ProManage, an investment firm that specializes in defined contribution plans, has developed an automated investment allocation product for plan sponsors, with whom ProManage will share the fiduciary responsibility for making the allocations.

ProManage will decide a participant's asset allocation when the account is opened and annually reallocate the participant's assets through a proprietary computer model. The model looks at three variables: the investor's age, salary and 401(k) balance.

"Motivated investors who read materials and attend meetings" are few and far between, said Carl Londe, CEO of ProManage.

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