As fund executives evaluate their defined contribution (DC) administration and recordkeeping profit margins, many are deciding to abandon the business. In fact, the DC administration business, which serves more than 66 million participants in 476,000 plans with a total of $2.15 trillion of assets, has been in a state of continuing contraction.

Over the past several years, as corporate America has been pushing individuals to save in employer-sponsored retirement plans, assets in DC plans have grown tremendously - but many of these accounts are very small, noted Troy Shaver, vice chairman of GoldK, a retirement plan service provider based in Waltham, Mass.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.