Large Plans Account for $3 Trillion in DC Assets

April 19, 2012 ( - Large plans make up a significant majority of defined contribution (DC) assets.  

By Tara Cantore | April 19, 2012
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According to 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.