Poll: Money Managers Work with 69% of DC Plans

November 30, 2007 (PLANSPONSOR.COM) - Sixty-nine percent of defined contribution plan sponsors use an investment management consultant, according to a new survey.

A news release from the Brookfield, Wisconsin-based International Foundation of Employee Benefit Plans (IFEBP) said 55% of DC sponsors indicated they look over their investment performance quarterly. Thirty-four percent said they pay service provider fees based on agreed-upon service performance levels.

IFEBP found 54% of responding DC sponsors have a bundled arrangement with their investment service providers, 31% use an unbundled setup, and 8% use an alliance arrangement.

Some 45% of DC plans use target date funds and 41% have an auto rebalancing feature in their plans, according to the press release.

Meanwhile, on the defined benefit side, 88% of DB sponsors said they hire consultants to help with plan investment management while almost all (94%) use outside investment managers. Nearly two-thirds (65%) of responding DB plan sponsors review investment manager performance quarterly. About one-third of sponsors reported they meet with their investment managers annually and a quarter of sponsors do so only as necessary.

The survey reflects responses from 167 corporations, multiemployer trust funds and public/governmental employers in the United States and Canada.

More information is atwww.ifebp.org/surveysample .