Standard & Poor's Investor Services has been enlisted by FTJ FundChoice, a Edgewood, Ky.-based defined contribution platform provider, to manage participants' portfolios. Dan Kullman, regional v.p. of the southern region for FTJ FundChoice, said depending on an individual's risk tolerance, S&P designs a mixture of funds and determines the appropriate allocation for a participant's portfolio, which is then actively managed by S&P.

Phil Edwards, managing director at Standard & Poor's Investor Services, said a such partnerships are not unusual for S&P. "We've had arrangements like these since 1995. One reason you've never heard of us is because there was always someone standing between us and the investors," he said. S&P will be more visible in this arrangement. He said that the price will be decided by financial advisors because of FTJ FundChoice arrangements.

Kullman said Ibbotson Associates used to fill the role now played by S&P. But FTJ FundChoice was impressed with S&P's portfolio strategists. "S&P has a great overall process with the way they do their due diligence. They have a huge quantitative screening process and they are always interviewing fund managers," he said. "They just have a great way to go out and access the entire universe of funds and narrow it down depending on if participants want to preserve their capital or are looking for growth."