Dan Cwenar
President and General Manager
Access Data, a Broadridge Company
Leveraging Data and Analytics to
Drive Your DCI...
2
Today
• Product distribution
• Retirement channel distribution
• Insights into the “advisor driven” DC market
• Conclusi...
3
I: Expectations are high
4
5
II: Framework for thinking about data
Volume
Velocity
Variety
Veracity
Inversely
proportional?
Doug Laney, 2001
6
III: Data solutions versus rules-based solutions
• Payroll and accounting solutions are rule dependent
• Data solutions
...
7
IV: Role of variety
• Big Data can indeed be BIG
• +55,000 files per month
• 1x1010 data points
• Variety
Product Distribution
9
Generic product distribution is complex and dynamic1
92.4 million
Investors
290 million accounts,
54 million households
...
10
Industry trends create unique data challenges
• Omnibus accounting  less transparency
• Lack of data exchange standard...
Retirement Channel
Unique transparency challenges
12
Components of product distribution1
Manufacturers
+700
Products
+16,000
Sales / Ops
+38,000 professionals
Intermediarie...
13
New entities are introduced1
Plan
Participants
Plan
Sponsors
Plans
(large versus
small)
Record
Keepers and
TPAs
Advisor...
14
Product distribution becomes MORE complex1
Manufacturers
+700
Products
+16,000
Sales / Ops
+40,000 professionals
Distri...
15
Fastest growing segment of
employer sponsored plans
(27% 1985 / 41% 2012)
1. Data based on the 2013 ICI Fact Book, ICI ...
16
Advisors target small to medium
DC Plans. These plans
overwhelmingly employ Mutual
Fund products.
Fastest growing segme...
17
Total Assets
$2T
Advisor Sold
DC Plans 450K
of 650K (70%)
Advisor Sold
DC Participants 49M
of 88M (56%)
Independents
$1...
Advisor Driven DC Market
Platform Insights
19
Advisor driven DC assets by platform type1
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
Mutual Fund Platform Supermarket...
20
DC plans by platform type1
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
Supermarket Platforms Mutual Fund P...
21
Top Fund, Supermarket, and Insurance platforms1
1. Source: Retirement Plan Sponsor Survey
Asset Rank Firm Millions of $...
Advisor Driven DC Market
Advisor Insights
23
Advisor affiliation: advisors selling one or more plans1
-
10,000
20,000
30,000
40,000
50,000
60,000
Banks and Trust
Co...
24
Advisors selling DC plans1
85K
67K
18K
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
Total Advisors ...
25
3.68
2.2
1.3
-
1
2
3
4
Retirement Specialists Retirement Users Total  Participating Advisors
Top advisors by number of ...
26
20+,
16%
10-19,
24%
5-9,
25%
1-4,
35%
Currently Manage in 2012
Average number of plans managed per year1
BASE = Advisor...
Conclusions
Advisor Insights
28
I: Conclusions: Strategies for driving growth
• The advisor driven DC market is significant and
growing
• Gaining insig...
29
II: Conclusions: Strategies for driving growth
• A data management program is key to growing your
business
• Data live ...
30
III: Conclusions: Strategies for driving growth
• “Data Insights” support:
• Territory management / sales staff allocat...
