Alerus’ managed account program (MAP) delivers retirement advice directly to participants, helping them navigate retirement with confidence. MAP is much more than an investment solution, it allows participants to prioritize personal goals to deliver a tailored solution. This includes advice on contribution rate and investment strategy to meet participant goals around retirement income range, retirement age, and risk appetite.

Personalization. Unlike target-date funds that focus on a hypothetical retirement date or risk-based solutions with static portfolios, Alerus’ managed accounts create solutions based on personalized goals. According to research by the Vanguard Group, Inc., most participants who adopted managed account advice realized higher projected retirement wealth through improved expected returns and savings.

Not all managed account programs are equal, many focus on investment allocation only and are often constructed from the line-up in the current retirement plan. Alerus’ solution offers holistic retirement advice including contribution rate, prioritization of retirement goals, ability to include external retirement assets in your scenario, no proprietary mutual funds, and cost savings to balances above $400,000 by introducing individual securities ultimately reducing fund costs.

When a participant enrolls in MAP they provide relevant retirement information through an intuitive digital experience. MAP then analyzes combinations of retirement goals (retirement age and retirement income) and actions (savings rate and investment strategy). For each combination of these four elements, MAP determines the statistical likelihood that the strategy will fund an acceptable level of retirement income from the start of your retirement through your life expectancy. Alerus will monitor your managed account’s performance, periodically rebalance it back to its target allocations, and if your personal or financial circumstances lead to a different suggested strategy, we may change your investment to reflect the updated strategy. We recommend participants review and update their MAP data annually or as material changes in your personal situation occur.

Alerus will act as your investment advisor with full decision-making authority over the investments in your account(s). Alerus acknowledges that we are an “investment manager” as defined by ERISA’s Section 3(38). Unlike most other providers, the Alerus Managed Account Program does not use proprietary mutual funds in the participant asset allocations. This gives Alerus the freedom to create the most effective portfolio for participants. In addition, Alerus may offer individual securities to balances above $400,000 reducing management cost.

There is no minimum balance requirement.

The fee is 0.45 percent prorated over 365 days and applied to the average daily balance of your managed account. The fee is accrued daily and collected monthly. On an annual basis, the fee equals approximately $4.50 for each $1,000 invested.

Alerus MAP offers a digital experience to help you navigate your retirement goals. Alerus has backed this technology with a team of financial professionals to support more complex situations or questions. Participants are able to pick-up the phone and talk to a professional at no additional charge.

Upon enrolling in the MAP, participants no longer have the ability to direct investments. However, they can take an active role at any time by personalizing their retirement strategy. For example, participants can adjust their risk preference, change their desired retirement age, adjust savings rate, change desired retirement income, or include other investment accounts outside of the plan, and a new simulation will analyze and re-run their scenario.

Participants can exit the MAP at any time, moving assets from the Alerus MAP to the core funds in the plan. Transfers into and out of the Alerus MAP require three to five business days for processing.