SUNNYVALE, Calif.--(BUSINESS WIRE)--Oct. 1, 2014--
Financial Engines (NASDAQ:FNGN), America’s largest independent
registered investment advisor1, today announced the 10-year
anniversary of its managed account program. The company first introduced
managed accounts in 2004 for workers who wanted to delegate the ongoing
investment management of their retirement accounts to a professional.
Today, more than 800,000 401(k) participants with more than $100 billion
in collective assets have their defined contribution accounts
professionally managed by Financial Engines. As of June 30, 2014,
Financial Engines had more than double the assets under management of
its nearest competitor and more than all managed account competitors
Key to Financial Engines’ rapid growth has been the trust it has built
with large employers and close integration of its services with many of
the industry’s largest 401(k) plan providers. Some of the leading
companies that make Financial Engines managed accounts available to
their employees include: Delta Air Lines, Northrop Grumman, SunTrust
Banks, Inc. and Tenneco Inc. The company makes its services available
of the industry’s largest retirement plan providers, including Aon
Hewitt, Great-West Financial, Mercer, T. Rowe Price, Vanguard, Voya
Financial and Xerox HR Solutions.
“We are gratified that managed accounts have been widely embraced by the
industry and 401(k) participants and are honored to be helping so many
people achieve their retirement goals,” explained Jeff Maggioncalda, CEO
of Financial Engines. “Managed accounts have been successful because
they fill a need for personalized investment management that other
investment products like target-date funds can’t provide. That’s
especially true for near-retirees, who often want to talk with an
independent advisor and need extra help deciding when to claim Social
Security or creating a retirement income plan.”
Managed Accounts Deliver Value
Another reason for the steady growth of managed accounts is that
professional help works. According to joint research3 from
Aon Hewitt and Financial Engines that examined investing behavior of
723,000 workers at 14 large U.S. employers, 401(k) participants who used
investment help via managed accounts, target-date funds or online
advice, earned higher median annual returns than those who went it
alone. On average, employees who used Help (which includes managed
accounts) had median annual returns that were 3.32 percent higher, net
of fees, than participants who managed their own portfolios.4
Today, the typical Financial Engines managed account member is 48 years
old with an average 401(k) account balance of $123,000. Due to their
flexibility, managed accounts are able to build risk-appropriate,
personalized portfolios to fit an individual’s personal circumstances.
For example, managed accounts can take into consideration the
anticipated effects of company stock holdings and cash balance plan
benefits to help keep investors at an appropriate risk level. Since
Financial Engines’ methodology and approach take an individual’s
circumstances into account, over three-quarters of managed account
member portfolios are unique.
“Over the last 10 years, we have consistently added new services and
enhanced the managed account member experience,” said Maggioncalda.
“What started out as primarily professional account management can now
include unlimited phone access to an advisor, annual one-on-one
retirement checkups, retirement income planning with Income+ and most
recently, Social Security guidance at no additional charge. We will
continue to expand the range of independent help we provide—especially
to near-retirees, who most need our help.”
About Financial Engines: (NASDAQ: FNGN)
Financial Engines is America’s largest independent investment advisor.
We help people make the most of their retirement assets by providing
professional investment management and advice.
Headquartered in Sunnyvale, CA, Financial Engines was co-founded in 1996
by Nobel Prize-winning economist Bill Sharpe. Today, we offer retirement
help to more than nine million employees across 580+ companies
nationwide (including more than 140 of the Fortune 500). Our investment
methodology, combined with powerful online services, dedicated advisor
center and personal attention allow us to help more Americans get on the
path to a secure retirement.
For more information, visit www.financialengines.com.
Advisory and sub-advisory services provided by Financial Engines
Advisors, L.L.C., a federally registered investment advisor and
wholly-owned subsidiary of Financial Engines, Inc. Financial Engines
does not guarantee future results.
This press release contains forward-looking statements, including
statements regarding the use of professional investment and financial
planning help, which involve risks and uncertainties that could cause
actual results to differ materially. These risks and uncertainties are
outlined in our SEC filings. You are cautioned not to unduly rely on
these forward-looking statements, which speak only as of the date of
this press release. Unless required by law, Financial Engines undertakes
no obligation to publicly revise any forward-looking statement to
reflect circumstances or events after the date of this press release or
to report the occurrence of unanticipated events.
1 For independence methodology and ranking, see InvestmentNews
RIA Data Center. (http://data.investmentnews.com/ria/).
2 Cerulli Quantitative Insights, 2Q, 2014.
3 Help in Defined Contribution Plans: 2006 through 2012.
4 Copies of the full report that includes methodology and
data information are available for download on www.financialengines.com
Source: Financial Engines
Mike Jurs, 408-498-6590
Gardell Kreuter, 646-428-0618