According to a news release about its Guided Portfolio Services program, AIG VALIC’s defined contribution plans will now have access to advice from Ibbotson Associates and automated portfolio management from an independent advisory service.
Under the plan, Ibbotson will use information drawn from each participant’s financial profile and the investment options available in the participant’s retirement plan to create a personalized wealth forecast. That will also include a recommended investment portfolio.
According to AIG VALIC, if the participant chooses an automated portfolio management option, the Guided Portfolio Services program will also assume discretionary authority over the account. It will:
- implement the model portfolio
- monitor on a quarterly basis its adherence to pre-selected asset allocations
- rebalance individual investments as necessary and update the wealth forecast.
Participants who want to keep control over their plan accounts may access the wealth forecast and model investment portfolio portions of Guided Portfolio Services via an online program created specifically for this purpose, the media release said. Participants will pay an annual fee for this access and may use the service at any time and as often as they wish. They retain responsibility for implementing the advice and monitoring their portfolio’s actual performance.
Participants who choose automated portfolio management services will be offered several choices to access program services, including the retirement planning assistance of an AIG VALIC financial advisor, a telephone-based Asset Management Unit or via the Internet. They will pay an annual asset-based fee, according to the company.