This is our 12th installation of the 15 “Legends.” In our future newsletters and bulletins, we will be featuring the other Legends that were selected by PLANSPONSOR. Fred Reish was selected as one of the 15 “Legends of the Retirement Industry.” These “Legends” are individuals who have, in the past decade and a half, made a lasting contribution to the nation’s retirement security.

Bill Sharpe was one of the originators of the Capital Asset Pricing Model (for which he received the Nobel Prize in Economic Sciences in 1990) and co-founder of Financial Engines. He developed the Sharpe Ratio for investment performance analysis, the binomial method for the valuation of options, the gradient method for asset-allocation optimization, and returns-based style analysis for evaluating the style and performance of investment funds.

When Jeff Maggioncalda joined Financial Engines, the result, as described by PLANSPONSOR:

“...was a product that combined Sharpe’s vision with a technological platform to provide an Internet-based tool that collects information, including assets outside the qualified plan, providing a retirement forecast (those famous sunny and cloudy days) based on a range of possible outcomes, with built-in uncertainty that reflects the real world, rather than a simplistic win-or-lose scenario.

Over the years, that model evolved, and the company enjoyed early successes with large-plan sponsors, eventually finding its way onto a “Who’s Who” listing of plan provider Web sites as their solution to the need for participant advice. In 2004, the company rolled out a managed account program with Vanguard and, last November, acknowledging the impact of the new qualified default investment alternative (QDIA) regulations, the firm was one of the first to roll out a pricing schedule specifically for firms choosing to default existing or new participants into managed accounts.”

Congratulations to Bill Sharpe and Jeff Maggioncaldo for being named among the 15 “Legends of the Retirement Industry.”

Source: The Report to Plan Sponsor