PLANSPONSOR - November/December 2017 - 8

Plan Analysis
A
Highlights of BrightScope's proprietary research
Proprietary Fund Usage
n employer has the option to
choose its recordkeepers' proprietary
mutual funds, collective
investment trusts (CITs) or separate
accounts for the company plan's investment
lineup. A proprietary investment
is one bearing the same name as the
recordkeeper or third-party administrator
(TPA). As is true when choosing any
fund, selecting a proprietary fund must
be in the best interest of the participants
and be documented as such.
In 2014, according to data from
BrightScope-like PLANSPONSOR, a
Strategic Insight company-65.4% of
401(k) plans included proprietary funds
in their investment lineup, and the assets
in those funds accounted for 26.1% of
all plan assets. Larger plans were the
most likely to offer proprietary funds,
although this tendency was less evident
in the largest plans, which included
proprietary funds at about the same rate
as the smallest plans did.
While plans with $250 million
to $500 million in plan assets were
significantly more apt to offer proprietary
funds than were the smallest plans,
participant investment in proprietary
funds was similar in plans of both sizes.
For all plan-size groups with less than
$1 billion in assets, proprietary funds
accounted for 32% through 38% of plan
assets. Participants in plans worth over
$1 billion held a lower share of their
assets (18.9%) in proprietary funds. A
similar pattern emerges when the variation
across plans by number of plan
participants is analyzed. -PS
Proprietary Fund Use Varies by Plan Size
Plan assets invested in proprietary funds and the percentage of plans offering proprietary funds*, ...
... By asset sizes
n % of plan assets n % of plans
65.4
34.6
26.1
All plans
$1mm - $10mm
>$10mm -
$50mm
... By number of participants
n % of plan assets n % of plans
65.4
36.2
26.1
All plans
<100
100 - 499
500 - 999
1,000 - 4,999
62.1
35.4
65.3
39.0
72.3
63.0
34.6
27.9
19.1
5,000 - 9,999
≥10,000
*Proprietary funds are the investment products of the recordkeeping financial services firm. Funds include mutual funds,
collective investment trusts, separate accounts and other pooled investment products.
Note: The sample set is 26,167 plans with $2.9 trillion in assets. The audited 401(k) filings generally include plans with
100 participants or more. Plans with fewer than four investment options, more than 100 investment options or less than
$1 million in plan assets are excluded from the audited 401(k) filings.
Source: BrightScope Defined Contribution Plan Database
73.3
70.6
>$50mm -
$100mm
>$100mm -
$250mm
>$250mm -
$500mm
68.5
59.1
35.9
37.7
36.0
36.3
32.8
18.9
>$500mm -
$1b
>$1b
74.6
75.0
76.3
73.3
60.6
8 PLANSPONSOR.com November-December 2017

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PLANSPONSOR - November/December 2017

Table of Contents for the Digital Edition of PLANSPONSOR - November/December 2017

Seeking Value
2017 DC Survey: Plan Benchmarking
2017 Research Year in Review
Owning a Piece of the Firm
Breaking Up With a Fund
Reporting Requirements
PLANSPONSOR - November/December 2017 - Cover1
PLANSPONSOR - November/December 2017 - Cover2
PLANSPONSOR - November/December 2017 - 1
PLANSPONSOR - November/December 2017 - 2
PLANSPONSOR - November/December 2017 - 3
PLANSPONSOR - November/December 2017 - 4
PLANSPONSOR - November/December 2017 - 5
PLANSPONSOR - November/December 2017 - 6
PLANSPONSOR - November/December 2017 - 7
PLANSPONSOR - November/December 2017 - 8
PLANSPONSOR - November/December 2017 - 9
PLANSPONSOR - November/December 2017 - 10
PLANSPONSOR - November/December 2017 - 11
PLANSPONSOR - November/December 2017 - 12
PLANSPONSOR - November/December 2017 - 13
PLANSPONSOR - November/December 2017 - 14
PLANSPONSOR - November/December 2017 - 15
PLANSPONSOR - November/December 2017 - 16
PLANSPONSOR - November/December 2017 - 17
PLANSPONSOR - November/December 2017 - 18
PLANSPONSOR - November/December 2017 - 19
PLANSPONSOR - November/December 2017 - 20
PLANSPONSOR - November/December 2017 - 21
PLANSPONSOR - November/December 2017 - Seeking Value
PLANSPONSOR - November/December 2017 - 23
PLANSPONSOR - November/December 2017 - 24
PLANSPONSOR - November/December 2017 - 25
PLANSPONSOR - November/December 2017 - 26
PLANSPONSOR - November/December 2017 - 27
PLANSPONSOR - November/December 2017 - 28
PLANSPONSOR - November/December 2017 - 29
PLANSPONSOR - November/December 2017 - 2017 DC Survey: Plan Benchmarking
PLANSPONSOR - November/December 2017 - 31
PLANSPONSOR - November/December 2017 - 32
PLANSPONSOR - November/December 2017 - 33
PLANSPONSOR - November/December 2017 - 34
PLANSPONSOR - November/December 2017 - 35
PLANSPONSOR - November/December 2017 - 36
PLANSPONSOR - November/December 2017 - 37
PLANSPONSOR - November/December 2017 - 38
PLANSPONSOR - November/December 2017 - 39
PLANSPONSOR - November/December 2017 - 40
PLANSPONSOR - November/December 2017 - 41
PLANSPONSOR - November/December 2017 - 42
PLANSPONSOR - November/December 2017 - 43
PLANSPONSOR - November/December 2017 - 44
PLANSPONSOR - November/December 2017 - 45
PLANSPONSOR - November/December 2017 - 2017 Research Year in Review
PLANSPONSOR - November/December 2017 - 47
PLANSPONSOR - November/December 2017 - 48
PLANSPONSOR - November/December 2017 - 49
PLANSPONSOR - November/December 2017 - 50
PLANSPONSOR - November/December 2017 - 51
PLANSPONSOR - November/December 2017 - 52
PLANSPONSOR - November/December 2017 - 53
PLANSPONSOR - November/December 2017 - Owning a Piece of the Firm
PLANSPONSOR - November/December 2017 - 55
PLANSPONSOR - November/December 2017 - 56
PLANSPONSOR - November/December 2017 - 57
PLANSPONSOR - November/December 2017 - Breaking Up With a Fund
PLANSPONSOR - November/December 2017 - 59
PLANSPONSOR - November/December 2017 - Reporting Requirements
PLANSPONSOR - November/December 2017 - 61
PLANSPONSOR - November/December 2017 - 62
PLANSPONSOR - November/December 2017 - 63
PLANSPONSOR - November/December 2017 - 64
PLANSPONSOR - November/December 2017 - Cover3
PLANSPONSOR - November/December 2017 - Cover4
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