- Fidelity remains the largest DC recordkeeper by assets, increasing its market share to 22.8% in 2013. The top 10 recordkeepers now control 64.7% of the market.
- Fast growing recordkeepers focused on small plans, with firms like Alliance Benefit Group and Newport Group seeing over 30% asset growth. Vanguard also grew plans served by 32%.
- Recordkeeper leaders vary by plan size, with Paychex dominating micro plans, Fidelity in small/mid, and Fidelity/Aon Hewitt/Vanguard in large/mega plans. Consultants and advisors play a larger role in mid-sized plans.
Commercial real estate executives appear relatively optimistic about the general state of the market in 2016, with many predicting higher than average deal volumes for their firms. When considering the adoption of new technology, most believe that the influx of commercial real estate tech companies is revolutionizing the industry. These executives recognize that while the U.S. commercial real estate market is recovering, there are still certain segments that are poised for significant decline.
International Capital Standard (ICS) Background PwC
PwC US risk & capital management leader Henry Essert and PwC global insurance regulatory director Ed Barron
recently sat down to discuss the proposed International Capital Standards (ICS) for insurers. They addressed at
length what the ICS is and what it could mean to insurers. The following pages contain their thoughts on the
standard, as well as some background information on capital management and related issues in the
insurance industry.
Pwc 2015 Technology Sector Sec Comment Letter TrendsPwC
PwC's technology industry publication provides a comprehensive analysis of recent SEC staff comments and disclosures to assist you in understanding the key trends relevant to companies in the technology sector.
Commercial real estate executives appear relatively optimistic about the general state of the market in 2016, with many predicting higher than average deal volumes for their firms. When considering the adoption of new technology, most believe that the influx of commercial real estate tech companies is revolutionizing the industry. These executives recognize that while the U.S. commercial real estate market is recovering, there are still certain segments that are poised for significant decline.
International Capital Standard (ICS) Background PwC
PwC US risk & capital management leader Henry Essert and PwC global insurance regulatory director Ed Barron
recently sat down to discuss the proposed International Capital Standards (ICS) for insurers. They addressed at
length what the ICS is and what it could mean to insurers. The following pages contain their thoughts on the
standard, as well as some background information on capital management and related issues in the
insurance industry.
Pwc 2015 Technology Sector Sec Comment Letter TrendsPwC
PwC's technology industry publication provides a comprehensive analysis of recent SEC staff comments and disclosures to assist you in understanding the key trends relevant to companies in the technology sector.
This document brings together a set of latest data points and publicly available information relevant for Digital Customer Experience Industry. We are very excited to share this content and believe that readers will benefit from this periodic publication immensely.
Digital transformation and sustained shareholder supportGerrard Schmid
I recently collaborated with Craig Hapelt and Kilian Berz at BCG on the link between digital transformation and sustained shareholder support. A key topic for public companies as they wrestle with the implications of transforming their business models.
Pleased that our transformation journey at D+H formed a backdrop for this work. Hats off to all my former colleagues that helped us on that journey.
GT Events and Program Guide is a look ahead at the latest knowledge and insights available from Grant Thornton LLP. It includes a collection of our research, thought leadership and a schedule of upcoming webcasts and events.
Insurers are continuing to face marked changes in what customers expect in terms of products and service, how they obtain and utilize the information that informs business decisions, and their underlying business and operating models. Top Insurance Industry Issues in 2016 describes in detail the internal and external changes insurers face and how they can gain a competitive advantage..
Etude PwC CEO Survey banque et marchés de capitaux (2014)PwC France
http://pwc.to/1j7wgKv
D'après la 17e édition de l'étude annuelle de PwC menée auprès des dirigeants, qui intègre les contributions de 133 chefs d'entreprise du secteur bancaire dans 50 pays, 90% des dirigeants de ce secteur sont confiants quant à la croissance de leur chiffre d'affaires au cours des trois prochaines années.
Le nombre de ceux qui prévoient une amélioration de l'économie mondiale au cours des douze prochains mois a presque triplé par rapport à l'an dernier (56% actuellement contre 19% l'année dernière).
