Record keeper consolidation has slowed if measured by the number of deals. If measured by participants or assets, it will be a banner year just with the sale of The Hartford to MassMutual alone.
The 2012 defined contribution consolidation list (see p. 19) details significant deals since 1999 that refute many experts’ predictions of even greater attrition. There is no doubt that the DC record keeping industry is bloated, with 46 national firms and only 19 in “401(k) heaven” as measured by assets and participants under management. Will record-keeper consolidation pick up and will the consolidation bug hit DCIO (investment only) firms as well as broker dealers and plan advisers? What are the drivers of consolidation and what are the effects?
