NEPC’s Bill Ryan and Alison Lonstein were quoted in a recent WealthManagement.com article to discuss our 2022 DC Plan Trends and Fee survey results which include the growth of TDFs and an increase in usage of OCIO. View the announcement on WealthManagement.com’s site here.
While the retail and institutional market both live in the same worlds, sometimes it seems like they are from different universes. The recently released 17th annual NEPC 2022 DC Plan Trends & Fees Survey, while not shocking, provides insights into what is really happening with larger DC plans, which may portend changes in the retail DC market.
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“There were some myth busters in the NEPC Survey and some confirmations including:
- TDFs continue to gain traction now at 46% of plan assets garnering 70% of new contributions. Bill Ryan, NEPC’s head of DC solutions, predicts that most assets will be in target dates in three to five years.
- Participants hold an average of 2.5 funds because of the proliferation of TDFs with 66% active. Lineups are being streamlined according to Allison Lonstein, principal at NEPC, who is surprised that indexing has not grown more in some sectors like large cap value.
- Though there was a 94% increase in usage of OCIO, just 10% of clients leverage it overseeing 9% of assets. Lonstein anticipates growth with 25% of prospects interested. Ironically, Ryan sees this is a trend moving up market.”
Read the full article on WealthManagement.com’s website here.