The market for investment-only defined contribution plans is expected to grow to 60% of the DC plan market by 2017, according to a new report.
Strategic Insight, New York, published this finding in a summary of results from a new survey of investment-only and proprietary defined contribution plan assets. This second report of Strategic Insight’s new DC Research Suite, DC Market Sizing and Outlook 2012, provides defined contribution market sizing and forecasts by plan type, plan size, and vehicle structure, plus findings from a DCIO manager survey fielded in April 2012.
More than 30 firms participated in the survey fielded by Planadvisor (an affiliate of Strategic Insight), representing more than $1.3 trillion in investment-only assets.
Investment-only DC plan assets, the study says, will grow to $3.5 trillion by 2017, a 52% rise from the $2.3 trillion recorded at year-end 2011. The 2017 total also represents an 8% growth in market share relative to year-end 2011, when investment-only plans stood at 52% of all DC plan assets; the balance of plans comprise proprietary plans.
Investment-only assets, the study states, refer to defined contribution plan assets managed by an asset management firm. Proprietary plan refer to those run by a record-keeper or administrator.