With funds invested in defined contribution plans topping a whopping $3 trillion, there’s plenty to go around for those — retirement plan advisors among them — looking to manage a portion of this gargantuan pie.
Just how much of the DC plan market do advisors now claim as their own? A significant share, it turns out.
According to new research from global analytics firm Cerulli Associates, advisors controlled 28 percent of the DC space at year-end 2014. One reason: investor approval. Seven in ten investors say they’re satisfied with their financial services professional.
This happy state of affairs, among auspicious findings, are detailed in the October 2014 issue of the “The Cerulli Edge — U.S. Edition. The report examines the dynamics of the DC plan market, including investor “switching behavior”, advisor movement between firms and defined contribution investment-only (DCIO) growth.
The research shows that few investors are actually dissatisfied with their financial advisor: just 2 percent of those polled by Cerulli. The remaining investors (28 percent) are “neutral” about their advisor — neither satisfied nor dissatisfied.