CAMBRIDGE, Mass.--(BUSINESS WIRE)--Retirement expertise and broader product consideration give a handful of asset managers an edge among plan advisors. Specializing in target date funds and retirement income products, firms such as John Hancock Financial Services, Principal Funds, Nationwide, Charles Schwab Investment Management and Wells Fargo have a more formidable brand presence in the DCIO market than in the broader retail advisory market. These and other findings are included in the Retirement Plan Advisor Trends™ study by Market Strategies International.
Cogent Reports tracks brand equity scores as a single measure of brand strength. Upon comparing DC investment manager brand equity scores from the Retirement Plan Advisor Trends study with mutual fund provider brand equity scores in the retail Advisor Brandscape® study, notable gains can be seen for several DCIO players. While John Hancock, Principal and Nationwide respectively rank 13th, 23rd and 28th in brand equity in the mutual fund retail market, they rank in the top 10 among DC advisors. Charles Schwab and Wells Fargo also make notable gains, jumping from 26th and 24th, respectively, in brand equity in the retail market to 13th and 15th among DC advisors.
“Instead of striving to be all things to all advisors, these five firms are doing an excellent job playing to their strengths and offering competitive solutions for the workplace retirement market,” said Sonia Sharigian, product director at Market Strategies and author of the report. “A closer look at consideration by product reveals these firms are carving out a distinct advantage within the target date funds and retirement income categories.”
One way for firms to boost their brand equity rank among plan advisors is to focus on brand consideration, one of three components used to calculate the brand equity score. The report found that only a few firms are able to differentiate themselves beyond actively managed mutual funds and target date funds to earn broader product consideration.
“There is tremendous opportunity for asset managers to expand plan advisor consideration for other important DC offerings such as retirement income products and target risk funds,” added Meredith Lloyd Rice, vice president at Market Strategies. “Above all, industry leaders can’t afford to be timid and should tout their DC market expertise and ability to provide innovative retirement income solutions to boost their brands in the DCIO market.”
About Retirement Plan Advisor Trends
Cogent Reports conducted an online survey of a representative cross section of 514 plan advisors in July through August 2017. Survey participants are required to have an active book of business of at least $5 million and be actively managing DC plans. Strict quotas are set during the data collection period, and post-fielding statistical weighting (where necessary) is applied. The data have a margin of error of ±4.32% at the 95% confidence level. Market Strategies will supply the exact wording of any survey questions upon request.
About Market Strategies International
Market Strategies International is a research and consulting partner with deep expertise in financial services, trusted by the world’s most successful wealth, banking, payments and insurance organizations to help them thrive. We blend primary research with data from our syndicated, benchmarking and self-funded studies to provide clients with exceptional research insight that helps solve their challenges. Our research specialties include brand, communications, CX, product development and segmentation. Our syndicated products, known as Cogent Reports, help clients understand the market environment, explore industry trends and monitor their brand within the competitive landscape. Founded in 1989, Market Strategies is one of the largest market research firms in the world. Read Market Strategies’ blog at FreshMR, and follow us on Facebook, Twitter and LinkedIn.
