401(k) managed accounts becoming more diverse
Some record keepers of defined-contribution retirement plans are diversifying the managed-account products they offer to employers and their employees in a bid to boost uptake and diversify their revenue streams in an environment of fee compression, according to experts.
Empower Retirement is the most recent example. The record keeper — among the largest, with $590 billion in assets and more than 9 million participants — debuted its Advisor Managed Accounts product Mar. 20.
Unlike a traditional managed account — a robo-adviser for 401(k) participants that tailors an asset allocation to an individual’s goals and risk tolerance — Empower’s service allows the retirement plan adviser to select the underlying investments. The adviser would serve as a fiduciary to plan participants and charge their own fee for the service.
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