White label funds in defined contribution plans: an introduction

January 2022

According to a recent survey, (1) over 30% of plans with over $1 billion in participant assets had adopted white label structures. Another survey estimates that $750 billion to $1 trillion of participant assets are invested in white label funds. (2) Many recordkeepers have developed infrastructure to accommodate white label funds, which has benefited plan sponsors looking to adopt this structure. The scale necessary to manage white label funds has come down significantly, making it feasible for plans above $250 million to consider the approach.

Why are plan sponsors increasingly implementing white label solutions in their defined contribution plans? What are the challenges associated with white label options? In the following pages, we provide an overview of white label funds and address the advantages and disadvantages, as well as utilization and governance, of these structures. While white label funds have many nuances and complexities, here, we focus on the basics to provide a foundation on which to begin building knowledge of white label solutions.

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