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 63.0% 48.2% 61.9% 73.3% 78.9% 90.9% 10.4% 11.5% 12.5% 6.7% 7.5% 6.9% 17.1% 30.8% 15.1% 2.9% 2.0% 3.6% 7.8% 4.6% 8.9% 5.3% 7.2% 9.4% 3.9% 0.6% 3.5% 3.5% 1.4% 0.7% If you've selected a target-date fund as your QDIA, what type are you using? All Micro Small Mid Large Mega 7.1% 13.8% 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? Note: Totals may not add to 100% due to rounding. 56.3% 31.1% 25.3% 31.8% 25.6% Somewhat confident 34.1% 48.1% 51.6% 46.4% 44.9% Not at all confident 1.1% 6.1% 9.3% 5.8% 9.8% Don't know 8.5% 14.8% 13.8% 16.0% 19.7% 70% 60% 50% 40% 30% 20% 10% 8.7% 4.0% 13.9% 60% 40% 20% 0% 2014 2015 2016 - Target-date fund - Balanced fund - Managed account 2017 2018 0.0% 18.2% 47.4% 42.9% 41.4% 68.0% 76.5% 36.4% 7.1% 15.5% 24.0% 23.5% 9.1% 8.7% 12.5% 10.3% 8.7% 10.7% 12.1% 12.7% 21.4% 10.3% 0.0% 8.0% 4.0% 0.0% 18.2% 0.0% 0.0% 5.9% 18.2% 50% 40% 30% 20% 10% 0% 2017 z Custom TDF z Single-manager TDF z Multi-manager TDF 2018 2014 2015 2016 2017 2018 - Our current QDIA is the best option - Education about TDFs is effective - Employees understand TDF intent - Employees select the correct TDF - Employees use TDFs as all-inclusive fund CO-SPONSORED RESEARCH