Individual Touch Still Matters in 403(b) Market, Study Says

Individualized transactions, and advisors focused on 403(b)s, remain central to the 403(b) market, says a recent report.

In “Targeting Opportunities for Managed Accounts in Defined Contribution,” Cerulli Associates says that professionals that offer expertise and specialization figure prominently in the 403(b) market, according to InsuranceNewsNet.

Advisors that are focused on 403(b)s and boutique defined contribution consultants together exert strong influence several market segments. Cerulli says that together, their share of the influence professionals exert in various 403(b) markets is as follows:

• K-12 market: 75%;

• health care market: 72%;

• churches/charities/research institutions: 63%; and

• higher education market: 51%.

Advisors focused on 403(b)s are especially influential in the K-12 and churches/charities/research institutions markets; they have greater influence in those segments than any other player in the industry.