Page 47 - DCAC Nov 2025 Files

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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