PLANSPONSOR - August/September 2018 - 45

Select Independent Managed Account Services
Fidelity®
Personalized Planning & Advice (PP&A)
WEBSITE: workplace.fidelity.com
PROFILE
Assets ($mm):
Plans:
Participants:
Years' experience:
Recordkeeping partners:
CAPABILITIES/OFFERINGS
$31,700 Fee model:
5,677 Separate statements:
370,000 Account review/rebalance:
15 Offers IRA/retail product:
6 Licensed call center reps:
Tiered bps*
Quarterly
Varies
Yes
Yes
PRODUCT OVERVIEW: Fidelity PP&A builds a participant profile to
understand a participant's time horizon, financial situation and
individual risk tolerance. Allocations manage risk across all asset
goals and can proactively account for both other employer benefits
and outside assets. A simplified experience includes a robust
planning dashboard and access to professional advisers.
GuidedChoice Managed Account Service
WEBSITE: guidedchoice.com/business
PROFILE
Assets ($mm):
Plans:
Participants:
Years' experience:
Recordkeeping partners:
$15,000 Fee model:
Financial Engines Professional Management
WEBSITE: financialengines.com
PROFILE
Assets ($mm):
Plans:
Participants:
Years' experience:
Recordkeeping partners:
$163,500 Fee model:
769 Separate statements:
CAPABILITIES/OFFERINGS
Tiered bps
Quarterly
1,053,000 Account review/rebalance: Monthly
14 Offers IRA/retail product:
13 Licensed call center reps:
Yes
Yes
PRODUCT OVERVIEW: Seeks to maximize risk-adjusted returns by
optimizing asset class exposures, expenses, performance, fundspecific
risk and other characteristics. Resulting portfolios are highly
personalized-82% of all portfolios are unique-and based on
market consensus expectations, vs. perceived over- or undervalued
options, which helps prevent subjective bias.
Morningstar®
CAPABILITIES/OFFERINGS
27,000 Separate statements:
Tiered, capped bps
Annually
162,000 Account review/rebalance: Quarterly
17 Offers IRA/retail product:
6 Licensed call center reps:
Yes
No
PRODUCT OVERVIEW: Creates a portfolio targeting the most appropriate
risk level and maximizing its geometric return. Unique Bi-CRRA
utility function prioritizes avoiding bad outcomes. Avoids conflicts
by not creating its own funds. Modular, scalable technology powers
financial/emotional goal planning beyond asset allocation, enables
caps on participant fees, drives broader recordkeeper compatibility.
Russell Investments Adaptive Retirement Accounts (ARA)
WEBSITE: russellinvestments.com
PROFILE
CAPABILITIES/OFFERINGS
Assets ($mm):
Plans:
Participants:
Years' experience:
Recordkeeping partners:
$330 Fee model:
6 Separate statements:
Fixed bps
None
1,927 Account review/rebalance: Quarterly
4 Offers IRA/retail product:
7 Licensed call center reps:
No
Yes
PRODUCT OVERVIEW: Launched in 2014, ARA seeks to increase the
chance of meeting retirement income goals. Allocations are
selected using a shortfall-based, optimization approach designed
to maximize income while avoiding outcomes that fall below
the targeted income. ARA adapts to each participant's situation
through time.
*Basis points.
PLANSPONSOR.com August-September 2018 45
Assets ($mm):
Plans:
Participants:
Years' experience:
Recordkeeping partners:
Retirement ManagerSM
WEBSITE: Morningstar.com/products/retirement-manager
PROFILE
CAPABILITIES/OFFERINGS
$60,300 Fee model:
104,207 Separate statements:
Varies
Quarterly
>1,400,000 Account review/rebalance: Quarterly
17 Offers IRA/retail product:
24 Licensed call center reps:
No
No
PRODUCT OVERVIEW: Employing its award-winning research, Morningstar
establishes a participant's " risk capacity " using its patented Human
Capital Methodology, which values both tradable assets and future
earnings/savings potential. Portfolios seek to dynamically balance
investor's life stage and risk level and are supported by a recently
improved user experience.
Methodology
This August, PLANSPONSOR invited leading providers of
managed account services to complete a short questionnaire
summarizing their experience and capabilities in servicing
defined contribution (DC) plan participants. Invitees were
selected based on data from our 2018 Recordkeeping
Survey and offer the most common solutions available to plan
sponsors. The survey received responses from five independent
advisory firms (see profiles on this page) and managers of five
sub-advised offerings (see sidebar, page 46). Recordkeeper
relationships were ascertained from available sources and may
be incomplete or subject to change; please contact vendors
directly for current availability or options. More extensive
product descriptions of advisory firms are available at www.
plansponsor.com/research. For additional information related
to this or any of PLANSPONSOR's industry surveys, please
email surveys@strategic-i.com.
PLANSPONSOR - August/September 2018

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