Page 46 - DCAC Nov 2025 Files
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Empower Institutional Separate Accounts (ISAs) Pros & Cons
Pros Cons
• Cost savings • Lack of robust information for ISAs available
online creating an inability for participants to
• The potential of improved net of fees do their own research outside of Empower
performance
• Cash flow differences between the mutual
• From a participant’s viewpoint, ISAs operate fund and ISA can create discrepancies in
very similar to mutual funds or CITs returns, sometimes favoring the mutual fund
• Inability to see and track the fee breakdown
between the asset manager and Empower
– Empower is collecting additional revenue
that cannot be traced
• If ISA assets drop below what Empower
requires to operate the fund without a loss,
Empower will map the ISA assets to a similar
ISA
– The client is provided a 90-day notice
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