Managed Account Investors Appreciate Ongoing Monitoring

Fidelity Investments conducted a survey to find out why retirement plan participants value managed accounts and found that 48% appreciate the ongoing monitoring of their investments, and 44% like the annual review.

However, more education about managed accounts is clearly needed, as 39% who don’t use a managed account say they do not know how they work, and 25% said not knowing enough about them is a major barrier to adoption. Once it is explained what a managed account is, 52% say it would be relevant to their needs, and 52% say they would find the service useful.

Fidelity recommends that plan sponsors work with their managed account providers to offer educational programs about managed accounts.

“The good news is that awareness and education around managed accounts helps drive overall participant education and action,” says Chad Elliot, senior vice president of Fidelity’s workplace managed account business. “In general, participants who respond to the educational programs are more likely to make a change to their asset allocation, increase their savings rates and review their retirement plan.”