Tag: Investments

Managed Accounts and the Shifting Fiduciary Landscape

Common sources of plan sponsor and participant concern with managed accounts include cost concerns, lack of participant understanding, and lack of qualified default investment alternative status unless only options on the plan's core investment lineup are used.

TDFs Have Improved Participant Diversification

About a third of participants across Millennials, Generation X, and Baby Boomers who self-manage the investment of their plan accounts are more conservative than a typical target-date fund appropriate to their age.

Economies of Scale Strongly Benefit the Largest Plans

Institutional investors with less than $1 billion in assets paid 65% more for investment management than medium-size funds ($1 billion to $10 billion in assets) and 91% more than the largest funds (greater than $100 billion in assets), Callan found.