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 Accounts |
|---|---|---|
|
Funds for Portfolio |
2 Collective Investment Trusts, actively managed by Fisher Investments |
Core investment menu |
|
Historical Performance |
10/1/2014 |
Benchmarking is often unavailable because the funds used vary from plan to plan |
|
Tactical Sub Asset Allocation |
High level of tactical decisions that are tethered to fund index. |
Very little, if any, strategic allocation decisions are being made. |
|
% of Active Management |
100% |
Varies based on fund lineup |
|
Management Approach |
Individual securities selected with a top-down active philosophy. |
Funds of funds with central decision making. |
|
Fees |
Equity: 40bps |
Varies based on fund line up. |
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Advice Fee Structure |
Fixed cost at plan level based on plan size and implementation approach. 20 - 40bps |
Tiered based on participant balance, plan size and implementation approach. 25 - 65bps |
|
Educational Support |
Dedicated Fisher PRO Client Service Team + recordkeeper staff |
RK Staff + RIA |
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.