NEPC’s 20th Annual DC Plan Trends & Fee Survey was recently cited in Ignites in an article examining the growing number of defined contribution plans eliminating managed account programs amid heightened fee sensitivity and fiduciary scrutiny. Read the full article on Ignites’ website for deeper insight into the data and its implications for plan sponsors, asset managers, and recordkeepers.
Managed account programs are losing favor among some retirement plan sponsors, a recent survey found.
. . .
Some 14% of defined contribution plans surveyed in December by investment consulting firm NEPC reported that they had eliminated their managed account programs since late 2023.
“These decisions reflect more formal fiduciary reviews as [defined contribution] governance has matured, along with heightened fee sensitivity and closer evaluation of participant engagement and personalization,” NEPC wrote in a summary of its findings.
. . .
In addition, fewer plans are adding managed accounts, Mikaylee O’Connor, leader of NEPC’s DC practice, stated in an email. Growth in adoption of managed accounts has “moderated as plan sponsors increasingly scrutinize utilization, fees and participant outcomes when evaluating whether to add or retain these services,” O’Connor said.