Growth of the defined contribution investment-only (DCIO) market continues to outpace that of the DC plan market overall. Today, DCIO assets total $2.7 trillion, up from $2.2 trillion a year ago. Hearts & Wallets projects this will grow to $3.6 trillion in 2018, which means DCIO assets will make up 49 percent of the total DC market at that time, up from 46 percent today.
This is just one finding from Hearts & Wallets’ latest in-depth study of the DCIO market, “The State of DCIO Distribution: 2014—Assessing and Refining Strategy in Light of a Rapidly Evolving Market.”
The DCIO market has been fertile ground for asset and revenue growth for more than a decade, with dozens of managers establishing dedicated DCIO sales and marketing efforts to capture a share of the now $5.8 trillion DC market. With so many managers vying for face-time at industry events and in the offices of provider gatekeepers and leading intermediaries, it has become extremely difficult to break through the clutter and get products slotted into plan menus.