Fundsters hunting for defined contribution investment-only (DC I-O) business may find themselves competing for fewer and fewer spots. That's one of the takeaways from a Reuters article penned by Linda Stern. The wire service notes that, according to the Profit-Sharing/401(k) Council of America (PSCA), in 2010 63.8 percent 401(k) plans changed their lineups in 2010, up by a factor of three from under 20 percent in 2009.

Reuters largely blames the changes on hyper-vigilance over fees.

"A lot of companies are chewing up their programs in advance of the fee disclosures," PSCA president David Wray told Reuters, pointing to new 401(k) fee disclosure regulations slated to take effect next year. "They want everything to be nice and sharp."

HR Investment Consultants' David Huntley, Dimensional Fund Advisors DC chief Tim Kohn and Fidelity's Beth McHugh also weighed in for the article, which offers glimpses of a number of other changes looming for 401(k) plans. 

Edited by: Neil Anderson, Managing Editor


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE