John Hancock’s Retirement Plan Services (RPS) division enjoyed a 28% increase in sales last year and drove overall performance of the company, as Manulife reported 2012 sales and earnings. Driven by higher plan turnover and Hartford’s announced sale in 2012, RPS achieved record sales in the fourth quarter as well as the overall year. Highlights:
• $2 billion in Q4 sales, which was a 44% increase over the same period in 2011 — and a record
• $6 billion of sales in 2012, a 28% increase — and another record
• $72 billion in AUM, s a 14% improvement over 2011
The mutual fund division grew assets by 24%, to $42 billion, while their lifestyle and TDF funds grew to $80 billion, an increase of 13% — making them the fourth largest provider in that category. RPS’ bundled NAV product, which rolled out slowly in 2012, will give them a seat at the table for mid-market opportunities.
With some mid-market providers weakening and others slow or reluctant to embrace advisors, as well as Hancock’s ability to levelize participant fees on the new record keeping system they’ve built on VMS’ brokerage platform, they should enjoy significant success in the lower end of the mid market.
