Précis for Retirement Services Intermediaries 6
Brightwork Partners, April 2010
Why do advisors recommend one 401(k) provider over another? How do advisors who place 401(k) business for a living view your organization? How do they view your competitors? What are these advisors like and what do they need from you? How well equipped are you to compete in the advisor channel for 401(k) business?
To answer these and a host of related questions, Brightwork Partners is pleased to announce the launch of Retirement Services Intermediaries 6 (RSI 6), our sixth multi-client survey of this group since 2001. Trended to these studies, RSI 6 provides a detailed analysis of this complex and dynamic distribution channel.
Modeling an Elusive Population
True 401(k) producers are a scarce lot, but the RSI series reliably captures an outstanding sample of advisors who derive significant income from 401(k) business. In the current study, these advisors earned an average of 34 percent of their professional income from fees or commissions on 401(k) plans.
Our sturdy segmentation from years past shows that 48 percent of advisors are light producers (less than 20 percent of their income from 401(k)); 25 percent are medium producers (20 to 59 percent) and 26 percent are heavy producers (60 percent or more).
What You Can Learn
As a subscriber to RSI 6, you will be able to:
- Understand penetration of the advisor channel by all leading providers
- Measure sales activity, crossprovider usage and share of book allotted to each provider
- Identify other retail and business products these advisors sell, including rollover IRA activity
- Rank 15 criteria by their importance to an advisor in a decision to recommend a provider
- Understand how advisors evaluate the performance of leading providers on these selection criteria
- Measure overall advisor satisfaction with each provider including the likelihood of using the provider more, less or about the same amount in the future
- Understand the prevalence and needs of fee-based advisors
- Understand the frequency with which advisors recommend various service models and for which size plans
- Profile advisors who prefer group annuity products to NAV products and vice versa
- Measure advisor response to PPA issues
Conclusions and Recommendations
Methodology
Provider Rating Bases
- Summary of Sample Characteristics
- Tenure Selling 401(k) Plans
- Share of Income Derived from 401(k)
Share of Key Variables by Channel
- Advisor Compensation Method
- Transition to Fee-based Business
- Affiliation
- National Brokerage Firm Affiliation
- Advisor as Fiduciary
- Service Model
- Service Model
- Plans Sold
- Number of Plans Sold
- Market Value of 401(k) AUM
- Retirement Products Sold
- Developing IRA Rollover Business
- Developing IRA Rollover Business
- Minimum Asset Rollover Target
- Number of IRA Rollovers
- Developing Retail Business with Executives
- Products Sold to Executives
- Business with Executives
- Other Business Services
- Products Sold to Decision Makers
- Business with Decision Makers
- Automatic Enrollment and Deferral
- Automatic Enrollment Investments
- Provider Designated One of Top Three
- Providers from Which Proposal Received
- Providers Receiving at Least One Case
- Shelf Space
- Shelf Space Top Providers
- Provider Usage by Case Size
- Importance of Provider Selection Criteria
Performance Metrics and Satisfaction: Leading Providers
- Provider Ratings: Responsiveness to Advisors
- Provider Ratings: Responsiveness to Plan Sponsors
- Provider Ratings: Fee Disclosure
- Provider Ratings: Responsive Inside Team
- Provider Ratings: Equalized Commissions
- Provider Ratings: Brand and Reputation
- Provider Ratings: Total Investment Costs
- Provider Ratings: Participant Service Features
- Provider Ratings: Due Diligence Support
- Provider Ratings: Minimizing Proprietary Fund Requirements
- Provider Ratings: Enrollment Support
- Provider Ratings: Fiduciary Role
- Provider Ratings: Business Building Tools
- Provider Ratings: Performance
- Provider Ratings: IRA Rollover Capture
- Provider Ratings: Retirement Wholesalers
Performance Metrics and Satisfaction: All Ranked Providers
- Provider Ratings: Responsiveness to Advisors
- Provider Ratings: Responsiveness to Plan Sponsors
- Provider Ratings: Fee Disclosure
- Provider Ratings: Responsive Inside Team
- Provider Ratings: Equalized Commissions
- Provider Ratings: Brand and Reputation
- Provider Ratings: Total Investment Costs
- Provider Ratings: Participant Service Features
- Provider Ratings: Due Diligence Support
- Provider Ratings: Minimizing Proprietary Fund Requirements
- Provider Ratings: Enrollment Support
- Provider Ratings: Fiduciary Role
- Provider Ratings: Business Building Tools
- Provider Ratings: Performance
- Provider Ratings: IRA Rollover Capture
- Provider Ratings: Retirement Wholesalers
Future Use
- Ranked by Greater Proportion
- Proportion of Future Placements by Top Provider: American Funds
- Proportion of Future Placements by Top Provider: Fidelity
- Proportion of Future Placements by Top Provider: John Hancock
- Proportion of Future Placements by Top Provider: Principal
- Will Get a Greater Proportion
- Provider Personalities
Provider Profiles
- American Funds
- Fidelity
- Great West Life
- Hartford
- ING
- John Hancock
- MassMutual
- Nationwide
- OppenheimerFunds
- Principal
- Transamerica
Provider Profiles: Directional
- AUL/OneAmerica
- AXA/Equitable Life
- Charles Schwab
- CitiStreet
- Lincoln National
- Lord Abbett
- MFS/Sunlife
- Pay-Chex
- Prudential Retirement
- Securian/Minnesota Life
- Standard Insurance
- Wachovia
- American Funds
- AXA
- Fidelity
- Great-West
- Hartford
- ING
- John Hancock
- Lincoln Financial
- MassMutual
- Nationwide
- Oppenheimer
- Principal
- Prudential
- Transamerica
Product Samples
A sample for this product is available. Please Login/Register to download this sample.
Customers who bought this item also bought
All rights reserved. © Copyright 2013 Research and Markets WWW5
Terms and Conditions Privacy Policy Publishers Employment Opportunities Site Map Link to us Webmaster Affiliate Network
