PLANADVISER - July/August 2018 - 12

plan focus
Recording Investment Changes
Spotlighting industry data from PLANSPONSOR's proprietary research
R
egular review of the plan investment
menu is part of a prudent
fiduciary process-which can
also include the drafting of an investment
policy statement (IPS) and formation
of an investment committee-
although neither is required.
We analyzed sponsor data from the
2017 Defined Contribution (DC) Survey,
looking at plans of various sizes, both
with and without an IPS, to see whether
having one translates to better documentation
of investment changes.
Eighty-nine
percent of plans
with an investment
committee also
have an IPS.
According to the data, plan size has
no impact on, for example, sponsor
confidence when it comes to documenting
investment decisions. The
data by size simply show some gaps-
i.e., in the large and mega markets
between those with and without an
IPS-but no consistent trends. Overall,
however, plan sponsors of all sizes that
have an IPS are more likely (by 38%) to
think they document changes appropriately.
Further,
there
is
a
substantial
correlation
between committee confidence
and the presence of an IPS.
Eighty-nine percent of plans with an
investment committee also have an
IPS. The greatest confidence is found
among plans with both (55%); the least
confidence is found among plans with
neither (37%).
Having an IPS and an investment
committee appears to increase confidence
for plan administrators and
create a better-protected plan. -PA
OVERALL
MICRO
SMALL
Has Investment Committee
89%
Plans
with IPS
11%
Plans
without IPS
Plans Without an Investment Committee or Without One That Thinks
It Appropriately Documents Investment Changes
n Plans with IPS n Plans without IPS
80%
45%
37%
49%
42%
36%
42%
33%
13%
MIDSIZE
LARGE
0%
MEGA
50%
50%
Plan Sponsors That Think They Appropriately Document Investment Changes
n Plans with IPS n Plans without IPS
63%
54%
39%
OVERALL
51%
37%
MICRO
53%
42%
52%
38%
SMALL
MIDSIZE
40%
LARGE
MEGA
52% 52%
Plans With Investment Committee That Thinks It Appropriately
Documents Investment Changes
n Plans with IPS n Plans without IPS
63%
55%
43%
55%
41%
54%
42%
52% 48%
41%
53% 53%
OVERALL
MICRO
SMALL
MIDSIZE
LARGE
MEGA
Has No Investment Committee
36%
Plans
with IPS
Source: 2017 PLANSPONSOR Defined Contribution Survey
64%
Plans
without IPS
12 | planadviser.com july-august 2018

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PLANADVISER - July/August 2018

Table of Contents for the Digital Edition of PLANADVISER - July/August 2018

Speaking Their Language
Stretching the Match
Giving Them a Break
Managed Accounts' Value
Principal Transactions
Statute of Limitations
Prohibited Transaction Relief
PLANADVISER - July/August 2018 - C1
PLANADVISER - July/August 2018 - FC1
PLANADVISER - July/August 2018 - FC2
PLANADVISER - July/August 2018 - C2
PLANADVISER - July/August 2018 - 1
PLANADVISER - July/August 2018 - 2
PLANADVISER - July/August 2018 - 3
PLANADVISER - July/August 2018 - 4
PLANADVISER - July/August 2018 - 5
PLANADVISER - July/August 2018 - 6
PLANADVISER - July/August 2018 - 7
PLANADVISER - July/August 2018 - 8
PLANADVISER - July/August 2018 - 9
PLANADVISER - July/August 2018 - 10
PLANADVISER - July/August 2018 - 11
PLANADVISER - July/August 2018 - 12
PLANADVISER - July/August 2018 - 13
PLANADVISER - July/August 2018 - 14
PLANADVISER - July/August 2018 - 15
PLANADVISER - July/August 2018 - 16
PLANADVISER - July/August 2018 - 17
PLANADVISER - July/August 2018 - 18
PLANADVISER - July/August 2018 - 19
PLANADVISER - July/August 2018 - 20
PLANADVISER - July/August 2018 - 21
PLANADVISER - July/August 2018 - 22
PLANADVISER - July/August 2018 - 23
PLANADVISER - July/August 2018 - 24
PLANADVISER - July/August 2018 - 25
PLANADVISER - July/August 2018 - 26
PLANADVISER - July/August 2018 - 27
PLANADVISER - July/August 2018 - 28
PLANADVISER - July/August 2018 - 29
PLANADVISER - July/August 2018 - 30
PLANADVISER - July/August 2018 - 31
PLANADVISER - July/August 2018 - 32
PLANADVISER - July/August 2018 - 33
PLANADVISER - July/August 2018 - 34
PLANADVISER - July/August 2018 - 35
PLANADVISER - July/August 2018 - 36
PLANADVISER - July/August 2018 - 37
PLANADVISER - July/August 2018 - 38
PLANADVISER - July/August 2018 - 39
PLANADVISER - July/August 2018 - 40
PLANADVISER - July/August 2018 - 41
PLANADVISER - July/August 2018 - 42
PLANADVISER - July/August 2018 - 43
PLANADVISER - July/August 2018 - Speaking Their Language
PLANADVISER - July/August 2018 - 45
PLANADVISER - July/August 2018 - 46
PLANADVISER - July/August 2018 - 47
PLANADVISER - July/August 2018 - Stretching the Match
PLANADVISER - July/August 2018 - 49
PLANADVISER - July/August 2018 - Giving Them a Break
PLANADVISER - July/August 2018 - 51
PLANADVISER - July/August 2018 - Managed Accounts' Value
PLANADVISER - July/August 2018 - 53
PLANADVISER - July/August 2018 - Principal Transactions
PLANADVISER - July/August 2018 - Statute of Limitations
PLANADVISER - July/August 2018 - Prohibited Transaction Relief
PLANADVISER - July/August 2018 - C3
PLANADVISER - July/August 2018 - C4
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