Le fait que 52% d'entre eux envisagent d'accroître leurs effectifs au cours de l'année – d'au moins 5% pour la plupart – illustre cette dynamique.
Mercer Capital's Investment Management Industry Newsletter | Q1 2021 | Focus:...Mercer Capital
Mercer Capital’s Investment Management Industry newsletter is a quarterly publication providing perspective on valuation issues pertinent to asset managers, trust companies, and investment consultants.
GT Events & Program Guide: ForwardThinking October/November 2017Grant Thornton LLP
ForwardThinking is a look ahead at the latest knowledge and insights available from Grant Thornton LLP. It includes a collection of our research, thought leadership and a schedule of upcoming webcasts and events.
Working Capital Performance - Building ProductsCraig Bailey
The Hackett Group's annual working capital survey identifies almost $4BN working capital opportunity within the Building Products industry. What are top performers doing to realize this benefit?
In 2013, the ban on general solicitation of accredited investors was lifted, causing the largest change to securities laws in decades. While everyone from startups to hedge funds will enjoy new liberties in investor marketing and outreach campaigns, it’s critical that the new rules are followed to a T, eliminating the chance for exemption rescission.
Mercer Capital's Value Focus: FinTech Industry | Third Quarter 2017 Mercer Capital
Mercer Capital’s quarterly newsletter, FinTech Watch, provides an overview of the FinTech industry, including public market performance, valuation multiples for public FinTech companies, and articles of interest from around the web. This newsletter focuses on FinTech segments, including payment processors, technology, and solutions companies, examining general economic and industry trends as well as a summary of M&A and venture capital activity.
GT Events and Program Guide is a look ahead at the latest knowledge and insights available from Grant Thornton LLP. It includes a collection of our research, thought leadership and a schedule of upcoming webcasts and events.
Fund Admin: the Zoo of Data & the Data Science SolutionInvestCloud Inc.
We're InvestCloud - California-based with a global presence, known for first-class, financial digital solutions, pre-integrated in the cloud. We create beautifully designed client experiences and intuitive operations solutions using our ever-expanding library of digital modular apps.
This document brings together a set of latest data points and publicly available information relevant for Digital Customer Experience Industry. We are very excited to share this content and believe that readers will benefit from this periodic publication immensely.
Digital transformation and sustained shareholder supportGerrard Schmid
I recently collaborated with Craig Hapelt and Kilian Berz at BCG on the link between digital transformation and sustained shareholder support. A key topic for public companies as they wrestle with the implications of transforming their business models.
Pleased that our transformation journey at D+H formed a backdrop for this work. Hats off to all my former colleagues that helped us on that journey.
GT Events and Program Guide is a look ahead at the latest knowledge and insights available from Grant Thornton LLP. It includes a collection of our research, thought leadership and a schedule of upcoming webcasts and events.
Insurers are continuing to face marked changes in what customers expect in terms of products and service, how they obtain and utilize the information that informs business decisions, and their underlying business and operating models. Top Insurance Industry Issues in 2016 describes in detail the internal and external changes insurers face and how they can gain a competitive advantage..
Etude PwC CEO Survey banque et marchés de capitaux (2014)PwC France
http://pwc.to/1j7wgKv
D'après la 17e édition de l'étude annuelle de PwC menée auprès des dirigeants, qui intègre les contributions de 133 chefs d'entreprise du secteur bancaire dans 50 pays, 90% des dirigeants de ce secteur sont confiants quant à la croissance de leur chiffre d'affaires au cours des trois prochaines années.
Le nombre de ceux qui prévoient une amélioration de l'économie mondiale au cours des douze prochains mois a presque triplé par rapport à l'an dernier (56% actuellement contre 19% l'année dernière).
Le fait que 52% d'entre eux envisagent d'accroître leurs effectifs au cours de l'année – d'au moins 5% pour la plupart – illustre cette dynamique.
Mercer Capital's Investment Management Industry Newsletter | Q1 2021 | Focus:...Mercer Capital
Mercer Capital’s Investment Management Industry newsletter is a quarterly publication providing perspective on valuation issues pertinent to asset managers, trust companies, and investment consultants.
