Why PRO?
PRO is a managed account service. Managed accounts and target date funds may both be used as the qualified default investment alternative (QDIA), but they are very different. Why choose PRO?
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PRO Advantages Over TDFs
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PRO Advantages Over Other MAs
Factors |
PRO |
Target Date Funds |
|---|---|---|
|
Can serve as the QDIA |
Yes |
Yes |
|
Portfolio Allocation Approach |
Personalized based upon individual participant circumstances and retirement income goals. |
Based on participant's age and assumed retirement date. Allocation adjusts to become more conservative as target date approaches. |
|
Investment Strategy |
Actively managed and advised by Fisher Investments and constructed to achieve the participant’s goals. |
Invested in a range of sub-funds typically resulting in thousands of holdings, many of which may overlap. |
|
Ongoing Monitoring and Updates |
Regular, professional monitoring and updating of the strategy based on changes to market conditions and participant's unique retirement path. |
Periodic rebalancing to a predetermined glide path. |
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Personalization |
Highly personalized to participant circumstances and retirement income goals. Specific data points are automatically considered. |
Investments are determined based on the retirement date only. |
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Fees |
PROโs overall cost, which includes a service fee and an underlying fund fee, can range from 60-80 bps with lower custom pricing available for large plans. Managed accounts are associated with improved participant savings rates and more engagement, increasing the likelihood of improved retirement outcomes.* |
Cost may vary. |
|
Risk Management |
Risk management may be more dynamic, adjusting to individual participant circumstances and market fluctuations. |
Risk typically decreases over time as the target retirement date (year) approaches. |
Factors |
PRO |
Other Managed Accounts3 |
|---|---|---|
|
Portfolios constructed with…. |
Two actively managed Fisher Investments collective investment trust (CIT) funds covering global equity and broad market fixed income |
Typically, combination of some or all of the funds in a plan’s core investment menu |
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Portfolio Diversification |
Two specifically designed and diversified CIT funds deliver an easy-to-understand, streamlined portfolio |
Portfolios typically consist of 8-15 uncoordinated funds with an overabundance of holdings and overlap resulting in an esoteric portfolio |
|
Performance Benchmarking |
11-year+ CIT fund performance history enables due diligence and comparison against target date funds and other portfolios |
Often unavailable because of inconsistent portfolio implementation - the funds used vary from plan to plan |
|
Tactical Sub Asset Allocation |
Investment decisions adjusting country, sector, and style weights are deployed within the two CIT funds without requiring unnecessary participant fund transactions |
Portfolios consist of allocations to uncoordinated sub-funds negating ability to deploy tactical sub-asset allocation |
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% of Active Management |
Fisher PRO portfolios are 100% actively managed |
Percentage of active versus passive management varies based on fund lineup |
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Management Approach |
Fisher Investments top-down active management seeks to generate excess returns and manage risk in a variety of market environments to outperform the benchmark and mitigate risk |
Fund of funds approach without coordinated tactical decision making |
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Participant Educational Support |
Dedicated Fisher PRO Client Service Team + recordkeeper staff – includes webinars, onsite meetings, custom client videos and customer service phone support |
Recordkeeper staff |
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Portfolio Expense Ratio |
0.40%, average blended expense ratio of PRO portfolios |
Varies based on fund line up. |
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Advice Fee Structure (applied only to participant assets managed by the service) |
Flat fee rate available to all participants of a plan. Fee rate is set on a plan-level based on plan size, plan default investment selection, and recordkeeping provider1 |
Most often, a tiered fee rate based on participant balance. Tiered rate schedule may vary by plan size, plan default investment selection, and recordkeeping provider.3 |
|
0.20%-0.40%2 |
0.25%-0.65%3 |
1Lower rates and tiered fee structures based on participant balances may be available in certain circumstances.
2Reduce Adviser Fee Rate after applying Fisher Investments fee waivers for qualifying implementation.
3For informational purposes only. Descriptions represent most common managed account offerings available to defined contribution plans. Details and fees of any one service may differ from the descriptions provided.
Why Do Advisers Use PRO?
Check out our adviser benefits and grow your business with us.
- A Better QDIA: PRO customizes each participantโs allocation instead of focusing solely on age. In addition, participants receive savings advice, financial goals, automatic portfolio updates, as needed, progress reports, and call center support.
- Your DCIO Partner: We operate strictly as your DCIO partner. Fisher does not use the PRO service to solicit participants for rollovers or outside investment services. PRO’s financial planning tools provide insight to plan participants and can encourage them to reach out to you for other financial services.
- Business Scalability: Want to grow your business? Attract more plan sponsors by offering plan sponsors a solution that delivers a better retirement outcome for their participants. PRO managed accounts can provide advice to a broad population of participants in a scalable way, allowing you to focus your time on enhancing your firm's value proposition to plan sponsors and work more closely with high-balance participants.
- Benchmarking: Easy access to benchmarking for evaluation and ongoing monitoring of the QDIA.
- Enhanced Plan Service: We provide a suite of resources designed to support your advisory services and elevate client satisfaction. We offer live and recorded onboarding and engagement webinars, as well as educational and service materials that you or the PRO team can present to participants.
- Improved Efficiency: The PRO service team helps save time and eases your fiduciary responsibilities by producing on-demand managed account benchmarking, adoption, and engagement reports to help you and your clients document success and reduce liability.