Mercer Investment Consulting will be talking more about alternatives to mutual funds when they speak to defined contribution plans. Jeff Gabrione, newly-appointed head of Americas manager research, said in the past Mercer primarily discussed mutual funds. Now, he said, plan sponsors are looking for alternatives because they want bigger returns and clearer fees. He said plan sponsors are examining different share classes, separate account vehicles and taking a close look at expense ratios because they are looking for options with clearer fees. "There has been such scrutiny on fees recently," he said. "It is my job to stay on top of what is out there." Some alternatives to mutual funds, such as collective investment trusts, have fees disclosed up front, he noted. Others, such as real estate investment trusts and treasury inflation protected securities have in one way or another been wrapped into a CIT. Rich Nuzum, Americas business leader, said plan sponsors are looking to upgrade their investment lineup because open architecture has opened the door for them to do so. "Overall it's beneficial to diversify," he said. "Even if there are some new risks, which is why due diligence will be so important, and that is where Jeff's team comes in."