SEI Quick Poll: Fiduciary Manager Usage by Pension Plan Sponsors to Double Over Next 5 Years

Survey Reveals Key Drivers Behind the Trend of Investment Outsourcing

OAKS, PA -- (Marketwire) -- 06/28/12 -- SEI (NASDAQ: SEIC) recently conducted a quick poll of 50 corporate defined benefit plan sponsors to determine their organizations' current and future use of a fiduciary manager and their top reaons for outsourcing the investment management of pension plan assets.

According to the Employee Retirement Income Security Act (ERISA), an investment provider who assumes discretion is considered to be a 3(38) fiduciary manager. Other industry names for this model include investment outsourcing provider or outsourced chief investment officer (OCIO). In contrast, an investment provider who delivers advice only is considered to be an ERISA 3(21) investment advisor. An example of this model would be a traditional investment consultant.

Of the poll participants who said they are not currently using a fiduciary manager, 29 percent said they would likely consider a change to this model within the next five years, potentially more than doubling the use of an outsourced fiduciary manager model by corporate pension plan sponsors by 2017.

"As pension plan management becomes more complex, we are seeing a growing demand in the marketplace for outsourced fiduciary management services," said Kevin Matthews, Vice President and Managing Director, href="http://ctt.marketwire.com/?release=904110id=1761508type=1url=http%3a%2f%2fwww.seic.com%2fenUS%2finstitutional-investors.htm%3fcmpid%3dpr-612-fmqp-gig">SEIs Insitutional Group

. Working with a fiduciary manager allows plan sponsors to allocate various levels of discretion to an investment partner, whether it be manager research, selection and oversight, or the added layer of discretion over asset allocation decisions.