SURVEY SPOTLIGHT 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 Balanced fund Professionally managed account Not sure Other 56.5% 42.9% 55.5% 64.4% 75.9% 84.1% 10.7% 10.5% 13.9% 7.8% 9.0% 8.2% 9.9% 5.1% 22.6% 36.4% 19.6% 15.4% 2.4% 1.2% 2.9% 5.1% 6.1% 9.0% 7.1% 1.9% 4.0% 3.4% 6.8% 1.7% If you've selected a target-date fund as your QDIA, what type are you using? All Micro Small Mid Large Mega 11.4% 10.2% 12.4% 12.3% Custom TDF (made up of existing investment options in the plan lineup) Single-manager target-date fund Multi-manager target-date fund Not applicable-use a professionally managed account (participant-level allocation model) as our QDIA Not applicable-use a balanced/ target-risk fund as our QDIA Not applicable-we do not use a TDF for our QDIA How confident are you that: Very confident Your plan's current QDIA is the best option for the majority of employees Your plan's participant education about TDF is effective Employees understand the structure and intent of TDFs Employees are selecting the correct target date for their expected retirement Employees are using TDF as a single, all-inclusive fund 58.8% 51.3% 60.2% 61.5% 67.6% Somewhat confident 30.7% 35.6% 29.2% 30.3% 24.5% Not at all confident 1.1% 0.9% 1.5% 0.4% 1.5% Don't know 9.4% 12.2% 9.1% 7.8% 6.4% 70% 60% 50% 40% 30% 20% 10% 60% 40% 20% 0% 2013 2014 2015 - Target-date fund - Balanced fund - Managed account 2016 2017 6.7% 15.8% 42.3% 28.6% 39.3% 52.1% 61.3% 67.3% 11.6% 11.0% 13.3% 11.9% 12.4% 6.1% 9.6% 15.1% 7.9% 8.8% 10.7% 11.1% 7.3% 4.6% 16.3% 24.4% 15.9% 11.9% 5.7% 4.6% 9.3% 4.2% 3.0% 3.6% z Single-manager TDF z Multi-manager TDF z Custom TDF 50% 40% 30% 20% 10% 0% 2016 2017 2013 2014 2015 2016 2017 - Our current QDIA is the best option - Education about TDFs is effective - Employees select the correct TDF - Employees understand TDF intent - Employees use TDFs as all-inclusive fund CO-SPONSORED RESEARCH