Drastic growth in the prevalence, availability, and marketing of professionally managed solutions in defined contribution (DC) plans has accelerated the comparison between target date funds (TDF) and managed accounts (MA). We examined a model plan and analyzed the merits of both solutions by focusing on three areas:
- the asset allocation of a commonly used TDF
- the asset allocation of a commonly used MA
- the model plan’s participant asset allocations implemented with the MA provider with an assertion of 99% personalization
For a summary of this whitepaper, read Summary: Are Managed Accounts More Efficient Than Target Date Funds?