Financial Engines Reaches $5 Billion in Assets Under Management
PALO ALTO, CA, August 2, 2006 -- Financial Engines, Inc. today announced that it has over $5 billion in assets under management (AUM) in managed accounts. Financial Engines now provides managed accounts to over 70,000 participants.
"Managed accounts are currently enjoying a great deal of momentum in the marketplace because they solve important problems for plan sponsors and 401k participants," explained Jeff Maggioncalda, president and CEO of Financial Engines. "And we're expecting the demand to grow even stronger as more companies seek solutions to help their employees better prepare for retirement."
Financial Engines first rolled out managed accounts in 2004 to help employees who want an independent professional to manage their 401k for them. The company works with leading 401k providers and recordkeepers to make the managed account program widely available.
According to a recently released working paper by Professor Julie Agnew for the Center for Retirement Research at Boston College, managed accounts tend to appeal to employees across different demographic groups, including gender, employment tenure and full-time/part-time status.
"As policy makers encourage the redesign of the 401k to be more automatic, managed accounts are likely to play a very large role in auto-investing," continued Maggioncalda. "In the last few months, we have been seeing more companies automatically enroll their entire workforce in their 401k plans, and making managed accounts the default investment."
About Financial Engines
Financial Engines is a new breed of investment advisor providing personalized investment advice and portfolio management to 401k 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 a wide range of investors. For more information, please visit www.financialengines.com.
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