GT Events & Program Guide: ForwardThinking October/November 2017Grant Thornton LLP
ForwardThinking is a look ahead at the latest knowledge and insights available from Grant Thornton LLP. It includes a collection of our research, thought leadership and a schedule of upcoming webcasts and events.
Working Capital Performance - Building ProductsCraig Bailey
The Hackett Group's annual working capital survey identifies almost $4BN working capital opportunity within the Building Products industry. What are top performers doing to realize this benefit?
In 2013, the ban on general solicitation of accredited investors was lifted, causing the largest change to securities laws in decades. While everyone from startups to hedge funds will enjoy new liberties in investor marketing and outreach campaigns, it’s critical that the new rules are followed to a T, eliminating the chance for exemption rescission.
Mercer Capital's Value Focus: FinTech Industry | Third Quarter 2017 Mercer Capital
Mercer Capital’s quarterly newsletter, FinTech Watch, provides an overview of the FinTech industry, including public market performance, valuation multiples for public FinTech companies, and articles of interest from around the web. This newsletter focuses on FinTech segments, including payment processors, technology, and solutions companies, examining general economic and industry trends as well as a summary of M&A and venture capital activity.
GT Events and Program Guide is a look ahead at the latest knowledge and insights available from Grant Thornton LLP. It includes a collection of our research, thought leadership and a schedule of upcoming webcasts and events.
Fund Admin: the Zoo of Data & the Data Science SolutionInvestCloud Inc.
We're InvestCloud - California-based with a global presence, known for first-class, financial digital solutions, pre-integrated in the cloud. We create beautifully designed client experiences and intuitive operations solutions using our ever-expanding library of digital modular apps.
Alumni-Vortrag vom 16.11.2016 an der Hochschule Karlsruhe Technik & Wirtschaft. Ute Klingelhöfer redet vor potenziellen Gründern über ihre Erfahrungen während der Selbstständigkeit.
This Presentation is based on the Mini Case Study of Chapter 12 of 'A South Asian Perspective Market Management' 14e : Managing a Holistic Marketing Organisation for a Long Run
This presentation is an interactive workshop to use with clients to help them understand and develop mission and mission statements. It was prepared for the CMO and head of retail for Dime Savings Bank of Williamsburg, but can be applied to any business. In this presentation you will learn the difference between these two commonly blurred company statements, go through interactive exercises to help develop them, and learn from the best visions and missions in the business.
Succeeding in SEO is an incredible approach to attract activity for Sites and there are a few approaches to do it. Content advertisers are encouraged to look for clever techniques to acquire links instead of attempting to amuse Google. Creating extraordinary substance matters a considerable measure in the business and a content marketer should concentrate more on link-earning instead of link building.Here are exhibited different content forms that can help an advertiser to procure increasingly links for his/her site
Strategy has little value until it is implemented. In a world where disruption can happen overnight, moving rapidly from strategy design to delivery is critical. Yet too many companies go only halfway, putting their best resources into design and in effect ending up treating delivery as an afterthought. As a result, strategies fail, customers leave, key talent is lost and financial performance suffers.
The new ‘A and B’ of the Finance Function: Analytics and Big Data - -Evolutio...Balaji Venkat Chellam Iyer
Published in 2013, this White Paper discusses how the finance function would evolve with the combined forces of Big Data and Analytics and the levers that could help catalyze the change and has drawn upon the Global Trend Study conducted by Tata Consultancy Services (TCS) on how companies were investing in Big Data and deriving returns from it.
2017 Linedata Global Asset Management Survey Linedata
Asset managers, administrators embrace differentiation to navigate challenging conditions; cite political concerns and ongoing regulatory constraints
• Seventh annual survey of global asset management industry highlights socio-economic and political concerns
• Disruption more likely to come from external factors rather than industry trends
• Differentiation now a major concern for respondents
• MiFID II the most important regulation over the next three years
Middle Market Economic Outlook: At a GlanceCIT Group
A presentation of findings from CIT's 3rd Annual Voice of the Middle Market study. Learn more about middle market executives' perspectives on:
- The Recovery of the U.S. Economy
- The Current Lending Environment
- 2015 Hiring Expectations
- Where Growth Opportunities Exist
- The Impact of Regulations on the Sector
- The 2014 and 2016 Election Cycles
1. August 6, 2014 1
Key Takeaways
— Despite an environment of large
mergers and acquisitions, leaders
like Fidelity and Vanguard maintained
or improved recordkeeper market
share in 2013.
