NAPA Net - Polling Places 101819

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.

Question Title

* 1. Are both managed accounts and target-date funds in your fund recommendations?

No, no managed account options.

Yes.

No, no target-date funds.

Comments about those choices?

Question Title

* 2. Has that approach changed in the past two years?

No - have been using both target-date funds and managed account options.

No, have only used target-date funds.

Yes, downplaying target-date funds.

Yes, downplaying managed accounts.

No, have only used managed account options.

Comments about that shift (or lack thereof)?

Question Title

* 3. If you use both managed accounts and target-date funds, what has been the trend in your recommendations?

Target-date funds primarily as a default.

Managed accounts as a default.

Managed accounts for larger, more sophisticated investors.

Allow both at participant option.

Allow either, at plan sponsor discretion.

Any comments?

Question Title

* 4. Which factor(s) are driving your TDF/managed account decision (check all that apply)?

Recordkeeper support/choice.

Fees.

Plan sponsor preference.

Ability to customize (or lack thereof).

Anything else?

Question Title

* 5. Which factor is PRIMARILY driving your TDF/managed account decision (generally speaking)?

Recordkeeper support/choice.

Fees.

Plan sponsor preference.

Ability to customize (or lack thereof).

Anything else?

Question Title

* 6. Other comments about managed accounts, target-date funds, the use of managed accounts and target-date funds, the factors influencing the use of managed accounts and target-date funds, the trends in the use of managed accounts and target-date funds, changes in the trends regarding the use of managed accounts and target-date funds, or life in general?

Question Title

* 7. What is your role working with retirement plans?

Advisor

Provider

TPA

Plan sponsor

Recordkeeper

Other (please specify)

Question Title

* 8. What size plans do you PRIMARILY work with?

Under $10 million in assets

$10-$20 million

$20-$50 million

$50-100 million

$100 million - $250 million

$250 million - $500 million

Above $500 million

Other (please specify)

Question Title

* 1. Are both managed accounts and target-date funds in your fund recommendations?

Question Title

* 2. Has that approach changed in the past two years?

Question Title

* 3. If you use both managed accounts and target-date funds, what has been the trend in your recommendations?

Question Title

* 4. Which factor(s) are driving your TDF/managed account decision (check all that apply)?

Question Title

* 5. Which factor is PRIMARILY driving your TDF/managed account decision (generally speaking)?

Question Title

Question Title

* 7. What is your role working with retirement plans?

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* 8. What size plans do you PRIMARILY work with?

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* 9. Suggestions for future survey questions? What would YOU like to ask other NAPA-Net readers?