31
http://access-data.broadridge.com/
Thank You
Leveraging Data and Analytics to
Drive Your DC and DCIO Business
February 10, 2014
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Leveraging Data and Analytics to Drive Your DCIO Business

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Leveraging Data and Analytics to Drive Your DCIO Business

  1. 1. Dan Cwenar President and General Manager Access Data, a Broadridge Company Leveraging Data and Analytics to Drive Your DCIO Business February 10, 2014
  2. 2. 2 Today • Product distribution • Retirement channel distribution • Insights into the “advisor driven” DC market • Conclusions
  3. 3. 3 I: Expectations are high
  4. 4. 4
  5. 5. 5 II: Framework for thinking about data Volume Velocity Variety Veracity Inversely proportional? Doug Laney, 2001
  6. 6. 6 III: Data solutions versus rules-based solutions • Payroll and accounting solutions are rule dependent • Data solutions • Not knowing all the questions is OK • “Directional” idea: “I want to understand DCIO distribution”
  7. 7. 7 IV: Role of variety • Big Data can indeed be BIG • +55,000 files per month • 1x1010 data points • Variety
  8. 8. Product Distribution
  9. 9. 9 Generic product distribution is complex and dynamic1 92.4 million Investors 290 million accounts, 54 million households 38,160 Sales & Distribution Professionals +500,000 Advisors, +20,000 Firms 16,380 Products Manufacturers distribute products directly to investors 776 Fund Sponsors, $16 Trillion AUM Manufacturers distribute products via intermediaries to investors 1. Data based on the 2013 ICI Fact Book, ICI Quarterly update bulletins, and Broadridge proprietary research
  10. 10. 10 Industry trends create unique data challenges • Omnibus accounting  less transparency • Lack of data exchange standards  poor data quality and management • Regulatory environment  fee scrutiny, held away assets, revenue sharing • Complex distribution environment  many data islands • Difficulty finding the right advisors  500,000 advisors with different needs and preferences Intermediary 1 Intermediary 2 Intermediary 3 Intermediary 4 Intermediary 5 Intermediary n Mfg 1 Mfg 2 Mfg 3 Mfg 4 Mfg 5 Mfg n Typical Data Exchange Process
  11. 11. Retirement Channel Unique transparency challenges
  12. 12. 12 Components of product distribution1 Manufacturers +700 Products +16,000 Sales / Ops +38,000 professionals Intermediaries +20,000 firms Advisors +500,000 Investors +92M / $16T Generic 3rd party distribution model 1. Data based on the 2013 ICI Fact Book, ICI Quarterly update bulletins, and Broadridge proprietary research
  13. 13. 13 New entities are introduced1 Plan Participants Plan Sponsors Plans (large versus small) Record Keepers and TPAs Advisors (DC specialists) Manufacturers +700 Products +16,000 Sales / Ops +38,000 professionals Intermediaries +20,000 firms Advisors +500,000 Investors +92M / $16T 1. Data based on the 2013 ICI Fact Book, ICI Quarterly update bulletins, and Broadridge proprietary research
  14. 14. 14 Product distribution becomes MORE complex1 Manufacturers +700 Products +16,000 Sales / Ops +40,000 professionals Distributors / TA +20,000 firms Advisors +500,000 DC Record Keepers / TPAs +1,500 DC Plans +650,000 Plan Sponsors +450,000 Plan Participants +88M / $5.6T Advisors (DC Specialists) +5,000 Without data and analytics, finding these advisors is challenging The 1% Problem Manufacturers +700 Products +16,000 Sales / Ops +38,000 professionals Intermediaries +20,000 firms Advisors +500,000 Investors +92M / $16T DC Distribution3rd Party Distribution 1. Data based on the 2013 ICI Fact Book, ICI Quarterly update bulletins, and Broadridge proprietary research
  15. 15. 15 Fastest growing segment of employer sponsored plans (27% 1985 / 41% 2012) 1. Data based on the 2013 ICI Fact Book, ICI Quarterly update bulletins, and Broadridge proprietary research Context of “advisor driven” assets1 DC – MF $3.3T (59% of DC) DC: 401k, 403b, 457, Keogh $5.6T (26% of Retirement) IRA, DC, Private DB, Government, Annuity $21.9T
  16. 16. 16 Advisors target small to medium DC Plans. These plans overwhelmingly employ Mutual Fund products. Fastest growing segment of employer sponsored plans (27% 1985 / 41% 2012) 1. Data based on the 2013 ICI Fact Book, ICI Quarterly update bulletins, and Broadridge proprietary research DC: 401k, 403b, 457, Keogh $5.6T (26% of Retirement) IRA, DC, Private DB, Government, Annuity $21.9T DC – Advisor Driven $2.0T (36% of DC) Context of “advisor driven” assets1
