DB pension plan study underscores fund size's influence on investment trends
August 31, 2023
A new U.S. study analyzes the relationship between the structure and size of defined-benefit pension plans, and how they perform.
The study — Scale Economies, Bargaining Power, and Investment Performance: Evidence from Pension Plans — was recently awarded first prize in the International Centre for Pension Management’s 2023 Research Awards. It examines how the scale of defined benefit pension plans affects investment mandates, including for asset allocation, investment mandates and cost in returns.
One trend outlined in the study is that large defined-benefit plans are increasingly making use of “in-house” asset management, which cuts down on fees.
The report also notes that smaller pension plans may face more of a challenge in setting up in-house asset management due to a lack of affordability for fixed costs.
Click on more information to read the full study:
