News & Updates
Study reveals that DC plans revamp investment strategies to cut costs and mitigate risks
June 11, 2024
According to an article by Pensions & Investments, Callan’s latest annual survey of defined contribution (DC) plans found that DC plans are aiming to reduce costs by adjusting their investment strategies.
The survey, reported by Pension + Investments, highlights several key trends:
- Mirror Strategy Growth: 45% of plans now use a mirror approach with both active and passive options, up from 28% in 2022, driven by fee-related litigation concerns.
- Increased Use of CITs: 82% of plans offered collective investment trusts (CITs) last year, reflecting a shift towards lower-cost options over mutual funds.
- Fee Management: Most plans now use explicit fees over revenue-sharing to cover administrative costs, with 78% opting for per-participant fees.
Flexibility in plan management and transparent fee structures are driving these changes.
Click the link below to read the full release from Pensions & Investments:
