401k advisors have some new help available in the form of a Core Menu Evaluator launched Sept. 15 by J.P. Morgan Asset Management.
The new tool is designed to enable financial professionals to analyze, compare and select defined contribution core menu investments quickly, thoroughly and objectively.
The importance of core menu selection to plan advisors and plan sponsors is highlighted by research revealing that more than 70% of 401k assets are held outside of target date funds as of year-end 2018 (per the Cerulli Report, U.S. Defined Contribution Distribution 2019).
The tool is one of the first designed specifically for defined contribution plans, allowing users to better understand a plan’s core investments by assessing portfolio composition, risk, performance and fee structure. Users can also utilize the tool to easily customize data and reports to share with plan sponsors.
The Core Menu Evaluator adds to J.P. Morgan’s suite of digital DC tools and resources that allow advisors to review/select the most appropriate QDIA, assess core menu investments and review pricing for a bundled service via the firm’s newly-launched Retirement Plan Tools & Resources landing page.
“We understand that retirement portfolios are only as strong as the investment choices available, and the Core Menu Evaluator has been specifically designed to make it simple for financial professionals to quickly, thoroughly and objectively assess investments,” said Michael Miller, Head of Retirement Americas at J.P. Morgan Asset Management.
Financial professionals can analyze investments in minutes, the company says, through a three-step process:
- Choose Investments: Compare up to six investments at one time—and run as many analyses as needed at any time.
- Select Benchmark: Use one of the suggested benchmarks or choose your own.
- Get Results: View results instantly and generate personalized PDFs to share with plan sponsor clients. Save analyses for ongoing reviews and updates.
“This new tool builds on our one-stop-shop of digital retirement resources including Target Date Compass and Price Smart, which have been developed to empower better decisions and build stronger retirement plans,” Miller said.
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
