DC Provider Consolidation Report

As the federal and state governments, as well as the press and corporate America, view DC plans as the primary savings and retirement vehicle for most workers and their families, the DC industry is entering its next phase.

Though still relatively early, the stakes are higher for providers and advisors focused on retirement. Only the really serious ones with intellectual, financial and physical capital will be able to make an impact — a dynamic that highlights our mid-year 2015 DC Consolidation Report, available as an interactive list below and also in PDF format.

The deals done since 2014 highlight the fact that only record keepers that serve the $1 million-$250 million DC market with significant assets and deep pockets have any hope of surviving. Long-only active equity DCIOs without a viable TDF strategy (meaning most of them) face a shrinking pool of assets. BDs that have thus far hid their head in the sand about servicing advisors that work with DC plans are now facing an uncomfortable reality, with the DOL fiduciary rule affecting not just corporate plans but also IRAs. And the 25,000 advisors with more than $25 million in assets have a whole new set of options to consider.

Fintech companies are starting to eye the DC market, while PE and hedge funds jealousy eye a $25 trillion and growing pool of assets. For those that can actually reach participants via employers, the reality is not that farfetched — think Google or Facebook. And while alternative managers are unlikely to go direct to plans, participants or even advisors, they might be interested in partnering with asset allocators that do.

Will consolidation rather than expansion continue? Most likely, but the financial service industry in general, and retirement planning specifically, seems far too attractive for outsiders to ignore as technology breaks down the traditional barriers and obviates the need for capital-intensive technology and distribution — as traditional television and now cable providers are realizing. Did you ever think that you would access TV programming through your phone company or via the Internet where or when you want?

