Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Life Health > Life Insurance

Survey: Stability Is In

By Staff Writer

X
Your article was successfully shared with the contacts you provided.

Consultants who serve defined contribution retirement plans now have more interest in bonds and stable-value products.

PIMCO, Newport Beach, Calif., a unit of Allianz S.E., Munich, Germany, is reporting that finding in a summary of results from a recent survey of 32 U.S. defined contribution plan consulting firms.

The firms serve about 1,400 clients with $1.6 trillion in defined contribution plan assets.

PIMCO, known for its focus on selling bonds, says 61% of the consultants are expecting plan sponsors to show more interest in adding Treasury- or government-only money market funds.

About 61% of consultants said they are helping evaluate defined contribution plans’ existing stable-value offerings, by assessing the underlying manager performance and monitoring the market-to-book ratio.

Meanwhile, 35% of the consultants said they will revise “target-date” strategies, which shift assets toward more conservative allocations as participants near retirement age, to be more conservative.

But about 94% of the consultants said they believe target-date strategies will continue to be the most prevalent form of qualified default investment alternative vehicle in defined contribution plans.

About 78% expect defined contribution plan sponsors to consider adding “guaranteed income” products over the next 2 years.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.