NEPC’s Bill Ryan was recently featured in an article by Pensions & Investments for his insights on manager turnover in large cap growth funds. View excerpts below or the full article on the Pensions and Investments site here.
Well over 100 U.S. corporate 401(k) plans made changes to their investment option lineups in 2023. That’s nearly double the number that disclosed changes the previous year, with 401(k) plans in 2023 saying changes to active domestic large-cap growth equity options dominated
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There has also been turnover among portfolio managers of active large-cap growth funds, with a number of them choosing to retire following the COVID pandemic, said Bill Ryan, partner and head of defined contribution solutions at investment consultant NEPC. Those departures just happened to occur while there was this large dispersion in returns.
“(This) creates triggers in investment policy statements,” said Ryan, “so if you have key staff changes and performance challenges, you hit two things that people look at. So while the performance in isolation might not have triggered a change, the portfolio manager changed and the performance is down.”
Click here to continue reading the full Pensions & Investments article.