Tag: Managed accounts

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.”

DC plan sponsor clients can leverage both TDFs and managed accounts together to maximize outcomes.

Some industry experts believe managed account performance should not be benchmarked against an index but instead against an investor’s unique individual goals.

Investors widely report that a particular life event, such as a marriage or a child being born, prompted the first use of a managed account. 

Providers are enhancing managed accounts with new features and are seeking to maximize the benefits of these solutions in order to outweigh their costs. 

The firm’s new Index-based managed account will track a market benchmark using index funds from the employer’s 401(k) lineup.

The package provides access to human advisers as well as an automated managed account built with ETFs from Schwab and other providers.

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. 

Defined contribution retirement plan industry professionals certainly have heard the “TDF versus managed account” debate; increasingly, providers are seeking a middle ground. 

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.

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...

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.