Survey Data: Investments & Governance
Investments & Governance
| Policy to Address Fee Equalization† |
|---|
| With adviser | Without adviser |
|---|
| Yes – a policy is in place | 36.0% | 13.1% |
| No – but we plan to implement one in the next 12 months | 0.4% | 0.0% |
| No – but we are currently trying to understand the impact and may develop one in the future | 17.2% | 39.3% |
| No – and we have no plans to research this in the short term | 14.4% | 23.0% |
| Unsure | 32.0% | 24.6% |
| Use of an ERISA Account or Plan Expense Reimbursement Account to Track Revenue-Sharing Credits‡ |
|---|
| With adviser | Without adviser |
|---|
| Yes | 32.3% | 16.4% |
| No | 44.5% | 68.9% |
| Unsure | 23.2% | 14.8% |
| Calculation of Total Fees, From All Sources, Paid to DC Plan Provider or Recordkeeper for the Prior Plan Year |
|---|
| With adviser | Without adviser |
|---|
| Yes – and we externally benchmarked our plan's cost/fees at the same time | 47.2% | 33.3% |
| Yes – and we plan to benchmark our plan's cost/fees in the near future | 6.3% | 6.3% |
| Yes – but we did NOT externally benchmark our plan's cost/fees | 10.6% | 10.8% |
| No – but we intend to calculate total cost/fees in the next 6 months | 2.7% | 0.9% |
| No – but we may do it at some point in the future | 9.4% | 18.9% |
| Unsure | 23.9% | 29.7% |
| Financial or Investment Advice Offered to Participants in Your DC plan |
|---|
| With adviser | Without adviser |
|---|
| Yes - through on-site, one-on-one meetings with a financial planner or adviser outside of the plan | 54.1% | 51.6% |
| Yes - using a 3rd party (i.e., Financial Engines, Morningstar, etc.) independent of our recordkeeper | 44.9% | 40.3% |
| Yes - using proprietary services or tools offered through our recordkeeper | 51.6% | 67.7% |
| Yes - via a different method | 2.7% | 3.2% |
| No - advice is not currently offered to participants | 12.7% | 93.5% |
| Have a Written Investment Policy Statement for DC Plan§ |
|---|
| With adviser | Without adviser |
|---|
| Yes | 67.8% | 37.6% |
| No | 11.0% | 34.7% |
| Unsure | 21.2% | 27.7% |
| Investment Vehicles Used in the DC Plan |
|---|
| With adviser | Without adviser |
|---|
| Mutual funds | 80.9% | 87.8% |
| Separate accounts | 36.3% | 29.3% |
| Collective investment trusts | 24.1% | 17.1% |
| Exchange-traded funds | 8.3% | 7.3% |
| Self-directed brokerage windows | 23.1% | 19.5% |
| Mutual fund windows | 6.1% | 5.7% |
| NONE - do not use any of these investment vehicles | 3.9% | 8.9% |
| Frequency of Formal Review of Investment Options |
|---|
| With adviser | Without adviser |
|---|
| Quarterly | 48.5% | 19.6% |
| Twice per year | 14.2% | 7.8% |
| Annually | 27.6% | 40.7% |
| Less than once per year | 3.4% | 12.2% |
| Unsure | 6.4% | 19.6% |
Footnote:
†Fee equalization, also called fund revenue equalization, credits participants for revenue sharing paid by their investments that exceeds their share of the recordkeeping fee. Conversely, should a fund not pay sufficient revenue sharing to cover the revenue required by the recordkeeper, a participant will have to pay the difference directly from his account assets.
‡Question only asked of respondents who sponsor plans that receive revenue-sharing payments.
§An IPS is a separate document from the Summary Plan Description and outlines procedures for evaluating investment options.
