LeafHouse Financial and iJoin announced a new advisor-managed account offering that combines LeafHouses’ FlexFiduciary and reallocateIT portfolio management technologies with iJoin’s goal-based, personalized participant experience.
The technology-driven efficiency of the solution makes it possible to offer a “long-sought personalized managed account program with 3(38) investment manager fiduciary coverage at a cost of as little as six basis points (not including investment expense),” the companies’ claim.
The LeafHouse-iJoin Managed Account Program (MAP) is available through more than 40 independent recordkeepers that deploy the iJoin platform. The program addresses key employer and advisor requirements while it seeks to help individual investors be more successful.
LeafHouse’s FlexFiduciary service helps employers meet their obligations while reducing cost, oversight, effort, and risk, according to the announcement. And the program’s investment methodology works with a plan’s existing investment lineup in collaboration with the plan advisor.
Targeting TDF shortcomings
Efficient technology and cost have traditionally limited the appeal of personalized managed account solutions. At as little as 6 basis points, the LeafHouse iJoin MAP provides personalization technology that may be lower than the price of a blended target-date fund when including the expense of the underlying investments.
While target-date funds have been and continue to be a solution that simplifies investing for many, they are not tailored to the unique needs of the individual. iJoin and LeafHouse are responding by accelerating the development of innovative digital solutions, especially in the default investment space.
“Our partnership with iJoin reflects our core focus of innovating with cost-effective and scalable solutions,” Todd Kading, President and Cofounder of LeafHouse, said in a statement. “This offering has the potential to benefit millions of investors by optimizing their savings path while helping employers reduce their retirement plan costs and fiduciary burden. That’s innovating with a purpose. That’s LeafHouse.”
“A highly personalized and scalable participant experience is more than an aspirational goal–it’s a reality,” Steve McCoy, CEO of iJoin added. “We’re delivering on that promise right now. And when you combine our data-driven, personalized goal-based experience with LeafHouse’s innovative portfolio management and fiduciary service technology, you have a compelling “manage it for me” solution that can really begin to move the needle on retirement income security.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
