|
 Industry
Insight from Fred Barstein
New
Providers Dominate Top Rated Small Market List
PROVIDERS WHO DID
not make the 2006 top 10 list dominated the 2007
401kExchange Ratings and Market Share Report in the
$1-$10 million market. Marshall & Ilsley retained its
top-rated position as fund manager but, of the top rated in
2006, only Standard, American Funds and First Mercantile
remained in the top 10 in 2007. Only four companies
remained on top as record keeper and administrator including
CUNA, M&I, Standard and Schwab. Overall, ratings dropped
15% from 2006 and the number of surveys increased by 13%.
Even while
consolidation continues among larger providers owned by
major financial service companies, small firms seem to be
thriving benefiting from better technology, personalized
customer service and access to more funds. With cost a
major factor, smaller firms can afford to be more
competitive as their corporate overhead is limited and there
is less pressure for growing profit margins. While advisors
still rely on the support of the local wholesalers, physical
presence is becoming less important to experienced
practitioners. As larger providers realize they have to
grow or go, some of these well run, highly rated firms may
prove enticing.
|
Fund Manager 2006 |
# of |
% Rated |
2006 |
|
Surveys |
4 or 5 |
Ranking |
|
1 |
Marshall & Ilsley Trust Co |
70 |
75.71 |
1 |
|
2 |
UNIFI Companies |
82 |
71.95% |
|
|
3 |
PNC Advisors |
57 |
70.18% |
|
|
4 |
SunTrust Bank |
79 |
69.62% |
|
|
5 |
Standard Insurance Co |
347 |
67.72% |
2 |
|
6 |
American Funds |
1,186 |
67.45% |
5 |
|
7 |
First Mercantile Trust |
114 |
66.67% |
10 |
|
8 |
Alerus Financial Services |
73 |
65.75% |
|
|
9 |
JP Morgan |
55 |
65.45% |
|
|
10 |
Mutual of America |
43 |
65.12% |
|
|
|
Market Total |
22732 |
60.46% |
|
|
|
|
|
|
|
|
Plan Administrator/ RecordKeeper 2006 |
# of |
% Rated |
2006 |
|
Surveys |
4 or 5 |
Ranking |
|
1 |
UNIFI Companies |
62 |
83.87% |
|
|
2 |
CUNA Mutual Life |
40 |
82.50% |
9 |
|
3 |
CDM Retirement Consultants |
46 |
78.26% |
|
|
4 |
PNC Advisors |
55 |
78.18% |
|
|
5 |
Mutual of America |
41 |
75.61% |
|
|
6 |
Marshall & Ilsley Trust Co |
65 |
75.38% |
1 |
|
7 |
Standard Insurance Co |
364 |
73.35% |
4 |
|
8 |
Vanguard Group, The |
129 |
72.09% |
|
|
9 |
CBIZ Benefit & Insurance |
57 |
71.93% |
|
|
10 |
Charles Schwab |
104 |
71.15% |
10 |
|
|
Market Total |
22458 |
64.73% |
|
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