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 Industry
Insight from Fred Barstein
2008 401kExchange Market Share Report
BASED ON ALMOST 50,000 surveys with 401(k) plan sponsors in 2008, many of the top 10 record keepers gained significant market share over the past year and the past three years. The chart below details which of the top 10 did well in 2008 as compared to 2007, with a comparison to their 2005 market share, which have been relatively slow periods for record keeper change. While there are many new plan start-ups based on reported numbers from Paychex which focuses on the under $250,000 market, larger markets, especially the $10-$100 million, is a zero sum game.
Of the top 10 record keepers, big winners in both the small ($1-$10 million) and micro ($250,000-$1 million) markets as measured by number of plans included Hartford and John Hancock, both of which had record sales years. ADP, ING and Fidelity scored well in both markets with Nationwide showing progress in the micro market and Great West in the small market over three years as a result of acquisitions. Transamerica, which did not place in the top 10 micro providers, fared well in the small market, as did American Funds which is hard to accurately measure, especially in the micro market, because of their various outsourced service models. Paychex reported record sales in 2008 but most plans were below $250,000 and therefore under our radar. In the mid market $10-$100 million) only a few record keepers did well led by Schwab, T Rowe Price and MassMutual. Prudential showed progress in 2008 but over a three years period they have lost ground to competitors. The full market share report is available by subscription through 401kExchange.
Rank |
Plan Size |
MktShare |
'07 v '08 |
'05 v. '08 |
2008 |
$250k - $1 Million |
by Plans |
Gain/Loss |
Gain/Loss |
5 |
Hartford Life Insurance Co. |
3.22% |
27.37% |
82.76% |
8 |
Nationwide Financial Services, Inc. |
2.79% |
12.52% |
50.41% |
2 |
ADP Retirement Services |
4.21% |
12.41% |
15.68% |
9 |
ING |
2.28% |
11.76% |
84.39% |
4 |
John Hancock Financial Services |
3.71% |
10.14% |
52.38% |
7 |
Fidelity Investments |
2.87% |
10.02% |
13.15% |
|
Rank |
Plan Size |
MktShare |
'07 v '08 |
'05 v. '08 |
2008 |
$1 Million - $10 Million |
by Plans |
Gain/Loss |
Gain/Loss |
7 |
Hartford Life Insurance Co. |
2.94% |
44.23% |
89.58% |
10 |
American Funds |
1.84% |
24.94% |
49.82% |
8 |
ING |
2.03% |
13.35% |
22.21% |
5 |
ADP Retirement Services |
2.97% |
11.89% |
23.70% |
6 |
John Hancock Financial Services |
2.53% |
10.73% |
16.69% |
9 |
Transamerica Retirement Services |
1.76% |
9.19% |
31.97% |
2 |
Fidelity Investments |
6.54% |
8.46% |
0.33% |
3 |
Great West Retirement Services |
3.47% |
4.05% |
133.38% |
|
Rank |
Plan Size |
MktShare |
'07 v '08 |
'05 v. '08 |
2008 |
$10 Million - $100 Million |
by Plans |
Gain/Loss |
Gain/Loss |
8 |
Charles Schwab & Co., Inc. |
2.81% |
20.62% |
28.91% |
9 |
T Rowe Price |
2.40% |
19.17% |
6.78% |
3 |
Prudential Retirement |
4.97% |
13.66% |
-17.54% |
5 |
MassMutual |
3.08% |
5.93% |
9.05% |
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