A recent survey indicates that while performance is a factor, it’s not the top factor motivating fund changes by plan sponsors. But is that your experience?
The Cogent Reports Retirement Planscape report notes that in instances where plan sponsors say they intend to drop or reduce the number of investment options provided by specific investment managers, the most common reason – for the second year in a row – was the desire to reduce fees/expenses, though “Large-Mega” plan sponsors are more likely than their peers with smaller plans to drop a manager due to asset class risk attributes no longer meeting requirements (26%) or to switch from an active manager to a passive manager (22%).
The research also found a “significant increase” in the percentage of plan sponsors who would drop an investment manager because of negative media perception, driven by respondents in the Micro plan segment.
But that research surveyed plan sponsors, not necessarily the one(s) you work with. This week, we’d like to know: What’s driving investment menu changes among your plan sponsor clients?
You can respond to this week’s NAPA Net reader poll at https://www.research.net/r/CQDL6DR.
And we’ll, of course, wrap it all up for you on Friday!
