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In this episode, Chris Brown, Principal and Founder of Sway Research, and I discuss the Defined Contribution Investment-Only (DCIO) business
In this episode, Chris Brown, Principal and Founder of Sway Research, and I discuss the Defined Contribution Investment-Only (DCIO) business, what factors have led to its current state, and what it will take going forward for asset managers to win assets in defined contribution plans.
Defined Contribution plans in the United States hold nearly $10 trillion. And while much of this is invested in funds managed by recordkeeping platforms, a meaningful portion of these assets are managed by fund companies unaffiliated with the recordkeeping platform of a given defined contribution plan.
While DC plans have used funds from firms other than their recordkeeper since the inception of DC plans, it wasn’t until the early 2000s that investment firms began seeing DC plans as a source of significant asset flows and began to set up sales and service teams dedicated to this opportunity.
Given the market size – $10 trillion – DC plans represent a massive opportunity for asset managers. But getting a share of this market is not without challenges.
That's why firms turn to experts like Chris Brown to make sense of the DCIO business and for advice on capturing their fair share of this massive pool of capital.
Chris brings 25 years of financial services experience to his role as Principal and Founder of Sway Research. He has focused much of his career on researching and forecasting trends in retirement-related investment areas, including DCIO and target date funds. And his firm annually produces research reports on The State of DCIO Distribution and The State of the Target Date Market.
Some of the topics we discuss in this episode include the following:
· Historical context explaining past influences on the DCIO business,
· The current state of the DCIO business,
· How DCIO firms are tiered based on their market footprints,
· The basic infrastructure DCIO firms should have to give themselves a chance at success,
· Whether ESG (socially responsible investing) and retirement income products are viable ways to gather assets from DC plans,
· Chris’ thoughts about the areas of focus DCIO firms should concentrate on going forward,
· And more
Links and Contact Information
· How to contact Chris Brown: 603 382 5300 / info@swayresearch.com
Disclosures and Disclaimers
· Nothing in this episode is intended to be, or is, financial or legal advice,
· Statements and opinions expressed by those interviewed for this episode do not necessarily reflect those of the host, Matt Smith, and
· The content in this episode is not a paid promotion.
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