An overwhelming majority of big-ticket retirement plans are moving against market timing, and the ones who have not moved are preparing to do so, according to a survey by the Committee on Investment of Employee Benefit Assets, a division of the Association for Financial Professionals.
While 69% of large plan sponsors have already installed anti-market timing plans, another 14% said plans to curb the quick, in-and-out, trades are in the works. Fifty-one plans, with combined assets of $192.5 billion, responded to the survey.
One of the most telling signs of plan sponsor action was in the timing of their market-timing prevention plans. According to the survey, almost a third of the plans (30%) put in their market timing codes more than a year ago, even before the scandal erupted.
"This survey clearly demonstrates that sponsors of large plans have taken the issue of market timing in defined contribution plans very seriously," said CIEBA Chairman Gary Glynn, who doubles as president of the U.S. Steel and Carnegie Pension Fund.