The defined contribution investment-only (DCIO) industry continues to grow, reaching record asset levels despite increasing pressure on fees and revenue models. Target-date funds (TDFs) remain a dominant force, with more plan sponsors considering active management strategies to enhance participant outcomes. 

At the same time, large passive fund managers are introducing competitively priced active funds, creating new market dynamics. A key decision for advisors is knowing when to pull the trigger on a switch to active plans, and a riskier economic environment can be the right opportunity. 

Meanwhile, personalization is becoming a key focus, though legal challenges surrounding managed accounts may slow adoption. Lastly, collective investment trusts (CITs) are gaining ground on mutual funds, with potential legislation poised to expand their availability in 403(b) plans.

Finsum: DCIO is an ongoing process and shouldn’t be treated like a static one-time decision, consider traditional portfolio strategy and customization as opportunities to shift DC investments.