Managed mutual fund accounts are emerging as the solution
for participants intimidated by the investment
choices in participant-directed plans. According to the
Investment Company Institute, the use of asset allocation
funds in defined contribution plans has increased
from $6 billion to $168 billion over the last 10 years and
by 63% in 2005 alone!
The growth of managed accounts is often solely attributed
to their ease of use by participants. However, a recent
study by John Hancock reveals that there is an even more
compelling reason for plan participants to use managed accounts
– better performance. That study of retirement plan participants
between 2000 and 2004 found that participants utilizing
asset allocation funds experienced returns 3-4% higher than
those selecting directing their own mutual fund selections.
A recent study of retirement
plan participants found that participants utilizing asset
allocation funds experienced returns 3-4% higher between
the years 2000 and 2004 than those directing their own mutual
fund selections. Source: John Hancock
More than just an age-based lifestyle or target fund, ManagedPlan
offers customized advice and portfolio oversight from a
selection of independent investment managers. The portfolios
deliver long-term professional management to plan participants
in the form of continuous monitoring, rebalancing and reallocation.
Participants are aided in their selection of the appropriate
actively managed portfolios through the use of ManagedPlan’s
on-line risk tolerance questionnaire featuring auto-prompt
for changed circumstances.
Since no fund or investment alliances are maintained or
proprietary funds are used, ManagedPlan’s investment managers
offer an unmatched level of objectivity in fund selection.
Indeed, neither Professional Capital Services nor any of
the investment managers offered through ManagedPlan have
any interest in or affiliation with any of the investments
offered to Plans participating under the Program.
Next
