After receiving information about Fidelity Retirement Plan Manager, plan participants call licensed representatives to complete an Investor Profile Questionnaire, which helps identify participants’ time horizon, risk tolerance, and financial situation. Then the service invests the participant accounts in one of four model portfolios customized to their plan’s investment options.
The model portfolios will be adjusted over time to reflect changes in the markets, the economy, and plan investment options.
If plan participants hold company stock in their retirement savings plans, Fidelity Retirement Plan Manager model portfolios take the company stock holdings into account, but the service does not manage them.
Participants must have $10,000 or more in eligible plan assets to qualify for the service, which has a maximum net annual advisory fee that ranges from .35% to .60% of average daily balances, with lower fee rates on larger balances. Fidelity says the net fee can be deducted directly from participants’ accounts, or plan sponsors can choose to pay for the service for their participants.
Strategic Advisers, Inc., Fidelity’s registered investment adviser that manages $19 billion in assets, will deliver the discretionary management service, according to the firm.