Press Release

Fiduciary Decisions Addresses Benchmarking Managed Accounts Within Retirement Plans

Issued by Fiduciary Decisions

Nov. 8, 2023

TIGARD, OR -- Fiduciary Decisions (FDI) announced the development of a new report that benchmarks comprehensive metrics for managed accounts within retirement plans.

The benchmarks give retirement plan sponsors verified and independent metrics to assess their managed account structure and performance and fulfill their fiduciary obligations. More than a year in the making, the report is based on FDI's patented method of making sure fees are always considered in conjunction with value.

Value for managed accounts consists of:

• the quality of the managed account provider
• the services they deliver
• the value expressed in terms of participant success measures and engagement
• and the extra services priced at market-based rates.

Numerous lawsuits have claimed that managed accounts are simply expensive "target date" funds. The FDI report makes direct comparisons of saving, investing and spending metrics for three distinct types of participants:

1. Managed Accounts participants
2. Target Date Fund participants
3. "Do-It-Yourself" participants

The FDI report also contains helpful information for plan fiduciaries by quantifying how much income would be replaced by each one of the three distinct offerings and participant types.

Tom Kmak, CEO and co-founder of FDI, states "It is not an easy job being a fiduciary, especially for larger plans that have been the target of fee lawsuits. We believe our independent, comprehensive and informative report will help fiduciaries understand the reasonableness of the fees they are paying their Managed Account provider by thoroughly examining what they are getting for what they are paying, which is completely consistent with ERISA, the regulations and the case law."

For a sample report and more information contact Mike Narkoff at mike.narkoff@fiduciarydecisions.com.

About Fiduciary Decisions

Fiduciary Decisions (FDI) is the industry leader for independent, comprehensive, and actionable decision support systems for the retirement industry. FDI was founded in 2008, at a time when growing litigation and regulation was leading to commoditization and a focus on fees rather than fiduciary performance - an environment that continues today. FDI created its patented Quality, Service, Value and Extra Credit construct to give the retirement industry a means to communicate fee reasonableness and improve outcomes for retirement plans and participants. In this way FDI supports the entire retirement plan community by providing a path for good decision-making, risk mitigation and better outcomes for participants.

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