Loan & Distribution Specialist AimPoint Pension
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Compass
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Regional Vice President of Sales The Retirement Plan Company
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Defined Benefit Combo Cash Balance Compliance Consultant Loren D. Stark Company (LDSCO)
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Bates & Company, Inc.
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AimPoint Pension
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How Core Investment Menu Size Impacts Participant Investment Decisions in Defined Contribution Plans
Morningstar Advisor Nov. 12, 2019 "[D]efault-investment acceptance increases by approximately 0.7% for each additional fund that a plan adds to the core investment menu (moving from 10 to 30 funds).... [P]articipants in plans with about 10 funds had an average of 4.4 holdings in their portfolio; participants in plans with around 30 funds had an average of 8.6 holdings.... [I]ncreasing a fund menu from 10 funds to 30 funds, which would result in an average increase in holdings of approximately three funds per participant, would result in an estimated increase of alpha of 11 basis points for those participants self-directing their accounts." |
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