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401kExchange Welcomes
Diversified Investment Advisors Back to the Weekly
Exchange
AS
RECORD KEEPING BECOMES
more commoditized and investment platforms offer
virtually all available funds to mid-and larger plan
sponsors, it becomes harder for even good providers like
Diversified Investment Advisors (Diversified) that have
weathered the consolidation storm so far to distinguish
themselves. But Diversified has a combination of unique
advantages that is hard to match, and this bodes well
for their continued success.
The
key to Diversified’s success, which boasts over $43
billion in total retirement assets, over 2,200 DC plans
and almost $34 billion in DC assets, is their singular
focus on retirement. All of their almost 1,000
employees work on retirement plans and there is no fight
for internal resources or conflicts of interest with
other divisions. Focused squarely on the $5
million-plus DC market with an emphasis on $10-$250mm
plans, their 17 external and 10 internal wholesalers
work exclusively though advisors because their brand
requires an institutional sales emphasis. Of the almost
1,000 employees, over 10% work on maintaining their
internally developed record keeping system that is not
limited by proprietary system constraints that have
grown old and out of date. In an era of price
deflation, successful record keepers like Diversified
are finding ways to leverage technology and their highly
skilled workforce to find better efficiencies. With no
proprietary investment requirements or agenda, total
retirement capabilities that span 403(b), DB and Taft
Hartley plans, Diversified is a complete partner for
mid-market advisors. Other competitors are struggling
to offer small plan solutions but Diversified has the
luxury of partnering with Transamerica, a sister company
owned by AEGON, which has established itself as a force
with small plan advisors.
The
Diversified model of 100% focus on retirement,
advisor-sold, high-tech, non-proprietary investment
approach is well suited to survive and even thrive in
what is expected to be an ever increasing competitive
retirement market. Long term senior management are the
final key to giving Diversified an advantage over much
larger providers who have experienced alarming turnover
at the very highest levels which is never a good sign.
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