NEPC’s Bill Ryan was quoted in a recent Pensions & Investments article to discuss record keeper outlook for the market. View the article on Pensions & Investments’ site here.
“Surging stock and bond markets propelled record keepers’ record performance last year, but what can the industry do for an encore?
Consultants and researchers acknowledged the markets’ impact last year boosted assets under administration, but they said record keepers will need more consistent sources of future growth.
They predict more consolidation among record keepers, more educating sponsors to adopt auto enrollment, greater emphasis on keeping participants’ assets in plans and accelerated efforts in pursuing startup and smaller DC plans.”
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“The M&A game isn’t over,” said Bill Ryan, partner and defined contribution team leader at NEPC. “I wouldn’t be surprised if three of the top 15 record keepers are acquired in the next 18 months.” He didn’t offer names.
“Organic growth for participants will be modest,” he added. Among the top 15 record keepers by participants in the latest annual Pensions & Investments survey, for example, five had headcounts that were down or flat from the previous survey.
Among record keepers responding to the P&I survey, almost all had higher assets under administration in 2023, but Ryan said he believes this thin-margin business will take its toll on some providers as competition causes a continued whittling of record-keeping fees.
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