the diversification benefits of TDFs, leading to the harmful behavior of “partial TDF use.”
The adviser-as-portfolio manager approach to client service can be a real differentiator, but it can also hamper a firm with significant liability and serious amounts of legwork.