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Money Management Executive

ProManage to Offer Automated 401(k) Allocation

April 15, 2002, 1:00 a.m. EDT 1 Min Read

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 at the outset of their opening an account and annually reallocate the participant’s assets annually through a proprietary computer model. The model looks at just three variables: the investor’s age, pay and 401(k) balance.

"Motivated investors who will read materials, get online and attend meetings" are few and far between, said Carl Londe, CEO of ProManage. "We have found participation of only 82% and 84% at two of our clients. This supports a study by Forrester Research showing that 85% of defined contribution investors report they do not have the time, knowledge or desire to make investment decisions," Londe said.

Emplant, a 401(k) technology service provider, will provide the software for the new service, which the company will launch in June

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Money Management Executive
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