Fidelity Expands Managed Account Offering to Advisors, Recordkeepers

The offering is a personalized, customized solution for employee retirement accounts

Fidelity Institutional is expanding its managed account offering for workplace retirement accounts to retirement advisors and recordkeepers to help them scale and grow their retirement business.

In a press release announcing the expanded offering of Fidelity Portfolio Advisory Service at Work (PAS-W), Fidelity said the move reflects the increasing popularity of managed accounts among plan sponsors, plan participants and the advisors who serve them, which in turn, reflects increased focus on fiduciary responsibility, financial wellness and retirement readiness.

“An increasing number of employers and employees are recognizing that a managed account is a great option for people who may not have the experience or confidence to manage their own retirement savings, especially during time of market uncertainty,” said Sangeeta Moorjani, head of Fidelity’s Workplace Management Accounts business, in a statement.

(Related on ThinkAdvisor:Workplace Retirement Accounts Aren’t Working, Policy Wonks Say)

At the same time an increasing number of advisory firms are moving from just accommodating retirement plan requests to growing their retirement plan business, which “increases the need for solutions to manage that growth with efficiently and scalability,” according to Fidelity.

“Many firms are focused on scale and looking to grow their retirement business efficiently while ensuring plan participants have the customization they need,” said Michael Durbin, head of Fidelity Institutional Product.

The goal of giving retirement advisors and recordkeepers access to PAS-W, said Moorjani, “is to provide them a more personalized and customized investment management solution … that goes beyond the cookie cutter solutions available today.”

In addition, Fidelity’s Strategic Advisers Inc., an RIA and Erisa 3(38) investment manager, takes on the fiduciary responsibility for investment decisions made on behalf of plan participants.

Fidelity’s managed accounts platform currently has more than 1 million customers, about one-third of them in workplace savings plans. Ninety-seven percent of employees who join PAS-W stay invested and maintain their accounts, according to Fidelity data from Jan. 1, 2010 to Feb. 28, 2015.

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