— The share of DC recordkeeper
assets managed by the 10 biggest
players rose a bit from 64.2% in
2012 to 64.7% in 2013. Great-West’s
acquisition of J.P. Morgan’s large
plan business will help increase
concentration further.
— Third-party administrators and
providers focused on the small
plan segment featured heavily once
again in the list of fastest-growing
recordkeepers.
Many service providers in the $5 trillion DC market are in growth modes,
following the guideline of “go big or go home”. Every year seems to bring
epic combinations of recordkeepers – MassMutual and Hartford in 2013; and
Great-West, JP Morgan and Putnam in 2014. These moves redefine the meaning
of scale in the DC recordkeeping business, with significant asset and plan pres-
ence in most market segments.
So that asset managers may better understand the players in the recordkeeper
market, this Briefing highlights rankings of recordkeepers by total assets, plans,
participants and beyond.
Several industry tracking sources have recently
released their latest data on high-level trends in DC
recordkeeping. So Ignites Retirement Research has
compiled the relevant numbers, analyzed them,
and presented them in this Briefing – in time to
help firms with their planning for 2015. This over-
view of the recordkeeping market is a companion
piece to last week’s overview of DC markets, Drivers
of DC Market Growth.
Recordkeeper Leaders
Fidelity is the largest recordkeeping platform for
assets and participants in DC markets. Indeed, the
Boston giant’s market share of assets is just under
23%, making it the only provider with a double-digit
market share. This represents a nearly 1 percentage
point increase from last year. The nearest share lead-
er is TIAA-CREF, number two at 7%. Close behind is
AON Hewitt at 6.2% and Vanguard at 6.1%.
The very top deck will shuffle soon as Great-
West’s pending acquisition of J.P. Morgan’s business
will vault the firm to a 7% market share when 2014
by Tom Modestino, Retirement Research Director
Assessing DC
Recordkeeper Leaders
2. Research Methods
Our proprietary quantitative surveys are supplemented by interviews with key
executives, our knowledge of the business, and analysis of third-party data.
We turn surveys into published research within weeks, for timely intelligence
that reflects the latest trends.
Proprietary Surveys we’ve fielded include:
• Retail Investors (age 50s & 60s)
• DCIO Managers
• DC Recordkeepers
• Specialist Plan Advisors
• IRA Providers
Personnel
Tom Modestino is Retirement Research Director. He has over
20 years’ experience working for and consulting with financial
services firms on asset-gathering strategies in retirement
markets. Previously, he was an Associate Director at Cerulli
Associates, where he led the retirement practice. Prior to that,
Tom held senior marketing positions at New York Life Invest-
ment Management, John Hancock and Sun Life of Canada. He earned his
BA from Boston College. Contact Tom at tmodestino@money-media.com
Loren Fox is Director of Research at Ignites Research. Previously
he was a senior research analyst at Strategic Insight, producing
market intelligence on the fund industry. Prior to that Loren
was a journalist, working at Institutional Investor, Business 2.0,
and elsewhere. He earned his BA from Johns Hopkins University
and MS from Columbia University.
Contact Loren at lfox@money-media.com
• Target Date Fund Providers
• Third Party Administrators
• DCIO Marketing Heads
• Financial Advisors
For subscription information, please contact Ben Northover at
BenN@Ignites.com or 212.542.1291
Ignites Retirement Research delivers actionable, original research on the retail
retirement markets. Targeted research pieces available online and by mobile app fit
the way people work. Asset management executives use our service for planning,
benchmarking, strategy, presentations, and market intelligence.
3. August 6, 2014 3
is counted; that will further concentrate DC assets in the top 10.
