October 29, 2015

Most Asset Managers Still Generating Positive DCIO Net Sales Amid Mounting Obstacles to Growth and Profits

Target-Dates, Intense Fee Focus Create Tough Environment for Active Managers

Published in partnership with Hearts & Wallets LLC, the latest The State of DCIO Distribution in-depth research study reveals a Defined Contribution market that is strong and growing on its surface, with positive net sales for the majority of firms surveyed, but considerable turmoil lurking just underneath. In the first half of 2015, 70 percent of the 30 asset managers surveyed recorded positive net sales. This is a marked improvement over full-year 2014, when only 54 percent of managers had positive net flows, but 2014 was a historically bad year. Defined Contribution Investment-Only (DCIO) sales improvements have not reached levels seen prior to 2013, when 80 percent or more of managers regularly produced net sales “in the black.” Read more.