The ProManage PROgram™ is our managed account service for defined contribution savings plans (including 401(k), 403(b) and 457 plans.)
The essence of our PROgram is that for those participants who have neither the time, the knowledge nor the desire to make their own investment decisions, we do it for them.
What exactly is a managed account program?
ProManage operates exclusively in the defined contribution savings plan environment where, to the best of our knowledge, we pioneered the use of the term "managed accounts" to have the following elements:
A service provided to a plan sponsor on behalf of their participants or directly to participants
Where a registered investment advisor takes on fiduciary responsibility for:
• constructing portfolios for participants who have not chosen to make their own investment decisions, and
• monitoring both the markets and the investment funds used to create those portfolios
Utilizing the investment fund choices available within the plan (typically mutual funds)
Based on the data available primarily from the plan sponsor and their service providers (data from participants may or may not be taken into account)
Reflecting the retirement investment objectives inferred from the data
Applying investment discipline to periodically construct the portfolios as well as rebalance them automatically
What made the ProManage approach so innovative was finding an effective, efficient, and durable way to bring portfolio management strategy to participants in 1998 and we have been doing so since 1999.
We should clarify that "managed accounts" in the defined contribution arena has a different meaning than the phrase "managed accounts" as used in other investment forums. For the more traditional use of the term FINRA, the Financial Industry Regulatory Authority, defines "managed account" as a portfolio of stocks or bonds owned by an individual investor with a professional investment manager who makes buy and sell decisions. Each managed account has an investment objective, and the manager oversees multiple individual accounts invested to meet the same objective.