However, it’s not all about asset scale in DC markets. Some recordkeepers
demonstrate strength in total numbers of plans served, and/or in average par-
ticipant balances – two other valuable measures of business quality. Elevated
participant balance levels indicate platforms where contribution flows are strong,
retention is steady, and asset allocation is smartly employed. Thus it may also
signal that the plan is working with an advisor or consultant who would be
worth partnering with.
For example, average balances at Vanguard, Prudential, Schwab and TIAA-
CREF are at or approaching $100,000. Also impressive are the firms like John
Hancock, ING (being renamed Voya), MassMutual, and Principal: these four
maintain relatively high average balances against books of business with 30,000+
plans. Their relatively healthy average balances have been achieved even though
the four all have a great emphasis on small plans, which may not be offering
generous company matches or the highest salaries. It’s important for DCIO
managers to assess both the scale and health of recordkeeping platforms to more
strategically gather assets with high-quality partners.
10 Biggest DC Recordkeepers by Assets
Company
Market Share:
2013
Market Share:
2012
Fidelity Investments 22.8% 22.0%
TIAA-CREF 7.0% 7.1%
Aon Hewitt 6.2% 6.2%
Vanguard 6.1% 6.1%
ING U.S. Retirement 5.8% 6.1%
Prudential Retirement 4.0% 4.0%
Great-West Financial 3.7% 3.6%
Wells Fargo 3.4% 3.5%
J.P. Morgan Retirement Plan Services 2.9% 2.9%
Principal Financial Group 2.8% 2.7%
Total Top 10 64.7% 64.2%
Source: Plansponsor.com, Dept. of Labor, ICI, Ignites Retirement Research
4. 4 August 6, 2014
DC Recordkeeper Asset Leaders, as of 12/31/13
Company Assets ($B) Plans Participants
Avg. participant
balance
1 Fidelity Investments $1,334.8 32,648 16,638,366 $80,222
2 TIAA-CREF $408.5 24,365 4,055,666 $100,720
3 Aon Hewitt $361.1 367 5,660,510 $63,784
4 Vanguard $358.1 3,787 3,565,176 $100,433
5 ING U.S. Retirement $340.0 47,012 5,045,474 $67,390
6 Prudential Retirement $234.5 5,038 2,481,622 $94,509
7 Great-West Financial $219.4 29,663 4,830,519 $45,430
8 Wells Fargo $199.3 4,003 3,185,195 $62,586
9 J.P. Morgan Retirement Plan Services $171.3 856 2,150,821 $79,623
10 Principal Financial Group $162.3 51,181 4,058,362 $39,998
Sources: Plansponsor.com, Ignites Retirement Research
Fastest Growers
Many recordkeeping platforms that are focused on small plans achieved no-
table growth rates in their businesses during 2013. In particular, we note that
pure TPAs (third-party administrators) strongly grew their platforms: firms such
as such as Alliance Benefit (asset growth of 37% in 2013), Newport Group (34%),
and PAi (30%). These firms represent higher-tier TPAs that are increasingly com-
peting with national recordkeepers and specialist plan advisors. They deserve
more organized attention from DCIO managers.
Also, some larger recordkeepers impressively grew their platforms in 2013. Most
of the largest recordkeepers maintain single-digit growth, a mark of the maturity
of the business for these firms. Typically for these large and established players,
increased growth can only be achieved through acquisition or merger (as seen by
Great-West’s planned acquisition of J.P. Morgan’s large-plan retirement business).
Vanguard is a prominent exception showing high plan growth, likely driven
by the company’s successful partnership with recordkeeper Ascensus (launched
in 2011) to offer services in small and mid-sized plans; before the Ascensus part-
nership, Vanguard rarely served plans under $10 million in size. Also, Transam-
erica seems to be achieving great success in both plan and asset growth from its
deepening connections with TPAs and advisors in small plan markets.
