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 Industry
Insight from Fred Barstein
2010 Mid Year Ratings Report -
Small Market Providers
Mutual of America,
a newcomer to the 401kExchange Ratings Top 10, gained
top honors for investment services in the Small Market
($1-$10 million) followed by a host of other newcomers.
In fact, the only providers that repeated for
investment services were
NY Life, Alerus,
and
Transamerica, with Alerus,
CPI,
and Charles Schwab being the only providers
returning for record keeping and administrative
services.
Newcomers to the top 10 in the 2010 Mid Year Report
include Ascensus
<view
profile> for investment services, as well as
BB&T, Vanguard, Hancock <view
profile>, and
UNIFI.
Though not as dramatic as the Mid Market ($10-$100 million)
2010 Mid Year Report, satisfaction for the Small Market
increased 21% over 2009 for both categories of service.
The Small Market is more open and less competitive
than the Mid Market with lesser known providers routinely
cracking the Top 10, though very few of these providers are
new to the DC or 401(k) markets.
Just as with the Mid Market, Advisors should be
cautious about the sustainability of any provider, but those
with stellar ratings are more likely to survive.
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Investment Services 2010 -
$1-$10 Million |
# of Surveys |
% Rated 4 or 5 |
2009 Ranking |
|
1 |
Mutual of America |
31 |
45.16% |
|
|
2 |
New York Life |
27 |
40.74% |
3 |
|
3 |
Bank Branch & Trust |
42 |
40.48% |
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|
4 |
Vanguard |
82 |
40.24% |
|
|
5 |
Alerus |
62 |
35.48% |
3 |
|
6 |
John Hancock |
1071 |
35.11% |
|
|
7 |
Ascensus |
60 |
35.00% |
|
|
8 |
CPI (A Subsidiary of CUNA Mutual) |
40 |
35.00% |
|
|
9 |
UNIFI |
35 |
34.29% |
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|
10 |
Transamerica |
227 |
33.48% |
9 |
|
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Market Total |
9,651 |
32.13% |
26.58% |
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Record Keeping & Administrative Services 2010 -
$1-$10 Million |
# of Surveys |
% Rated 4 or 5 |
2009 Ranking |
|
1 |
Vanguard |
53 |
50.94% |
|
|
2 |
Alerus Financial Services |
59 |
50.85% |
3 |
|
3 |
Mutual of America |
30 |
50.00% |
|
|
4 |
Alliance Benefit Group |
96 |
48.96% |
|
|
5 |
Charles Schwab & Co., Inc. |
48 |
47.92% |
2 |
|
6 |
Prudential |
86 |
43.02% |
|
|
7 |
Newport Group |
35 |
42.86% |
|
|
8 |
CPI (A Subsidiary of CUNA Mutual) |
62 |
41.94% |
9 |
|
9 |
Transamerica |
194 |
41.75% |
|
|
10 |
John Hancock |
192 |
41.67% |
|
|
|
Market Total |
9,576 |
40.14% |
33.07% |
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