Financial Engines
FINANCIAL ENGINES CROSSES $3 BILLION MARK IN ASSETS UNDER MANAGEMENT
Assets Triple in 401(k) Managed Account Program Since the Beginning of the Year
PALO ALTO, Calif. November 30, 2005 – Financial Engines, Inc. today announced that it has reached $3 billion in assets under management in its managed account program, up from $1 billion at the beginning of the year. To date, Financial Engines has rolled out managed accounts for 34 plan sponsors, representing more than 494,000 participants and $28.5 billion in plan assets with leading 401(k) providers.
Financial Engines introduced managed accounts in 2004 to help employees who want an independent professional to manage their 401(k) for them. The company works with plan providers to make the managed account program widely available.
"We continue to see strong employer demand for managed accounts and are currently working with six of the leading 401(k) plan providers to make the program readily available to participants," said Jeff Maggioncalda, president and CEO of Financial Engines. "Employers realize that managed accounts address a wide range of 401(k) problems including too much company stock, poor diversification and low participation and savings rates."
Studies have shown that without professional assistance, many employees fail to invest wisely for retirement, putting their retirements at risk and creating fiduciary risk for employers. The continued growth of managed account programs demonstrates that people want help with their 401(k) plans.
"Employers who offer 401(k) plans shouldn't assume that employees want to manage investments on their own," said Maggioncalda. "Managed accounts are growing because many people would rather have someone else invest for them."
About Financial Engines
Financial Engines is a new breed of investment advisor providing personalized investment advice and portfolio management to 401(k) participants. Founded by Nobel Prize-winning economist, William F. Sharpe, Financial Engines serves millions of employees at many of America's largest corporations. Patented advice technology and institutional-quality investment methodology allow Financial Engines to offer an array of advisory services to meet the needs of all investors. For more information, please visit www.financialengines.com.
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Financial Engines® is a registered trademark of Financial Engines. Advisory and sub-advisory services are provided by Financial Engines Advisors LLC, a federally registered investment adviser.