PLANADVISER - May/June 2019 - 27
The state of the DCIO industry
EVEN in the early days of defined contribution (DC) plans, it was clear that the
economic opportunities they provided were enormous, and the structure of mutual
funds made them a go-to investment vehicle. Large mutual-fund managers adapted
their shareholder accounting systems for DC recordkeeping, to offer sponsors a turnkey
investment-and-administration package. In the years since, DC plans have evolved to
become a complex and competitive ecosystem, holding about $8 trillion in total assets
at year-end 2018, according to the Investment Company Institute (ICI).
But sponsors realized that investing through captive recordkeeping outlets had
its drawbacks. " Defined contribution investments used to be all proprietary funds,
bundled with recordkeeping services from the asset manager, " says Stephen Dopp,
national director of defined contribution at investment manager Lord, Abbett & Co. in
Jersey City, New Jersey. That made for a good start, but then sponsors wanted a greater
choice of funds.
" No single manager has the best products in every asset class, and you can't satisfy
your fiduciary requirements with a single fund family, " Dopp says. Thus, an open
architecture investment structure developed among DC plans, like the one that had
arisen in the private wealth market, and asset managers welcomed the opportunity
to sell into the enormous DC retirement space without having to be affiliated with a
recordkeeping business-a structure known as DC investment only, or DCIO.
" Why tether yourself to just a proprietary offering? " says James Martielli, head of
defined contribution advisory services at The Vanguard Group in Malvern, Pennsylvania.
" DCIO provides a wider choice, allows a more appropriate menu and puts things
Art by Valeria Petrone
planadviser.com May-June 2019 | 27
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PLANADVISER - May/June 2019
Table of Contents for the Digital Edition of PLANADVISER - May/June 2019
Advisers' Future Trajectory
Tangled
2019 PLANADVISER DCIO Survey
High-Tech Meets High-Touch
Whatever Suits
New Platforms Support ETFs
Major Cases
Good News for P.R. Plans
Denial of Benefits
The Cost of Advising One's Own Plan
PLANADVISER - May/June 2019 - C1
PLANADVISER - May/June 2019 - FC1
PLANADVISER - May/June 2019 - FC2
PLANADVISER - May/June 2019 - C2
PLANADVISER - May/June 2019 - 1
PLANADVISER - May/June 2019 - 2
PLANADVISER - May/June 2019 - 3
PLANADVISER - May/June 2019 - 4
PLANADVISER - May/June 2019 - 5
PLANADVISER - May/June 2019 - 6
PLANADVISER - May/June 2019 - 7
PLANADVISER - May/June 2019 - 8
PLANADVISER - May/June 2019 - 9
PLANADVISER - May/June 2019 - 10
PLANADVISER - May/June 2019 - 11
PLANADVISER - May/June 2019 - 12
PLANADVISER - May/June 2019 - 13
PLANADVISER - May/June 2019 - 14
PLANADVISER - May/June 2019 - 15
PLANADVISER - May/June 2019 - 16
PLANADVISER - May/June 2019 - 17
PLANADVISER - May/June 2019 - 18
PLANADVISER - May/June 2019 - 19
PLANADVISER - May/June 2019 - Advisers' Future Trajectory
PLANADVISER - May/June 2019 - 21
PLANADVISER - May/June 2019 - 22
PLANADVISER - May/June 2019 - 23
PLANADVISER - May/June 2019 - 24
PLANADVISER - May/June 2019 - 25
PLANADVISER - May/June 2019 - Tangled
PLANADVISER - May/June 2019 - 27
PLANADVISER - May/June 2019 - 28
PLANADVISER - May/June 2019 - 29
PLANADVISER - May/June 2019 - 2019 PLANADVISER DCIO Survey
PLANADVISER - May/June 2019 - 31
PLANADVISER - May/June 2019 - 32
PLANADVISER - May/June 2019 - 33
PLANADVISER - May/June 2019 - 34
PLANADVISER - May/June 2019 - 35
PLANADVISER - May/June 2019 - High-Tech Meets High-Touch
PLANADVISER - May/June 2019 - 37
PLANADVISER - May/June 2019 - 38
PLANADVISER - May/June 2019 - 39
PLANADVISER - May/June 2019 - 40
PLANADVISER - May/June 2019 - 41
PLANADVISER - May/June 2019 - Whatever Suits
PLANADVISER - May/June 2019 - 43
PLANADVISER - May/June 2019 - 44
PLANADVISER - May/June 2019 - 45
PLANADVISER - May/June 2019 - New Platforms Support ETFs
PLANADVISER - May/June 2019 - 47
PLANADVISER - May/June 2019 - Major Cases
PLANADVISER - May/June 2019 - 49
PLANADVISER - May/June 2019 - Good News for P.R. Plans
PLANADVISER - May/June 2019 - Denial of Benefits
PLANADVISER - May/June 2019 - The Cost of Advising One's Own Plan
PLANADVISER - May/June 2019 - C3
PLANADVISER - May/June 2019 - C4
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