With target date funds playing an increasingly important role in the typical DC plan, many investment committees are looking more closely at their core fund menu. This is typically comprised of anywhere from six to 20 individual options and the bulk of the assets have historically resided in these funds. However, if the future lies in the plan’s Qualified Default Investment Alternative (QDIA), it’s reasonable to ask whether we still need a core menu, and if so, how many menus, and how should they be offered to participants?

This paper will first discuss the role of the core menu in DC plans of today and tomorrow. Then it will lay out a three-step plan we advise investment committees to consider as they migrate their asset-class options.

RELATED PAPER:
Q&A: Redesigning your plan’s core menu.


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