As defined contribution (DC) plan sponsors continue to refine their investment lineups, there is a sizable shake-up among the top 10 DC investment managers plan sponsors think of when considering a change to their lineups. Four investment managers¡ªJ.P. Morgan Asset Management, Goldman Sachs, Prudential Financial and John Hancock Funds¡ªare newcomers on the leaderboard among plan sponsors changing their investment lineup in the next 12 months. These and other findings are included in the annual DC Investment Manager Brandscape™, a Cogent Reports™ study by Market Strategies International.
According to the report, Vanguard advances over Fidelity Investments as the manager most likely to be considered by plan sponsors expecting to change their investment mix, with an aided consideration rate of 43% versus 37% for Fidelity Investments. Six firms maintain their top 10 status with some slight shifts in overall rank, with BlackRock making the most notable jump from 8th in 2014 to 3rd in 2015. Newcomers J.P. Morgan Asset Management and John Hancock Funds are the sole two firms in the top 10 to significantly increase their top 3-box consideration.
The study indicates 1 in 3 plan sponsors (35%) expects to modify their investment lineup in the next 12 months, underscoring how critical it is that DC investment managers stay on top of the most effective way to differentiate themselves.
¡°Every year presents new opportunities for investment managers to capture the attention of plan sponsors and gain further traction in the DC space,¡± says Linda York, vice president of Cogent Reports. ¡°While they¡¯ve been active in the DC market for years, 4 investment managers break into the top 10 this year, demonstrating that sizable results can be achieved with the right strategy in place.¡±
¡°Achieving differentiation in today¡¯s crowded market is tough,¡± adds York. ¡°Thought leadership offers a great path forward for firms struggling to break through the clutter. Only a handful of investment managers excel at thought leadership in the eyes of plan sponsors, yet it is critically important to driving consideration.¡±
