The defined contribution plans sponsored by companies bearing the name of President-elect Donald J. Trump are outliers from the norm when it comes to their largest allocations.
Three 401(k) plans examined by Pensions & Investments feature unusually large weightings to specific offerings. Two plans hold 54% and 78%, respectively, in domestic equity, while a third, the smallest, holds 66% in target-date funds.
According to P&I data, the average asset allocation for U.S. corporate defined contribution plans in the largest 1,000 retirement plans as of Sept. 30, 2015, was: 46.5% domestic stock (including employer stock), 17.2% target-date funds, 13.1% stable value, 7.4% fixed income, 7.3% international equity, 6.1% other, 1.9% cash, 0.4% inflation-protected securities and 0.1% annuities.
Officials at the plans could not be reached by press time; consultants contacted for this article declined to comment.
The largest of the three examined, the Trump Payroll Corp. 401(k)/Profit Sharing Plan, New York, had $29.2 million in assets and 1,805 participants as of Dec. 31, according to the most recent Form 5500 filing. It represents employees in 35 different Trump entities, including Trump Restaurants LLC and Trump National Golf Club LLC.
Fidelity Investments, the record keeper, offers a target-date fund lineup that accounts for 31.4% of total plan assets as of Dec. 31. Of the 26 investment options offered by the plan, Fidelity's Blue Chip Growth Fund held the most assets at $3.05 million, or 10.4% of the total plan assets.
Fidelity Investments manages 21 of the 26 investment options and also offers a self-directed brokerage account and target-date fund lineup.
The lineup itself is dominated by domestic equity, which accounts for 53.9% of plan assets, followed by domestic fixed income at 12.7%, international equity, 0.4%, and other, 1.7%.
The plan's assets have almost tripled since Dec. 31, 2009, the date of the earliest currently available Form 5500 filing, when the plan had $10.3 million in assets and 944 participants from 21 Trump companies. Fidelity Investments was the record keeper at that time and offered 16 investment options, all managed by Fidelity.
Since then, the plan has added domestic equity funds managed by Goldman Sachs Asset Management, MFS Investment Management and Wells Fargo Asset Management, an international equity fund managed by Harbor Capital Advisors and a domestic fixed-income fund managed by Pacific Investment Management Co. All others added are managed by Fidelity.
The next largest of the plans, the Trump International Hotel and Tower Condominium 401(k) Employee Savings Plan, New York, had $5.6 million in assets and 151 participants as of Dec. 31, according to the most recent Form 5500 filing.
Of the plan's 24 investment options, the Janus Twenty Fund, Janus Capital Group's active domestic large-cap growth equity fund, had by far the highest percentage of assets, with $1.647 million, or 29.5% of the total.
The dominance of the Janus Twenty Fund in the plan's lineup has been fairly steady; six years earlier the Janus Twenty Fund accounted for 28.9% of the plan's then $3 million in assets, according to the company's earliest available Form 5500 filing.
Nationwide Financial's S&P 500 index fund had the second-highest amount of assets, at $562,144, or 10.1% of total assets as of Dec. 31.
The asset allocation as of Dec. 31 was: 78.1% domestic equity, 11.5% domestic fixed income, 7.1% international equity, 2% high yield fixed income and 1.3% global fixed income.
Overall, the 401(k) plan has shown a significant amount of stability since the end of 2009, when the plan also had 24 investment options. Fidelity Investments has been the plan's record keeper during the entire period and only two investment options have been removed and two added to the lineup.
Meanwhile, Trump International Waikiki, Honolulu, which sponsors the Trump International Waikiki 401(k) Plan, had $4.4 million in assets and 343 participants as of Dec. 31, according to the company's most recent Form 5500 filing. The plan was established on Dec. 21, 2009.
In 2015, the company hired ADP as its new record keeper, replacing Fidelity Investments.
Since then the investment options have been pared to 19, including a target-date lineup, from 36 options, including a target-date lineup.
Almost two-thirds of the plan's assets, 65.8%, were in a target-date fund lineup managed by State Street Global Advisors. The rest of the asset mix was: 29% domestic equity, 3.1% domestic fixed income, 1.4% international equity and 0.7% real estate.
Of the other 18 investment options referenced in the company's most recent Form 5500 filing, the four funds with the most assets are all managed by Fidelity Investments and account for another 21.4% of the 401(k) plan's assets.
The four funds are Fidelity Investments' Blue Chip Growth fund, with $333,801; Fidelity's OTC portfolio, $268,700; Fidelity Value fund, $200,480; and Fidelity Large Cap Stock fund, $110,600.
Before the change in record keeper, all options and the target-date fund series were managed by Fidelity. The target-date lineup accounted for 59.5% of the plan's total assets. Fidelity's Blue Chip Growth fund accounted for $183,470, or 5.6% of the total plan's assets.
