NEPC’s Emma O’Brien was quoted in a recent Pensions & Investments article to discuss how fewer contributions are leading many providers to take another look at their core menu options. View the article on Pensions & Investments’ site here.
Providers of mutual funds and target-date funds for defined contribution plans saw their assets under management rise during the year ended June 30, thanks to the market recovery that allowed them to partially make up for the previous year’s losses.
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Emma O’Brien, senior consultant at NEPC, said in a phone interview that about 63% of participant contributions go into target-date funds, and that has led some of their clients to take another look at their core menu options because they’re seeing so many fewer contributions than in the past.
“They have been offering a complementary menu of active and passive options as core options,” said O’Brien. “We’re taking a look at certain asset classes, whether offering an active option, a passive option or both.”
One such asset class is large-cap equities, where offering only a passive option would be the way to go since active managers have struggled to add value, she said.
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