RESEARCH |
2018
PLANADVISER Micro Plan Survey
Reported by PLANADVISER
| Art by Claire Merchlinsky
Industry Data
Investments
Investments
| Investment Committee for the DC Plan | |||
|---|---|---|---|
| All Micro | <$1MM | $1MM–$5MM | |
| Internal employees only | 22% | 19% | 23% |
| External non-employees only | 3% | 1% | 3% |
| Employees and non-employees | 18% | 8% | 22% |
| Unsure of composition | 1% | 1% | 1% |
| No investment committee | 49% | 59% | 46% |
| Unsure/Don’t know | 7% | 12% | 5% |
| Income-Oriented Products/Services Offered | |||
|---|---|---|---|
| All Micro | <$1MM | $1MM–$5MM | |
| Systematic withdrawal option at retirement | 19% | 15% | 20% |
| In-plan – guaranteed monthly income | 5% | 6% | 5% |
| In-plan – professional managed account service | 10% | 10% | 10% |
| In-plan – no guarantees | 4% | 4% | 4% |
| Out-of-plan – annuity purchase | 2% | 3% | 2% |
| Unsure of income product type | 30% | 28% | 30% |
| No income-oriented products | 45% | 49% | 44% |
Frequency of Formal Review of Investment Options
| All Micro | <$1MM | $1MM–$5MM | |
|---|---|---|---|
| Quarterly | 15% | 12% | 16% |
| Twice a year | 11% | 7% | 12% |
| >Annually | 51% | 49% | 52% |
| Every 1 to 2 years | 6% | 5% | 6% |
| Every 2 to 3 years | 3% | 4% | 3% |
| Every >3 years | 3% | 4% | 3% |
| Never | 10% | 19% | 7% |
| Types of Investment Options Offered | |||
|---|---|---|---|
| All Micro | <$1MM | $1MM–$5MM | |
| Balanced fund(s) | 70% | 61% | 73% |
| Target-date funds | 70% | 58% | 73% |
| Money market fund | 61% | 55% | 63% |
| Target-risk funds6 | 52% | 53% | 52% |
| Stable value fund | 35% | 24% | 39% |
| Professionally managed account service | 32% | 29% | 32% |
| Real estate/REITs7 | 23% | 18% | 25% |
| Socially responsible fund(s) | 10% | 10% | 10% |
| Alternative investments8 | 6% | 6% | 6% |
| Employer stock | 1% | 2% | 1% |
|
6E.g., growth, conservative. 7Real estate investment trusts. 8E.g., hedge funds, private equity. |
|||
| Investment Vehicles Used in DC Plan | |||
|---|---|---|---|
| All Micro | <$1MM | $1MM–$5MM | |
| Mutual funds | 89% | 86% | 90% |
| Separate accounts | 20% | 17% | 21% |
| Collective investment trusts | 7% | 6% | 8% |
| ETFs9 (outside of brokerage windows) | 16% | 12% | 17% |
| Self-directed brokerage window | 10% | 10% | 10% |
| Mutual fund window | 5% | 5% | 5% |
| Other | 6% | 6% | 6% |
| 9Exchange-traded funds | |||
Number of Investment Options Offered
All Micro
24.5
Average
<$1mm
21.8
Average
$1mm – $5mm
25.3
Average
All Micro
21.0
Median
<$1mm
20.0
Median
$1mm – $5mm
22.0
Median
Number of Investment Options Held by Participants
All Micro
6.5
Average
<$1mm
6.5
Average
$1mm – $5mm
6.4
Average
All Micro
5.0
Median
<$1mm
4.0
Median
$1mm – $5mm
5.0
Median