PROVIDERACTIONTypeSUCCESSORDATE
PioneerMergerDCIOSantander/Warburg/Gen Atl2015
BMOSellingRKOneAmerica2015
NADARTSoldRKEmpower-Retirement2015
AscensusSellingRK2015
NYLife RPSSoldRKJohn Hancock2015
Newport GroupSoldRKVerisight and Stone Point2014
Financial TelesisSoldBDLPL2014
Great-West/Putnam/JP MorganRebrandedRKEmpower-Retirement2014
City NationalSoldRKOneAmerica2014
Frank RussellSoldIOLSE2014
CeteraSoldBDRCAP2014
JP Morgan Large Mkt RKSoldRKGreat-West2014
Putnam RKMergedRKGreat-West2014
NuveenSoldIOTIAA-Cref2014
Daily AccessSoldRKVerisight and Stone Point2014
MunderSoldRKVictory2014
CPIRebrandedRKCUNA Mutual2014
RidgeworthSoldIOLightyear & Management2013
NFPTaken PrivateBDMadison Dearborn2013
INGIPORKPublic2013
Tower SquareSoldBDCetera2013
VerisightSoldRKStone Point2013
Walnut Street SecuritiesSoldBDCetera2013
ASPireRaise CapitalRKFinancial Technology Ventures2012
Dwight Asset ManagementSoldIOGoldman Sachs2012
ExpertPlanSoldRKAscensus2012
HartfordSoldRKMassMutual2012
Morgan KeeganSoldBDRaymond James2012
VanguardOutsourcedRKAscensus2012
Columbia InvestmentssoldIOAmeriprise2011
E PlansoldRKPaychex2011
M&Isold RKBMO2011
McGladreysoldRKVerisight2011
OppenheimerExited RKRKAscensus2011
First American FundsSoldIONuveen2010
MatrixSoldOTHERBroadridge2010
McCready & KeenesoldRKOneAmerica2010
NextStep/BenefitStreetsoldRKVerisight2010
NRPsoldBDLPL2010
ABG MidAtlanticsoldRKBPA2009
Baden (Clark)SoldRKAscensus2009
CPISoldRKCUNA Mutual2009
Hand BenefitssoldOTHERBPA2009
Merrill LynchSoldBDBank of America2009
PutnamsoldRKPower Financial (GreatWest)2009
Schloss & Co.soldRKSentinal (Focus Finncial)2009
Symetra (Mutual Fund Product)SoldRKAscensus2009
WachoviaSoldRKWells Fargo2009
401(k)Advisors & RPAGsoldBDNFP2008
CitiStreetSoldRKING2008
First MercantilesoldRKMassMutual2008
BisysSoldJC Flowers/Crump2007
Franklin TempletonSoldGreat West2007
Princeton Retirement GroupSoldHartford2007
Sentinel BenefitsSoldFocus Financial2007
SunLife (MFS)SoldHartford2007
UBOCSoldPrudential2007
AmeripriseSoldWachovia2006
BadenSoldClark Consulting2006
CCASoldJP Morgan2006
CeridianSoldNewport Group2006
CynergySoldJP Morgan2006
Geller & WindSoldFocus Financial2006
InvesmartSoldStandard2006
MetLifeSoldGreat West2006
MFSSoldSunLife 2006
Southeastern Employee BenefitsSoldPaychex2006
SunGuard (STN)PartneredFidelity (IWS)2006
The 401kCompanySoldSchwab2006
US BankSoldGreat West2006
ABN AMROSoldPrincipal2005
American ExpressSold/RenamedIPO/Ameriprise2005
AmvescapSoldMerrill Lynch2005
AXA AdvisorsOutsourcedBFDS/DST2005
CitiStreetSold (403(b) Business)Met Life2005
Federated InvestorsOutsourcedFascore2005
Fifth Third BankOutsourcedFascore2005
JP MorganOutsourced Fascore2005
MellonSoldACS2005
Metavante (M&I)SoldGreat West2005
MetLifeOutsourced 403(b)CitiStreet2005
SunguardSoldPrivate Equity Group2005
TravelersSoldMet Life2005
Union CentralMergedAmeritas/Unifi2005
AG EdwardsSoldCPI2004
American ExpressOutsourced Great West2004
BancOneSoldJP Morgan2004
Bank of NYSoldWachovia2004
CNA TrustSoldUnion Bank of California2004
ComericaOutsourcedWachovia2004
GoldKSoldLBMC2004
Harris BankSoldWells Fargo2004
John HancockSoldManulife2004
PutnamCarve outMercer HR2004
SouthtrustSoldWachovia2004
StrongSoldWells Fargo2004
401k CompanyExited small market2003
American CenturySoldJP Morgan2003
CignaSoldPrudential2003
DelawareOutsourced Bisys2003
Emjay/Wells FargoSoldGreat West2003
Enterprise/MONYSoldAXA2003
Federated InsuranceSoldGreat West2003
FleetSoldBank of America2003
GEOutsourcedBisys2003
mPowerSoldMorningstar2003
Northern TrustSoldHewitt2003
Pan AmericanSoldSecurian2003
PFPCSoldWachovia2003
PioneerExited2003
PutnamOutsourced Expert Plan2003
SafecoSoldSymetra2003
ScudderSoldADP2003
UMBSold M&I2003
US BankOutsourcedBisys2003
Administrative Management GroupSoldLincoln Financial2002
American SkandiaExited2002
Bank of NYOutsourcedPFPC2002
CBIZOutsourcedBisys2002
EmplanetExited2002
GuardianExited2002
Key BankSoldPrincipal2002
Merchantile BankOutsourcedBisys2002
MetLifeMergedGen Am & New England2002
National City BankOutsourcedHewitt2002
Nippon LifeExited2002
PersummaMergedMassMutual2002
Provident MutualSoldNationwide2002
State Street ResearchExited2002
SunTrustOutsourcedNationwide2002
TrustarExited2002
AllmericaSoldSecurian2001
EmjaySoldWells Fargo2001
FleetOutsourcedINVESCO2001
John HancockSold Retirement BusinessUPI2001
LaSalle BankOutsourcedChicago Title & Trust2001
MetLifeSold large plansHewitt2001
Morgan StanleyOutsourcedADP/Fidelity2001
PaineWebberOutsourcedMFS2001
ReliastarSoldAetna2001
TeamvestSoldNewport Group2001
Unifi (PWC)SoldMellon HR2001
UPISoldBisys2001
WachoviaOutsourced large plansInvesco2001
WachoviaSoldFirst Union2001
American CenturyOutousced/Exited Small MarketADP2000
Bank of AmericaOutsourcedADP/Aegon2000
Huntington BankExited2000
Merrill LynchSold <$3mmBisys2000
PrudentialOutsourced <$3mmBisys2000
T Rowe PriceOutsourced small plansTrustar2000
Chase Manhattan BankOutsourcedFidelity1999
CitiBank (Copeland/Smith Barney)MergedCitiStreet1999
State Street MergedCitiStreet1999
PFPCSoldPNC Bank
AetnaSoldING
TransamericaSoldAegon

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