An analysis of white label funds in public pension plans
So called “white label funds” are generically named after a broad asset class and include one or more underlying funds. How prevalent is this labelling in defined contribution plans? How does their presence affect investment behavior?
Using a new database of plan- and participant-level observations from public sector defined contribution retirement plans, the authors record the prevalence of white label funds in DC plan menus and compare the features of menus with and without these funds. At the participant level, they also conduct a preliminary analysis of how white labels affect investment allocations. Accordingly, the study’s results have important implications for fund providers and plan sponsors.
The authors used the Public Retirement Research Lab Database, which includes plan- and participant-level data from 207 public sector plans representing $112 billion in assets and 2.3 million participant accounts.
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