Principal Jumps into Managed Account Game

The Principal Managed Account Program – offered through an agreement with Ibbotson Associates – will be provided to retirement investors as part of Principal’s standard service package to plan sponsors, Principal said in a news release. The Principal, will make the new suite of offerings available to plan sponsor clients in late 2004 or early 2005.

“Nearly a quarter century of 401(k) experience demonstrates that many plan participants are still uneasy about making investment elections, and once doing so, a majority seldom, if ever, change asset allocation to keep pace with changing life stages and circumstances,” said Larry Zimpleman, president-retirement and investor services, The Principal.   “That’s why employer plan sponsors need a wide range of investment education and advice tools available to their employees.   With the addition of the Principal Managed Account Program, employers will have the full array of leading edge participant education and advice tools.”

The program will deliver personalized investment advice tailored to each participant including a quarterly rebalance and review of their investment plan at least annually. Participants will have access to the managed account program in person at enrollment meetings, through licensed counselors by telephone, and online. The service will be offered to plan sponsors at no cost and plan participants electing the service will pay an asset-based fee.