Strategic Insight’s (SI) most recent report, “Addressing the Large Plan Markets,” plans with more than $100
million in assets account for 68%, or $3 trillion, of DC assets (including
401(k), 403(b), 457, profit sharing and other similar plans) as of year-end
2011. Despite the impressive size of the large-plan market in dollar terms,
fewer than 1% of all DC plans have more than $100 million in assets.
“The large DC
plan market has long been highly concentrated. This means that fund management
firms seeking distribution opportunities with this part of the market must take
an ‘institutional’ approach,” said Bridget Bearden, research analyst at SI and
author of the report.
“Addressing the Large Plan Markets” focuses on the unique product and servicing needs of this highly
concentrated DC plan segment, also called “institutional DC.” The report
leverages data from Simfund MF and affiliate PLANSPONSOR surveys, and relies
extensively on interviews conducted with key executives across asset managers,
recordkeepers, consultants and custodians.