Of large 401(k) plan sponsors, almost 70% have taken action to control market timing in their plans, and an additional 14% plan to address this issue in the near future, according to a CIEBA survey. Also, 85% of sponsors that have already implemented rules have found those measures to be either very or somewhat effective at curbing market timing and excessive trading.
The survey, conducted in May, showed that 25% of plan sponsors that have rules or procedures instituted them within the last year; 33%, within the last six months; 8%, within three months; and 30%, more than a year earlier. The remaining 4% or respondents chose "other."
"This survey clearly demonstrates that sponsors of large plans have taken the issue of market timing in defined contribution plans very seriously," said Gary Glynn, chairman of the Committee on Investment of Employee Benefit Assets and president of the $7 billion U.S. Steel and Carnegie Pension Fund, New York.
Fifty-one CIEBA members with a combined $192.5 billion in defined contribution assets responded to the survey.
