Defined contribution retirement programs have seen rapid expansion over the past decade. But, defined contribution business will be undergoing a slowdown, as alternative investment options increase, market returns decline, and retiring baby-boomers begin to remove assets, according to a study released last week by Strategic Insight, a mutual fund research and consulting company in New York, and NewRiver, an online financial service provider in Andover, Mass.
The 200-page report, "The Defined Contribution Market: Strategies and Opportunities for an Evolving Future," is the most comprehensive study on the defined contribution market in over a decade, according to the companies. The report discusses mutual fund growth in defined contribution plans and challenges companies in the defined contribution market have to contend with, and recommends strategies for mutual fund companies, distributors, and other financial service organizations. The two companies collaborated on the project for about six months, according to Avi Nachmany, director of research at Strategic Insight.