Not yet a Member?
HR Magazine is highlighting the next generation of HR leaders.
Is your employee handbook ready for the New Year? With SHRM’s Employee Handbook Builder get peace of mind that your handbook is up-to-date.
30+ HR education programs, including 4 NEW programs on hot topics, are available for registration.
Join us in Chicago for the latest trends and technology in talent management, and what to expect in the future.
In managed accounts (also known as a "separately managed accounts"), individuals are assigned a basket of mutual funds based on their age and risk tolerance, and taking into consideration outside assets they may own and other retirement income they can expect—such as from a defined benefit plan, Social Security and even a spouse's portfolio. Computer models devise a recommended asset allocation plan and automatically manage the portfolio.
Managed accounts are in some ways similar to target-date funds, but they are a more "custom-made" investment solution, closely tailored to an individual's overall financial situation.
Employees, however, should be aware that managed accounts can involve higher fees. In addition to the "expense ratios" (the annual management fees charged by funds held in the account) a "wrap fee" might also be charged by the financial firm or adviser providing the managed account services. A wrap fees can often add 0.30 percent or more on top of the expenses charged by the mutual funds held in the account.
The better returns for managed accounts in some studies often are attributed to the fact that most participants using managed accounts (as opposed to selecting their own investment funds) saw a sharp increase in their stock fund exposure as opposed to safer but lower-performing bond or money market funds.
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Your session has expired. Please log in again before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
Become a SHRM Member
SHRM’s HR Vendor Directory contains over 3,200 companies