SURvey SPOTLIgh T
Micro=<$5MM; Small=$5MM-$50MM; Mid=>$50MM-$200MM; Large=>$200MM-$1B; Mega=>$1B
Which of the following is the best QDIA option for your employee population?
All
Micro
Small
Mid
Large
Mega
Target-date fund
44.8%
28.1%
46.3%
62.0%
72.2%
72.6%
Target-risk fund
5.3%
4.6%
5.1%
6.7%
6.3%
6.0%
Balanced fund
14.8%
15.9%
16.8%
13.3%
10.1%
5.6%
Managed account
7.0%
9.6%
6.6%
4.2%
1.8%
5.6%
Not sure
25.0%
39.0%
22.0%
9.9%
6.5%
6.8%
Target-date funds continue to
be considered the best QDIA
option for the majority of
plan participants, especially
among large and mega plan
sponsors. Balanced funds
are the second choice, and
one-quarter of all plans aren’t
sure which product is the
best QDIA option.
Other
3.2%
2.8%
3.3%
3.9%
3.1%
3.4%
Which type of QDIA option do you think would be the best choice for:
Balanced fund
Lower
Fees
Investment
Transparency
51.5% 48.0%
Best
Overall
Performance
Fiduciary
Risk
Management
37.5% 37.5%
Correct
Usage by
Participants
31.2%
Target-date fund
40.2%
32.7%
38.1%
42.7%
56.0%
Target-risk fund
8.3%
19.3%
24.3%
19.8%
12.8%
Balanced funds are seen
by the majority of plan
sponsors as the best QDIA
option in terms of lowest
fees and investment
transparency; however,
target-date funds are
considered best for fiduciary
risk management and correct
usage by participants.
If your plan lineup includes a QDIA, is its selection and monitoring specifically included in your investment
policy statement (IPS)?
All
Micro
Small
Mid
Large
Mega
Yes
69.6%
64.5%
69.6%
75.0%
71.0%
72.9%
No
30.4%
35.5%
30.4%
25.0%
29.0%
27.1%
About 70% of plans that
have both a QDIA and an
investment policy statement
include QDIA selection and
monitoring in their IPS.
If you have an investment policy statement (IPS), does it specifically cover target-date funds and their
underlying funds?
Yes
All
61.6%
Micro
60.7%
Small
60.2%
Mid
61.5%
Large
62.6%
Mega
71.2%
No
38.4%
39.3%
39.8%
38.5%
37.4%
28.8%
Nearly 40% of plans that have
both target-date funds and an
IPS do not include language
in the IPS pertaining to
target-date funds and their
underlying funds.
CO-SPONSORED RESEARCH
