The Management of "Managed" Accounts
Target-date funds continue to garner a whole new generation of defaulted contribution flows – and yet interest continues to expand in managed accounts.
Despite a plethora of options, the vast majority of target-date fund assets has wound up in the hands of a small number of providers. Meanwhile, as participants and their retirement savings “age”, there is a growing sense that they may not be well-served by the convenience and (relative) simplicity of “off the shelf” TDF solutions.
Or, as one reader recently put it, “I feel like managed accounts serve the same purpose as target date funds and providers are pushing them to charge fees. Am I missing something?”
This week, we’d like to know how these asset allocation options – managed accounts and target-date funds – fit into your practice, and if you foresee any changes ahead.
Despite a plethora of options, the vast majority of target-date fund assets has wound up in the hands of a small number of providers. Meanwhile, as participants and their retirement savings “age”, there is a growing sense that they may not be well-served by the convenience and (relative) simplicity of “off the shelf” TDF solutions.
Or, as one reader recently put it, “I feel like managed accounts serve the same purpose as target date funds and providers are pushing them to charge fees. Am I missing something?”
This week, we’d like to know how these asset allocation options – managed accounts and target-date funds – fit into your practice, and if you foresee any changes ahead.