SAN
FRANCISCO, April 25, 2024 /PRNewswire/ -- Callan, a
leading institutional investment consulting firm, announced today
the results of its 2024 Defined Contribution (DC) Trends
Survey. Now in its 17th year, the survey covers the
key tenets of DC plan management, such as governance, investments,
fees, and plan design. The survey paints a detailed picture of the
challenges and opportunities that are important to DC plan
sponsors.
"Our DC Trends Survey provides a benchmark for sponsors to
evaluate their plans compared to peers, as well as actionable
information to help them improve their plans and outcomes for
participants," said Jamie
McAllister, senior vice president and DC consultant. "This
year's survey shows how certain trends that have only emerged
within the last few years are persisting—trends such as retaining
assets in the plan, increased valuations of indirect fees,
collective trusts prevalence over mutual funds, and more."
Key Takeaways:
- Top areas of focus for DC plan sponsors include plan governance
and process, investment management fees, and administration
fees.
- Fiduciary initiatives in 2023 center on reviewing plan fees,
the investment policy statement, and the investment
structure. These will also be top areas of focus in 2024, with
reviewing plan fees as the priority (74%).
- Most plans offered some sort of retirement income solution to
employees in 2023. Installment payments (78%) and partial
distributions (76%) were the most common.
- There was a meaningful uptick in the prevalence of managed
accounts from 2017: 58% offered managed account services, and 84%
monitor or benchmark these services.
- Financial wellness tools (70%) saw a significant increase in
utilization in 2023 compared to 2017.
- 81% sought to retain assets of retirees, and 61% sought to
retain assets of terminated participants.
Conducted online in late 2023, the survey incorporates responses
from 132 DC plan sponsors, including both Callan clients and other
organizations. Respondents spanned a range of industries—the top
were financial services and government.
Find the summary blog post and survey
here.
About Callan
Callan was founded as an employee-owned investment consulting
firm in 1973. Ever since, we have empowered institutional clients
with creative, customized investment solutions backed by
proprietary research, exclusive data, and ongoing education. Today,
Callan advises clients with more than $3
trillion in total assets, which makes it among the largest
independently owned investment consulting firms in the U.S. Callan
uses a client-focused consulting model to serve pension and defined
contribution plan sponsors, endowments, foundations, independent
investment advisers, investment managers, and other asset
owners. Callan has six offices throughout the U.S. Learn more
at callan.com.
Media Contact:
Elizabeth
Anathan
mediarelations@callan.com
415-274-3020
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SOURCE Callan LLC