Fidelity Expanding Managed Account Options

The firm has introduced an index-based managed account and a QDIA that uses both target-date funds and managed accounts.

In response to a growing demand for “Do-it-for-me” investment solutions that better meet an individual’s retirement savings needs, Fidelity says it is releasing two enhancements.

The firm’s new Index-based managed account will track a market benchmark using index funds from the employer’s 401(k) lineup. The Index-based managed account complements Fidelity’s Core offering and gives employers the option to choose the solution that best aligns with their investment philosophy and plan objectives.

“An increasing number of employers are recognizing that a managed account is another great option for people who need help managing their own retirement savings or staying on track as they transition into and live in retirement,” says Sangeeta Moorjani, head of Fidelity’s Workplace Managed Accounts business. “Fidelity believes in guiding participants to the right solution that meets their retirement savings needs, whether that is a target-date fund or a managed account.”

Fidelity is also offering its “Smart QDIA,” which consists of a target-date fund (TDF) and the Fidelity Portfolio Advisory Service at Work (PAS-W) managed account. Employers can customize and set criteria to determine each employee’s default investment based on factors including age, account balance and other financial factors.

Moorjani adds, “As more employees view their retirement savings as part of their overall financial wellness, employers need flexible solutions that can be tailored to their employees’ investment needs. We’re pleased to enhance our offering while continuing to provide clients with a seamless managed account service to meet the evolving demands of workplace investors.”