Half of DC Plan Participants Invest in Asset Allocation Funds

May 18, 2011 (PLANSPONSOR.com) - In research recently completed by Spectrem Group with defined contribution plan participants about half (50%) of the participants had some or all of their defined contribution assets invested in asset allocation funds, up from 36% in 2008.

A larger portion of participants use the asset allocation funds for some of their money, from 13% in 2008 to 24% today.  

About 72% of investors had some form of asset allocation fund offered within their plan.  While some had Lifestyle Funds, many had Target Date Funds, but the largest percentage (34%) had both types of funds available in the plan.  

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Spectrem said the popularity of asset allocation funds is expected to increase as investors become increasingly comfortable with relying on the investment expertise of providers.  

More information is here.

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