News | 10.10.19
Large 401(k) Advisors Squeeze Out Small Rivals
Advisors in the Financial Times' latest list of top defined contribution (DC) plan advisors in the United States (FT 401) manage an average of $1.65 billion in plan assets, 31 percent higher than the average in last year's list. About 38 percent of this year's list are advisors with $1 billion or more in assets, up from 33 percent last year. Heightened demand from employers for more services has benefited advisors and companies that focus on retirement, and they have taken market share from advisors that serve a small number of plans. This pressure has prompted mergers within the industry. The increased pressure to improve efficiency, which is behind many of the mergers, is also pushing DC plan advisors to seek lower-cost investments.
Read the full article on Financial Times