PLANSPONSOR - October-November 2022 - 16

INVESTMENTS |COVER STORY
DEEP
Exploring TDFs,
managed accounts
and QDIAs to see
what fiduciaries
should know now
Q
16 PLANSPONSOR.COM October - November 2022
Art by Alessandro Gottardo
ualified default investment alternatives provide retirement plan sponsors with a safe
harbor for investing plan participants' contributions in the absence of the participant's
direction. Besides enabling this relative freedom, such investment options also reduce
the potential for fiduciary liability.
QDIAs were authorized by the Pension Protection Act of 2006, and final regulations were
issued by the Department of Labor in 2007. By allowing sponsors to thus default participants'
earnings and avoid liability, experts say, QDIAs removed an impediment to more widespread
use of automatic enrollment in defined contribution plans.
The final regulations approved the following three long-term QDIAs: A product with a mix
DIVE
of investments that takes into account the individual's age or retirement date-e.g., a target-date
fund; an investment service that allocates contributions among existing plan options to provide
an asset mix, similarly factoring in the individual's age or retirement date-e.g., a professionally
managed account; or a balanced fund.
Since the introduction of QDIAs, target-date funds have become the most popular choice.
In 2021, total assets in this strategy grew to a record $3.27 trillion thanks to the increase
in collective investment trusts and a general rebound in investor contributions following
2020's pandemic-driven slump, according to Morningstar's " 2022 Target-Date Strategies
Landscape " report.
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PLANSPONSOR - October-November 2022

Table of Contents for the Digital Edition of PLANSPONSOR - October-November 2022

INSIGHTS
INDUSTRY ANALYSIS
RULES & REGULATIONS
UPFRONT
Deep Dive
Managing Volatility
New Solutions
Participant ESG Demands
Good Practices
FIDUCIARY FORUM
INSIDE ANGLE
PLAN PROFILE
PLANSPONSOR - October-November 2022 - Cover1
PLANSPONSOR - October-November 2022 - Cover2
PLANSPONSOR - October-November 2022 - 1
PLANSPONSOR - October-November 2022 - INSIGHTS
PLANSPONSOR - October-November 2022 - 3
PLANSPONSOR - October-November 2022 - RULES & REGULATIONS
PLANSPONSOR - October-November 2022 - 5
PLANSPONSOR - October-November 2022 - 6
PLANSPONSOR - October-November 2022 - 7
PLANSPONSOR - October-November 2022 - 8
PLANSPONSOR - October-November 2022 - 9
PLANSPONSOR - October-November 2022 - UPFRONT
PLANSPONSOR - October-November 2022 - 11
PLANSPONSOR - October-November 2022 - 12
PLANSPONSOR - October-November 2022 - 13
PLANSPONSOR - October-November 2022 - 14
PLANSPONSOR - October-November 2022 - 15
PLANSPONSOR - October-November 2022 - Deep Dive
PLANSPONSOR - October-November 2022 - 17
PLANSPONSOR - October-November 2022 - 18
PLANSPONSOR - October-November 2022 - 19
PLANSPONSOR - October-November 2022 - 20
PLANSPONSOR - October-November 2022 - 21
PLANSPONSOR - October-November 2022 - 22
PLANSPONSOR - October-November 2022 - 23
PLANSPONSOR - October-November 2022 - 24
PLANSPONSOR - October-November 2022 - 25
PLANSPONSOR - October-November 2022 - Managing Volatility
PLANSPONSOR - October-November 2022 - 27
PLANSPONSOR - October-November 2022 - 28
PLANSPONSOR - October-November 2022 - 29
PLANSPONSOR - October-November 2022 - New Solutions
PLANSPONSOR - October-November 2022 - 31
PLANSPONSOR - October-November 2022 - 32
PLANSPONSOR - October-November 2022 - 33
PLANSPONSOR - October-November 2022 - Participant ESG Demands
PLANSPONSOR - October-November 2022 - 35
PLANSPONSOR - October-November 2022 - Good Practices
PLANSPONSOR - October-November 2022 - 37
PLANSPONSOR - October-November 2022 - FIDUCIARY FORUM
PLANSPONSOR - October-November 2022 - INSIDE ANGLE
PLANSPONSOR - October-November 2022 - PLAN PROFILE
PLANSPONSOR - October-November 2022 - Cover3
PLANSPONSOR - October-November 2022 - Cover4
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