The Morningstar Retirement group within Morningstar Investment Management LLC, and ADP Retirement Services, have partnered together to offer more employees—regardless of the size of their employer—access to personalized retirement investment and savings advice through managed accounts.
According to the announcement, ADP's decision to team with Morningstar Investment Management comes at a time when retirement plan participants are looking for increased help navigating an uncertain economic environment.
"Continued inflation and market volatility have made the need to help employees figure out how to maximize and invest their retirement savings greater than ever," says Brock Johnson, president of Global Retirement and Workplace Services at Morningstar Investment Management. "This is especially true in the small end of the market, where access to personalized advice within retirement plans is often limited.”
Johnson adds that ADP's reach in the industry is so extensive that his firm believes the collaboration can really “move the needle” in improving retirement results, not only in the small end of the retirement plan market but across all plans.
As one of the country's largest plan recordkeepers, ADP Retirement Services will offer Morningstar Investment Management's advisor managed accounts, alongside the traditional managed accounts service. Both services are powered by Morningstar Investment Management's engine and methodologies to build a personalized investment portfolio for each retirement plan participant, as well as to help them determine their savings rate and goals. The service then manages the participant's retirement account for them, assuming discretionary authority over their investment portfolio.
Morningstar Investment Management's advisor managed account services allows RIA firms and their advisors to offer a co-branded managed account service to their retirement plan clients. This service is designed so participants receive personalized advice based on model portfolios aligned with the RIA firm's investment expertise and philosophies, the announcement notes. In addition, ADP will make advisor managed accounts available to two national retirement-focused RIA firms.
"ADP Retirement Services is more than a retirement plan provider to our over 100,000 plan sponsor clients—we are their retirement ally leveraging innovative technology to help participants have better retirement savings outcomes. We think every retirement plan, no matter the size, should have access to personalized advice at scale," said Chris Magno, SVP and General Manager of ADP Retirement Services.
