MissionSquare Reduces Fund Costs

MissionSquare Retirement announced its largest ever fund-cost reduction on Thursday.

The firm plans to lower investment costs across some of its equity and target-date funds, according to the announcement. The change is intended to deliver greater long-term investment value to plan participants, and MissionSquare expects to reduce its overall fund expense ratio by as much as 45%.

“In aggregate, MissionSquare has approximately $58 billion in [assets under management] (as of [the second quarter of] 2025),” a firm representative wrote in an emailed response to questions. “The fund cost reductions announced today will largely apply to that pool of assets.”

MissionSquare stated that any further detail will be provided after the end of the year’s third quarter and will be available via the fund fact sheets.

The firm says its initiative also evolves its current management approach.

“While MissionSquare offers a hybrid investment approach today, the impacted portfolios will be tilted more toward a passive strategy and maintain an active overlay,” a firm representative wrote to PLANSPONSOR.

Potential benefits of the evolution, according to MissionSquare, include:

• Reduced costs, as hybrid active-passive management typically offers lower costs than active management alone;
• Enhanced diversification, allowing investors to gain exposure to a broader set of investment strategies; and
• Improved risk-adjusted performance with consistency, by integrating MissionSquare’s insights into bull and bear markets, geopolitical, inflationary and credit-driven crises, with sound portfolio construction, selection and asset allocation.

MissionSquare stated it will position the cost-reduced funds for consistent performance, relative to stated benchmarks in several market environments. The changes will occur over the next several weeks.

“At MissionSquare, our customers remain at the center of all that we do, which is why we are making a strategic decision to enhance our investment management strategy to offer more cost-effective, diversified portfolio solutions,” said Andre Robinson, MissionSquare’s CEO and president, in a statement.