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401(k) held away assets - AUM or AUA?

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Mar 14, 2017 4:07 pm

Do you count 401(k) assets as “Assets Under Advisement” and separate them from your organization’s RAUM)? Or do you count them in your RAUM, contending that you provide “continuous and regular management” of those assets? Specifically, how do you treat 3(38) assets vs 3(21) assets?

Any plan that is “discretionary” would be a plan in which we are acting as a 3(38) Fiduciary, since we have discretion to make investment changes, including adding and removing funds and initiating a rebalancing of the portfolios. We would be acting as a 3(21) fiduciary non-discretionary plans since we are only providing advice to the plan sponsor and the participants, we don’t have ability to initiate fund changes or rebalancing of the portfolios.