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Managing Managed Accounts—A Plan Sponsor View

Managed Accounts

The 2022 NAPA Summit Insider turned up some interesting perspectives on the use of, and potential for, managed accounts. But how do plan sponsors feel about them?

A recent weekly survey of Plan Sponsor Council of America (PSCA) readers found that more than half (54%) of respondents said they offer a managed account solution to participants—a noticeable increase from the 43.6% of plans that indicated they provide one in PSCA’s 64th Annual Survey. That trend will be worth keeping an eye on in the 65th Annual Survey later this year.

For this audience, the most commonly cited reason for offering a managed account was that they are more customizable to participant demographics (58.3% of respondents), closely followed by “it was recommended by the advisor.” No plans chose it because they prefer the collective fund platform.

Comments from respondents were split, but seemed generally more favorable of including a managed account in a retirement plan lineup than the split responses in a similar poll of NAPA-Net readers earlier this month. You can check out an assortment of plan sponsor comments—both from those who currently offer a managed account option—and those who don’t—here.

The findings of the 2022 NAPA 401(k) Summit Insider can be found here.