Methodology
This October, approximately 1,500 adviser subscribers to PLANADVISER were asked to respond to a 42-question survey, developed by the PLANADVISER editorial and research teams. Survey questions pertained to size and scope of the adviser’s qualified plan business, practice management, compensation and client service, and his or her assessments of investment managers, mutual funds and defined contribution (DC) providers.
At the close of the survey, 623 complete responses had been received from retirement plan advisers. To qualify to supply opinions on mutual fund families and specific mutual funds, an adviser had to be personally involved in evaluating and recommending fund choices in an advisory capacity to qualified plan clients; 379 advisers met this qualification.
In order to evaluate defined contribution providers, advisers had to answer affirmatively that they personally evaluate and recommend DC providers in an advisory capacity for qualified plan clients; 339 advisers did so. In addition, an adviser had to have worked with a defined contribution provider more than once for his or her favorability rating of that recordkeeper to count. For more information and for additional research available, please contact surveys@assetinternational.com.
Top criteria used to decide which funds are appropriate for plans
1st | 2nd | 3rd | 4th | 5th | |
---|---|---|---|---|---|
Performance (one-year returns) | 1.5% | 16.9% | 33.8% | 23.1% | 24.6% |
Performance (five-year returns) | 26.9% | 30.3% | 22.9% | 10.4% | 9.5% |
Performance vs. benchmarks | 47.5% | 26.1% | 13.9% | 10.0% | 2.5% |
Manager tenure | 8.5% | 17.6% | 26.7% | 25.6% | 21.6% |
Brand | 6.6% | 8.2% | 23.0% | 32.8% | 29.5% |
Style drift | 5.2% | 12.7% | 22.4% | 29.1% | 30.6% |
Adviser support | 8.8% | 5.9% | 11.8% | 29.4% | 44.1% |
Supporting materials | 12.0% | 18.8% | 26.3% | 27.8% | 15.0% |
Fee structure for adviser | 9.4% | 18.8% | 18.8% | 23.1% | 29.9% |
Fee structure for plan | 15.1% | 5.5% | 13.7% | 23.3% | 42.5% |
Plan demographics | 5.1% | 12.8% | 10.3% | 28.2% | 43.6% |