Research Papers

FUSE Research Network and BrightScope, a leading provider of independent financial information and investment research, published their second installment in a series of research reports examining the defined contribution (DC) market. In addition to identifying specific asset class trends in the DC market, the series enable firms to assess where opportunities exist.

This report “DC Product Usage Trends: U.S. Equity Assets” examines the size of U.S. equity assets in the DC plan marketplace as well as trends by capitalization, style, investment strategy and vehicle, manager type (DCIO vs. proprietary), plan size, including top recordkeepers and investment managers.

Based on BrightScope’s most recent data, two-thirds (67%) of active U.S. equity assets are managed by DCIO, or third-party, managers, while the remaining one-third are managed in-house by proprietary asset management units of the recordkeeper. Within the active domestic equity space, third-party Small cap funds have the largest percentage of market share versus proprietary funds with 80% of assets. This is followed by Mid Cap funds at 70%. Externally managed Large Cap mutual funds account for only 63% of the active large cap space, which is by far the lowest among the three market capitalizations.

We are excited to announce the launch of a new report series, DC Product Usage Trends. The series is a partnership between FUSE Research and BrightScope. The series utilizes BrightScope's comprehensive database and our knowledge and experience in the DC space to provide an in-depth look at how various asset classes are positioned in the DC market. The first report in the series has just been released and examines target portfolio products (target date + target risk) Here are some of the trends and topics you will find in this report:

• Size (assets and plans) of target portfolios in the defined contribution plan marketplace
• Growth trends by type of target portfolio
• Target-date and target-risk assets by plan size and market shares by recordkeeping platform
• Growth of target-date and target-risk portfolios through various investment vehicles-mutual funds, collective trusts, and separate accounts
• Top recordkeepers and investment managers of target-date and target-risk portfolios by investment vehicle
• Use of third-party asset managers by recordkeeping platform
• Top third-party managers of target-date and target-risk portfolios by recordkeeping platfrom

The data in this report has been analyzed and presented in an easy to interpret format that will help users evaluate asset class usage trends specific to target portfolio products and identify long-term strategic opportunities. Click here to download more information

BrightScope and Target Date Analytics present the latest edition of Popping the Hood, the most comprehensive and longest running analytical report on target date funds (TDFs) and their fund families. Popping the Hood V analyzes and grades 49 fund families, 41 fund companies, and 420 distinct target date funds. Fund families receive an Overall Score as well as a detailed evaluation in five major categories: Company/Organization, Strategy, Performance, Risk, and Fees.

Popping the Hood V is an independent, buy-side analytical report that can be used by advisors and plan sponsors to complete their Department of Labor requirements to prudently select and monitor their target date funds.

BrightScope and Target Date Analytics present the latest edition of Popping the Hood, the most comprehensive and longest running analytical report on target date funds (TDFs) and their fund families. Popping the Hood IV analyzes, scores and ranks 48 fund families, from 40 different fund companies including 400 distinct target date funds. Fund families receive an Overall Score and Ranking as well as a detailed evaluation in five major categories: Company/Organization, Strategy, Performance, Risk, and Fees.

Popping the Hood IV is an independent, buy-side analytical report that can be used by advisors and plan sponsors to complete their Department of Labor requirements to prudently select and monitor their target date funds.