Nation’s largest fee-only RIA now managing more than $50 billion in
PALO ALTO, Calif.--(BUSINESS WIRE)--Jun. 13, 2012--
Financial Engines today announced it is now helping more than 600,000
American workers manage their 401(k) accounts through the company’s
Professional Management service. The managed account service
professionally manages workers’ 401(k) accounts and provides every
worker access to an independent investment advisor. The company now
manages more than $50 billion in assets for workers in employer-provided
defined contribution plans.
With this milestone, Financial Engines confirms its place as the
nation’s largest fee-only registered investment advisor (RIA), managing
more than double the assets of the next-largest RIA providing investment
advice to individuals, according to InvestmentNews annual rankings1.
The company also remains the leader among defined contribution managed
account providers. Boston-based research firm Cerulli Associates ranked
Financial Engines as the largest defined contribution managed account
provider in the 1Q 2012 Cerulli Edge Retirement Edition.2
“Financial Engines was founded with the goal of helping everyday
American workers achieve a more secure retirement,” said Jeff
Maggioncalda, president and chief executive officer of Financial
Engines. “The key to our growth has been our independence, our
technology-enabled services, and our ability to earn the trust of
America’s largest employers. We have become the largest RIA in America
in a very short period of time, but we’re helping only a fraction of the
people who need help and will continue to expand our reach and impact.”
Helping Underserved Participants Regardless of Account Balance
Financial Engines’ proprietary technology platform enables the company
to make high-quality, personalized advisory services available to
millions of people who would not normally have access to independent
professional advisors. Financial Engines provides professional 401(k)
account management to 401(k) participants regardless of account balance.
Half of the 600,000 participants in Financial Engines Professional
Management have $41,000 or less in their accounts. In 2011, the company
launched Financial Engines® Income+, an extension of
Professional Management and the first retirement income solution
designed specifically for 401(k) plans. Income+ helps workers turn their
savings into reliable retirement income by providing steady monthly
payouts from a 401(k) account that can last for life.
A report from Aon Hewitt and Financial Engines published last year shows
that using the help that Financial Engines provides can make a big
difference in retirement readiness. According to the report, 401(k)
participants who used employer-provided investment help between 2006 and
2010– such as target-date funds, managed accounts, and online advice –
experience annualized returns nearly 3 percent higher (net of fees) than
individuals managing their 401(k)s on their own. The full report can be
accessed at www.financialengines.com.
“We selected Financial Engines to provide advisory services to our
employees because we realized they needed help making the right choices
to maximize their benefit under the plan,” said Madden Thomas, director
of retirement benefits at Tesoro Companies Inc. “Managing a retirement
portfolio can be complicated and overwhelming, and not everyone wants to
do it themselves. Help from Financial Engines can enable our employees
to be better prepared and on track for life after employment.”
About Financial Engines
Financial Engines is the nation’s largest independent investment
advisor, committed to providing everyone the trusted retirement help
they deserve. The company helps investors with their total retirement
picture by offering personalized retirement plans for saving,
investment, and retirement income. To meet the needs of different
investors, Financial Engines offers both Online Advice and Professional
Management. Co-founded in 1996 by Nobel Prize-winning economist Bill
Sharpe, Financial Engines works with America's leading employers and
retirement plan providers to make retirement help available to millions
of American workers. Financial Engines Advisors L.L.C. is a subsidiary
of Financial Engines, Inc. (NASDAQ: FNGN).
For more information, please visit www.financialengines.com.
The statements in this release are not guarantees of future performance
or plans. Please see our SEC filings for more detailed discussions of
the risks that could impact our future operating results and financial
condition. We undertake no obligation to update the statements in this
release to reflect events, circumstances or changes that might arise
after the issuance of this release.
1 InvestmentNews, May 28, 2012 print edition.
2 The Cerulli Edge Retirement Edition, 1Q 2012, Issue #19.
Source: Financial Engines
Katie Solan, 650-565-7662