The market for investment-only defined contributionplans is expected to grow to 60 percent of the DC plan marketby 2017, according to a new report.

Strategic Insight, New York, published this finding in a summaryof results from a new survey of investment-only and proprietarydefined contribution plan assets. This second report of StrategicInsight’s new DC Research Suite, DCMarket Sizing and Outlook 2012, provides definedcontribution market sizing and forecasts by plan type, plan size,and vehicle structure, plus findings from a DCIO manager surveyfielded in April 2012.

More than 30 firms participated in the survey fielded byPlanadvisor (an affiliate of Strategic Insight), representing morethan $1.3 trillion in investment-only assets.

Investment-only DC plan assets, the study says, will grow to$3.5 trillion by 2017, a 52 percent rise from the $2.3 trillionrecorded at year-end 2011. The 2017 total also represents an 8percent growth in market share relative to year-end 2011, wheninvestment-only plans stood at 52 percent of all DC plan assets;the balance of plans comprise proprietary plans.

Investment-only assets, the study states, refer to definedcontribution plan assets managed by an asset management firm.Proprietary plan refer to those run by a record-keeper oradministrator.

Strategic Insight Research Analyst Bridget Bearden attributesthe rise in market share to fee disclosure regulations that will“shed light upon what have often been considered ambiguous feearrangements.”

The scrutiny of DC plan fees, the report adds, will speedthe growth of “open architecture” DC plan models, notably amonginvestment platforms that traditionally offered their ownfunds.

The total DC plan market—including 401(k), 403(b), 457,profit-sharing and similar plans—will grow to $5.9 trillion by2017, the study says. This represents a 31 percent rise from the$4.5 trillion in assets posted at year-end 2011.

A survey conducted for the report found that mutual fund firmsare responding to the DC investment-only growth opportunity. Morethan half of firms reported increasing commitment to DCIO by addingheadcount: The median number of DCIO-focused sales people doubledto six in March 2012 from three in 2010.