Though the DCIO market continues to grow at a healthy pace, active money managers that don’t own a record keeping platform or manage TDFs may be left out in the cold. According to research by Strategic Insight, proprietary assets accounted for 46% of all DC assets as of 2012. Fueled by QDIAs, TDFs continue to grow — with a 12% market share at the end of 2012 (up from 5% in 2007). The market share of index funds grew from 10% to 13% over that same period, and is projected to reach 17% by 2018.
The DCIO market, now at $2.8 trillion, is expected to grow to $4 trillion over the next five years, with TDFs expected to grow from about $500 billion to $1.2 trillion over the same period. The ICI estimated that there were $5.1 trillion in DC assets at the end of 2012, $2.9 trillion of which were in mutual funds.