Leaders by Plan Size
The top leaders by asset and by segment reveal a multitude of operating
5. August 6, 2014 5
Fastest-Growing Recordkeepers in 2013
Company Asset Growth Company Plan Growth
Xerox HR Services LLC 47% Vanguard 32%
ADP Retirement Services 44% The Online 401(k) 16%
Alliance Benefit Group 37% Lincoln Financial Group 16%
Aspire Financial Services 36% GuideStone Financial Resources 15%
The Newport Group 34% ADP Retirement Services 15%
Transamerica Retirement Solutions 32% Aspire Financial Services 11%
Insperity Retirement Services 31% American Trust Retirement 10%
PAI 30% Great-West Financial 9%
City National Bank 29% Transamerica Retirement
Solutions
8%
New York Life Retirement
Plan Services
29% PNC Bank – Vested Interest 8%
Source: Plansponsor.com, Ignites Retirement Research
models in DC markets. In micro-plan markets (those with fewer than 10 par-
ticipants), Paychex leads with over $19 billion in assets. The bundled payroll /
401k package remains a big selling point for the smallest employers. The TPA
model from insurers maintains prominence in this segment as well. Typically,
these platforms utilize a group annuity product presenting mostly subadvisory
opportunities for DCIO managers. Fidelity sneaks into the leaderboard in this
space having success with Internet-only 401(k) services that also combine pro-
prietary payroll functionality.
Small and mid-sized plan markets (10 - 999 participants) have different ap-
proaches, and market share consolidates with the largest national recordkeepers.
Fidelity’s share is nearly double that of the nearest competitors. Also, the NAV
product without TPA becomes a staple offering in the mid-sized space. It can’t
be overlooked that advisor intermediaries take on larger roles in these segments.
Increasingly, specialized individuals and teams are gaining control over fund
decisions in these plans as they take on more complete fiduciary roles with
clients. There is a mad scramble in the market to effectively partner with these
firms. DCIO managers may have a leg up through enduring focus on these firms
with specific value add deliveries over recent years.
Diverse players such as Great-West, American Funds, Mass Mutual, John
Hancock and Principal maintain a strong presence with specialist advisors with
platforms that adjust from group annuity to NAV in accord with demands in this
space. Also, large wholesaling forces are highly focused on supporting the di-
6. 6 August 6, 2014
DC Recordkeeping Market Leaders by Segments (Assets in $ Billions)
Micro (Under 10 Participants) Small (10-99 Participants)
Paychex Inc. $19.3 John Hancock Retirement Plan Services $6.5
Principal Financial Group $7.1 Fidelity Investments $5.1
American Funds Distributors Inc. $7.1 Great-West Financial $5.6
John Hancock Retirement Plan Services $6.5 MassMutual Financial Group $4.4
ING U.S. Retirement $6.1 ING U.S. Retirement $6.1
Mid (100-1,000 Participants) Large-Mega (Over 1,000 Participants)
Fidelity Investments $141.5 Fidelity Investments $1,141.2
TIAA-CREF $88.1 Aon Hewitt $357.4
Principal Financial Group $53.8 Vanguard $309.0
Great-West Financial $51.4 TIAA-CREF $303.6
Vanguard $41.3 ING U.S. Retirement $264.0
Source: Plansponsor.com, Ignites Retirement Research
verse needs of specialists, particularly wirehouse carve-outs and the independent
broker dealers. In contrast, Vanguard is gaining success in this space through
focused service that appeal to RIA specialists where low cost is paramount.
In the large and mega plan markets, Fidelity has broadened its market share
in each segment. Too, Great-West’s acquisition of JP Morgan broadens its pres-
ence greatly in the mega segment.
TIAA-CREF shows solid gains among the largest non-profit plan sponsors,
but these are rarely “mega” in size. Insurers have gained some added presence
in these segments - Transamerica’s recent consolidation lands the firm among
large plan leaders.
Firms in these segments remain challenged by institutional service demands,
which are often driven by the increased use of consultants. Indeed, Aon Hewitt
is the only dominant national consultant/TPA in this space, often using custom
target date strategies within its platform. The good news is that custom target date
funds provide more opportunities for DCIO managers to run allocation sleeves
rather than ceding management to proprietary target date funds in other segments.
While Ignites Retirement Research projects that the overall DC market will
grow by a healthy 10% annually over the next few years, it is in some ways a
maturing market. Asset managers must understand the nuances of the different
market segments, especially as recordkeepers and specialist plan advisors increas-
ingly battles for influence over plan sponsors. g