PLANADVISER - July/August 2019 - 48
investment-oriented
Through the 'Window'
The opportunity to invest beyond the plan's fund lineup
A
sset-allocation funds-be they
target-date, balanced or targetrisk-that
offer ready-made
diversification and professional portfolio
management have attracted a
growing proportion of the deferrals
into U.S. defined contribution (DC)
plans. Vanguard reports that, within
its client base, target-date funds (TDFs)
claimed 57% of new contributions last
year, up from 16% in 2009. Yet, for a
small contingent of employees determined
to chart their own investment
course, TDFs hold less appeal. These
independent-minded investors prefer
to allocate their capital through a
brokerage window offered in their plan
alongside the conventional fund menu.
Notwithstanding the growth of
TDFs, brokerage windows have become
more widely available: The 2019
Defined Contribution Trends Survey
from consultant Callan found that
50% of DC plans offered a brokerage
window feature last year, up from 15%
in 2009. " It's not uncommon for a vocal
group of participants to clamor for a
gold fund or an ESG [environmental,
social and governance] option, and it's
a way for employers to say, 'We hear
you. Through the brokerage window
you can get whatever you want,' while
keeping the number of options in the
plan at a reasonable number, " says
James Veneruso, a senior vice president
at Callan, in Summit, New Jersey.
The idea of a brokerage window is
straightforward enough. Plan sponsors
adopt one, using whatever brokerage
provider is available through their
plan's recordkeeper, and offer it to
participants as an investment election.
Some sponsors
fence off the
amount a participant may devote to
the brokerage option, or the sorts of
investments allowed.
" Within our plans, 22% of sponsors
allow only mutual funds through the
brokerage window, but the remainder
let people buy any security, " notes
Martha King, managing director of
48 | planadviser.com July-August 2019 Art by Mark Wang
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PLANADVISER - July/August 2019
Table of Contents for the Digital Edition of PLANADVISER - July/August 2019
An Array of Models
2019 Recordkeeper Services Survey
Advice for All
Pension Risk Transfer on the Rise
Investment Oversight Partners
Through the 'Window'
Now Who is a Fiduciary?
Venue Clauses
The SEC's Standard on IRA Rollovers
PLANADVISER - July/August 2019 - C1
PLANADVISER - July/August 2019 - FC1
PLANADVISER - July/August 2019 - FC2
PLANADVISER - July/August 2019 - C2
PLANADVISER - July/August 2019 - 1
PLANADVISER - July/August 2019 - 2
PLANADVISER - July/August 2019 - 3
PLANADVISER - July/August 2019 - 4
PLANADVISER - July/August 2019 - 5
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PLANADVISER - July/August 2019 - 21
PLANADVISER - July/August 2019 - 22
PLANADVISER - July/August 2019 - 23
PLANADVISER - July/August 2019 - An Array of Models
PLANADVISER - July/August 2019 - 25
PLANADVISER - July/August 2019 - 26
PLANADVISER - July/August 2019 - 27
PLANADVISER - July/August 2019 - 2019 Recordkeeper Services Survey
PLANADVISER - July/August 2019 - 29
PLANADVISER - July/August 2019 - 30
PLANADVISER - July/August 2019 - 31
PLANADVISER - July/August 2019 - 32
PLANADVISER - July/August 2019 - 33
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PLANADVISER - July/August 2019 - 35
PLANADVISER - July/August 2019 - 36
PLANADVISER - July/August 2019 - 37
PLANADVISER - July/August 2019 - 38
PLANADVISER - July/August 2019 - 39
PLANADVISER - July/August 2019 - Advice for All
PLANADVISER - July/August 2019 - 41
PLANADVISER - July/August 2019 - 42
PLANADVISER - July/August 2019 - 43
PLANADVISER - July/August 2019 - Pension Risk Transfer on the Rise
PLANADVISER - July/August 2019 - 45
PLANADVISER - July/August 2019 - Investment Oversight Partners
PLANADVISER - July/August 2019 - 47
PLANADVISER - July/August 2019 - Through the 'Window'
PLANADVISER - July/August 2019 - 49
PLANADVISER - July/August 2019 - Now Who is a Fiduciary?
PLANADVISER - July/August 2019 - Venue Clauses
PLANADVISER - July/August 2019 - The SEC's Standard on IRA Rollovers
PLANADVISER - July/August 2019 - C3
PLANADVISER - July/August 2019 - C4
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