The average defined contribution investment-only manager lost an average of 23% in assets under management in 2008 due to stock market turbulence, according to a survey published today by Sway Research.
Best Practices in DCIO Sales and Marketing said the decline in assets, and subsequent management fee revenue, forced a majority of managers to cut sales and marketing budgets for 2009 by an average of 18%.
In a news release about the survey, Chris Brown, principal of Sway Research, said a number of forces have combined to make the market especially challenging in 2009. The rise of target-date funds and increased flows to stable value and cash portfolios, downward pressure on management fees and a lack of activity in terms of changes to DC plan investment options are some of the forces that have hurt business.
The survey was conducted in January and included responses from 17 DCIO asset management companies.