Survey Data: Investments & Governance
Investments & Governance
| Policy to Address Fee Equalization‡ |
|---|
| With adviser | Without adviser* |
|---|
| Yes – a policy is in place | 24.8% | 42.0% |
| No – plan to implement one in the next 12 months | 0.6% | 0.0% |
| No – looking into it/may develop one in the future | 0.8% | 0.9% |
| No – no plans to research this in the short term | 17.9% | 14.3% |
| Unsure | 55.9% | 42.9% |
| Use of an ERISA Account or Plan Expense Reimbursement Account to Track Revenue-Sharing Credits§ |
|---|
| With adviser* | Without adviser* |
|---|
| Yes | 31.6% | 14.3% |
| No | 37.1% | 67.9% |
| Unsure | 31.2% | 17.9% |
| Calculation of Total Fees, From All Sources, Paid to DC Plan Provider or Recordkeeper for the Prior Plan Year |
|---|
| With adviser* | Without adviser* |
|---|
| Yes – externally benchmarked plan cost/fees | 28.6% | 16.0% |
| Yes – plan to benchmark plan cost/fees in the near future | 4.2% | 3.8% |
| Yes – but did not externally benchmark plan cost/fees | 5.3% | 5.3% |
| No – but intend to calculate cost/fees in 6 months | 1.4% | 0.0% |
| No – but we may do it at some point in the future | 4.4% | 6.9% |
| Unsure | 56.0% | 67.9% |
| Financial or Investment Advice Offered to Participants in the Employer's DC plan |
|---|
| With adviser | Without adviser |
|---|
| Yes, one-on-one w/financial adviser outside of the plan | 37.1% | 51.6% |
| Yes - 3rd party independent of our recordkeeper | 44.6% | 72.0% |
| Yes, proprietary services or recordkeeper tools | 62.4% | 63.4% |
| No - advice is not currently offered to participants | 27.5% | 40.8% |
| Other | 1.8% | 0.0% |
| Have a Written Investment Policy Statement for DC Plan¶ |
|---|
| With adviser | Without adviser |
|---|
| Yes | 66.0% | 36.5% |
| No | 12.1% | 38.9% |
| Unsure | 21.9% | 24.6% |
| Investment Vehicles Used in the DC Plan |
|---|
| With adviser | Without adviser |
|---|
| Mutual funds | 78.0% | 87.4% |
| Separate accounts | 41.4% | 24.5% |
| Collective investment trusts | 43.0% | 47.2% |
| Exchange-traded funds | 6.0% | 5.0% |
| Self-directed brokerage windows | 36.7% | 47.8% |
| Mutual fund windows | 11.9% | 12.6% |
| Professionally Managed Account Service (for Participants) | 47.7% | 45.3% |
| NONE - do not use any of these investment vehicles | 2.0% | 4.2% |
| Frequency of Formal Review of Investment Options |
|---|
| With adviser* | Without adviser |
|---|
| Quarterly | 48.5% | 15.9% |
| Twice per year | 14.8% | 7.4% |
| Annually | 29.0% | 36.8% |
| Less than once per year | 2.3% | 15.9% |
| Unsure | 5.3% | 24.0% |
Footnote:
*Numbers do not add up to 100% due to rounding errors
‡Fee equalization, also called fund revenue equalization, credits participants for revenue sharing paid by their investments that exceeds their share of the recordkeeping fee. Conversely, should a fund not pay sufficient revenue sharing to cover the revenue required by the recordkeeper, a participant will have to pay the difference directly from his account assets.
§Question only asked of respondents who sponsor plans that receive revenue-sharing payments.
¶An IPS is a separate document from the Summary Plan Description and outlines procedures for evaluating investment options.
