Monitoring managed account solutions
There continues to be an increase in the adoption of managed account solutions within DC plans.
A part of the fiduciary process, sponsors should evaluate several characteristics when evaluating and monitoring managed account solutions. These areas should be evaluated prior to implementing a managed account solution and then monitored, at least annually. These five areas include, but are not limited to participation, personalization, portfolio construction, performance, and fees.
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ParticipationThe number of and type of participants enrolled in the service.
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PersonalizationThe depth at which participants can provide impactful information within the managed account solution in order to receive a more customized portfolio.
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Portfolio constructionThe managed account solution’s philosophy for, and ability to, implement investment options at appropriate risk levels for participants.
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PerformancePortfolio risk and return metrics, on a ‘net net’ basis. ‘Net net’ means that returns are assessed net of investment management fees and managed account solution fees.
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FeesThe cost for participants to utilize the managed account solution.
Our new report explores these five areas and provides information related to potential benchmarks for measuring manged accounts.
Report
Monitoring managed accounts
Managed account solutions are designed to provide individual participants with customized portfolios that are constructed using the funds available in defined contribution plans.
Please see important notices for more information.
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