Why StoryLine as the Qualified Default Investment Alternative (QDIA)
More appropriate equity allocations
Based on Stadion’s analysis, employees defaulted into Stadion’s StoryLine managed account can have more age-appropriate equity allocations than their colleagues who are do-it-yourself (DIY) investors and make their own investment decisions.1 With StoryLine, employees receive a personalized allocation without requiring engagement.
Allocations to equities maybe wide-ranging despite employees’ proximity to retirement. These allocations often fall outside of an ge-appropriate range.
Defaulted StoryLine investors
Employees in StoryLine receive a personalized allocation based on multiple data points, which may provide them with amore appropriate equity allocation.
Impact of a professionally managed, personalized QDIA solution
Equity allocation comparison between StoryLine investors and DIY investors1,3
Contact your Stadion representative or email us at firstname.lastname@example.org to request a report.
Stadion’s managed account research
In an effort to identify trends in the managed account marketplace Stadion analyzed plans where StoryLine, Stadion’s managed account service, is available as the QDIA at recordkeepers who make current and prospective Stadion participant data available. As such, certain Stadion defaulted participants and all Stadion hired participants were not represented in the research.
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1DIY investors are prospective Stadion clients whose employers have made Stadion’s managed account services available as QDIA.
2The S&P Target Date Index glidepath was created by Stadion by combining the equity allocations of S&P TargetDate Index vintages. To create a smooth glide path, Stadion assumes the difference in equity allocation percentages between target date vintages will adjust equally on an average basis each year. For example, if there is a 10% equity allocation difference between a 2030 vintage and 2040 vintage, the equity allocation will adjust1% each year. The S&P Target Date Index Series is composed of eleven multi-asset class indices, each corresponding to a particular target retirement date. The asset class mix for each index is determined once a year through a process designed to reﬂect the overall investment opportunity of the represented markets. Each index is fully investable, with varying levels of exposure to equities and ﬁxed income. To create its target date benchmark, S&P Indices conducts an annual survey of target date funds each year in April using:(i) Funds are identiﬁed as Target Date funds from the Morningstar or Lipper databases and sorted by asset size. Fund families not meeting the minimum asset threshold of US $100 million are removed. (ii) Fund holdings are drawn from the latest period available using commercial databases and the SEC’s Edgar web site. (iii) Asset class exposures for the funds are derived by mapping the fund holdings to their corresponding asset class category. It is not possible to invest directly in indexes which areunmanaged and do not incur fees. Each target date allocation is created and retired according to a pre-determined schedule related to the relevant target date.
3Data for the DIY Investor graphic, Defaulted StoryLine investor graphic and combined Impact graphic were derived from approximately 1,200retirement plans offering StoryLine as the QDIA to over 33,000 participants. The participants represented have a retirement account balance greater than $1,000 and are between the ages of 25-85. Equity allocation percentages for DIY Investor and Defaulted StoryLine investor reﬂect the weighted average equity exposure for total account assets derived from monthly fund holdings reported to Morningstar. Actual equity allocation percentages will vary based on market conditions. The graphics only represent plan participants from record keepers who make current and prospective Stadion participant data available. As such, certain Stadion defaulted participants and all Stadion hired participants are not represented in the graphics. Prospective Stadion participants are participants who select their own investments. Stadion data as of March 31, 2023.
3Pollﬁsh survey based on 1,000 employees in the United States aged 45-65 who had access to a workplace retirement plan and had an account balance of at least $1. Survey commissioned by Smart USA, Stadion’s parent company, For further information visit https://visit.smart.co/pollﬁsh.
There is no guarantee of the future performance of any Stadion account. Material has been derived form sources considered to be reliable, but the accuracy and completeness cannot be guaranteed. Stadion Money Management, LLC (“Stadion”)is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about Stadion’s investment advisory services and fees can be found in its Form ADV Part 2, which is available upon request. ©2023 Stadion Money Management, LLC. All rights reserved. Stadion and the Stadion S are registered service marks of Stadion Money Management, LLC. StoryLine is a service mark of Stadion Money Management, LLC.