On average, DC plan sponsors include approximately 20 investment options from three to five separate investment managers within their plan investment lineup. While the majority left their plan investment options untouched over the past year, sponsors anticipate more activity in the upcoming 12 months.
More than one-third (36%) of plan sponsors intend to change their mix of investments in the coming year – typically swapping an existing option with another manager without changing the number of investment choices. The primary reason plan sponsors identify for dropping or reducing the number of options offered by a particular manager is underperformance relative to benchmarks. Fees, consolidation, and communication issues are also commonly cited reasons.
The DC Investment Manager Brandscape™ report helps DCIO providers assess their competitive position in the marketplace and improve their marketing and distribution efforts to maximize future growth. The report examines the usage and perceptions of DCIO providers and includes detailed analysis on awareness, perception, consideration, satisfaction, and loyalty for the leading 45 investment managers in the DC market.