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New Managed Account Program

  • 7/14/2017 5:50:00 AM
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New Managed Account Program

At ABG Michigan, we’re committed to offering the most flexible, efficient and personalized options to help people get the most out of their opportunity to save for retirement. We know that some retirement plan participants want to make choices on their own, while others prefer to leave things in the hands of a professional. That’s why we’re really pleased to introduce you to the new Managed Account program we are launching in conjunction with Fidelity.

In a managed account, an employee’s asset allocation is based on their individual situation. This includes looking at important factors like their age, their time horizon, their risk tolerance, and their overall financial picture. Fidelity’s experience has shown that employees who elect a managed account option tend to defer more upon enrollment in the service and stay committed to their savings plan.* In fact, Fidelity reports that over the last six years, they’ve seen 97% retention among managed account participants.** While this isn’t a guarantee of performance, we know these are important drivers of long-term success for anyone saving for retirement.

We’re confident that offering this kind of program makes sense, but we also know that it’s essential that it be easy to start and use. We’ve accomplished this by seamlessly integrating the managed account option into our recordkeeping platform. That means that plan sponsors don't have to integrate any technology on their own and that employees can participate using the access they already have to their ABG Michigan Retirement Plan Portal.

As we introduce the program, ABG and Fidelity will launch a robust communications program to create awareness and to educate and provide incentives for employees to participate. Enrollment is well supported, too, both by easy-to-use online tools and the ready help of dedicated onboarding teams. And each employee who starts will receive a welcome kit followed by quarterly updates, video education and annual reviews of their progress.

Fidelity has more than 25 years of experience managing investment portfolios and together we’re happy to offer our advisor partners an opportunity to add a professionally managed account option to their retirement plans. We encourage you to contact us to learn more about how the program works. As always, thanks for the opportunity to contribute to your success.

*Analysis includes participants who (a) enrolled in Fidelity Portfolio Advisory Service at Work (PAS-W) between January 2007 and December 2014 on our recordkeeping platform (b) maintained positive account balance one year before and after quarter-end of enrollment, (c) includes participants enrolled in Automatic Increase Program. Excludes participants with prior enrollment in a Wealth Management Account on our recordkeeping platform. Excludes all non-qualified plans, all tax-exempt pooled plans, and the FMR Retirement Savings Plan. Annual Increase Program (AIP) is a service that allows plan participants, based on the terms of their plan, to systematically increase their personal contributions each year to the plan. Most increase rates are 1%; however, plans or participants can, in accordance with existing regulatory guidance select different increase rates. The plan determines whether to mandate an increase specific date for all participants or allow participants to choose their own increase date.

**Fidelity record kept data on the percentage of participants who maintained a PAS-W account, measured from January 1, 2010, to February 28, 2015 (excludes NonQual plans and FMRCo plans). Fidelity Investments is an independent company, unaffiliated with ABG Michigan. Fidelity Investments is a service provider to ABG Michigan.

There is no form of legal partnership, agency affiliation, or similar relationship between your financial advisor and Fidelity Investments, nor is such a relationship created or implied by the information herein. Fidelity Investments has not been involved in the preparation of the content supplied by ABG Michigan and does not guarantee, or assume any responsibility for, its content.

Fidelity Clearing & Custody SolutionsSM provides clearing, custody, or other brokerage services through National Financial Services LLC or Fidelity Brokerage Services LLC, Members NYSE, SIPC.



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