KNOWLEDGE CENTER

Knowledge Center Archive

Dec
31
2008

Measuring DCIO Profitability

By SEI Knowledge Partnership

Strategy Brief: DCIO Market, Part IV: Measuring DCIO Profitability (PDF, 5 pages, 102 KB)

This Strategy Brief is the final in our series of insights regarding the defined contribution investment only (DCIO) market opportunity for investment managers. In our first Strategy Brief, Sizing Up the DCIO Market Opportunity, we examined the DCIO market opportunity. In the second, Staffing the DCIO Sales Effort, we examined the requirements for establishing a sales effort and distribution team to gather DCIO assets. In the third, DCIO Product Trends, we examined the assets classes and product structures in demand, impact of regulations on the DCIO marketplace, and the importance of platform placement in gathering DCIO assets.

In this brief, we benchmark profitability, review sources of margin pressure, and examine payments to defined contribution recordkeepers.

Key Topics Examined

  • Benchmarking DCIO profitability
  • Margin pressure sources
  • Payments to defined contribution recordkeepers