Sponsor stock allocation varies among large DC plans

For large defined contribution plans (at least $10 billion in assets), participant holdings of the sponsors’ equity had a wide range, based on those that responded to Pensions & Investments‘ annual top 1,000 survey of the largest U.S. retirement plans. United Airlines Holdings’ DC participants allocated less than 1% of their assets to the stock, while Costco Wholesale had nearly 48% invested in company shares.

Based on those with an allocation of more than 10%. Target, Bank of America and Costco Wholesale had 12-month returns trailing the S&P 500’s -3.5%. Northrup Grumman, Honeywell International and Caterpillar exceeded the index’s return.

Over 10 years, all bested the S&P 500’s 12.1% annualized return.