  17. 17. 17 Total Assets $2T Advisor Sold DC Plans 450K of 650K (70%) Advisor Sold DC Participants 49M of 88M (56%) Independents $1.6T $.4T Supermarket-driven 1. Data based on Broadridge proprietary research Advisor driven DC landscape1
  18. 18. Advisor Driven DC Market Platform Insights
  19. 19. 19 Advisor driven DC assets by platform type1 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 Mutual Fund Platform Supermarket Platforms Insurance Platforms Advisor Driven: $2T 1. Source: Plan Sponsor Survey and Broadridge proprietary research 20% 39.0% 60% BillionsofDollars 20%
  20. 20. 20 DC plans by platform type1 - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 Supermarket Platforms Mutual Fund Platform Insurance Platforms Advisor Driven: 450K Plans 4% 1. Source: Plan Sponsor Survey and Broadridge proprietary research NumberofPlans 67% 29%
  21. 21. 21 Top Fund, Supermarket, and Insurance platforms1 1. Source: Retirement Plan Sponsor Survey Asset Rank Firm Millions of $ Plans Average Plan Size ($) 1 ING 301,720 47,718 6,322,981 2 Great West 178,166 27,266 6,534,365 3 Principal 136,987 47,857 2,862,423 4 Mass Mutual 104,318 37,159 2,807,341 5 Transamerica 82,292 20,345 4,044,827 6 Nationwide 79,161 40,698 1,945,083 7 John Hancock 71,105 44,620 1,593,568 8 Lincoln 48,940 23,429 2,088,864 9 New York Life 32,595 1,650 19,754,545 10 OneAmerica 18,100 9,700 1,865,979 1,053,384 300,442 3,506,114 Asset Rank Firm Assets (millions of $) Plans Average Plan Size ($) 1 Fidelity 1,096,623 32,293 33,958,536 2 Prudential 199,488 5,145 38,773,178 3 Schwab 109,363 1,164 93,954,467 4 Ascensus 41,973 41,338 1,015,361 5 ADP 40,473 35,384 1,143,822 6 American Funds 37,648 34,686 1,085,395 7 Newport 23,422 2,261 10,359,133 8 CUNA Mutual 11,315 6,214 1,820,888 9 Daily Access 8,050 1,595 5,047,022 10 Aspire 5,637 6,056 930,812 1,573,992 166,136 9,474,118
  22. 22. Advisor Driven DC Market Advisor Insights
  23. 23. 23 Advisor affiliation: advisors selling one or more plans1 - 10,000 20,000 30,000 40,000 50,000 60,000 Banks and Trust Companies RIA Independent / Regional BDs Wirehouse 68% 22% 5%5% 1. Source: Broadridge proprietary research NumberofDCAdvisors
  24. 24. 24 Advisors selling DC plans1 85K 67K 18K - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 Total Advisors Selling DC Plans Advisors on One Platform Advisors on Multiple Platforms 79% 21% 100% 1. Source: Broadridge proprietary research NumberofDCAdvisors
  25. 25. 25 3.68 2.2 1.3 - 1 2 3 4 Retirement Specialists Retirement Users Total  Participating Advisors Top advisors by number of platforms1 5K Advisors 13K Advisors 85,000 Advisors 15% (of 85K) 6% (of 85K) or 1% (of 500K) 1. Source: Broadridge proprietary research NumberofDCAdvisors Further segment the 18K who are affiliated with multiple platforms…
  26. 26. 26 20+, 16% 10-19, 24% 5-9, 25% 1-4, 35% Currently Manage in 2012 Average number of plans managed per year1 BASE = Advisors with 5%+ AUM in 401(K) Plans 1. Source: Cogent Research, Retirement Plan Advisor Brandscape® 2012 20+, 24% 10-19, 25% 5-9, 28% 1-4, 23% Anticipate in 2013
  27. 27. Conclusions Advisor Insights
  28. 28. 28 I: Conclusions: Strategies for driving growth • The advisor driven DC market is significant and growing • Gaining insights into this market can be challenging • Finding the needle in the haystack can be challenging (1% problem) • Use data to identify best prospects
  29. 29. 29 II: Conclusions: Strategies for driving growth • A data management program is key to growing your business • Data live everywhere and change daily • “VARIETY”: Link retirement specialists with their associated plans • Segmentation
  30. 30. 30 III: Conclusions: Strategies for driving growth • “Data Insights” support: • Territory management / sales staff allocation • Competitor analysis (region, product, and channel) • Compensation plans and management • Using multi-channel communications, engaging content and education • Measure results / modify approach
  31. 31. 31 http://access-data.broadridge.com/
  32. 32. Thank You Leveraging Data and Analytics to Drive Your DC and DCIO Business February 10, 2014

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