Industry Insight from Fred Barstein
2010 Mid Year Ratings Report - Micro Market Providers

Prudential led all providers in the 401kExchange Mid Year Ratings Report for investment services in the Micro Market (<$1 million); Prudential was followed by Ascensus <view profile>, T Rowe Price, and American Funds, the latter repeating from 2009 along with John Hancock <view profile>.   Better known larger providers dominated investment services including Fidelity, Oppenheimer <view profile>, Lincoln <view profile>, and Schwab, but smaller providers including Pai, Nicholas Hicks, TPA Associates, and UNIFI led the record keeping and administrative services category. 

Satisfaction rose 16% for investment services as compared to 2009 and 14% for record keeping and administrative services.  Though significant, satisfaction increased much more dramatically for larger plans.  With fewer and more sophisticated sponsors and advisors or consultants, service is important for all markets, but more important as the size of the plan increases.  It makes sense then, that most record keepers cut their teeth on smaller plans and then move up market, sometimes shifting their focus and leaving the door open for new or lesser known providers to follow.

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