Reducing fees was a top priority of defined contribution system managers last year and will continue to be key in 2014, according to a survey by Callan Associates.
The percentage of plans that offered passive funds, which have lower management fees, in 2013 was up to 12.5 percent. The survey of 107 plan managers found that more sponsors offered "active/passive mirror" funds, which include major asset classes of both active and passive funds. The percentage grew from 12 percent in 2012 to 21 percent last year. Fully 24 percent of the managers said they plan to increase such offerings this year.
Other cost-saving measures employed by fund managers included reducing the use of mutual funds and evaluating fees charged by recordkeepers with an aim to renegotiating them.
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