2005 League Tables - Capital Group Tops Better-Known Names

Capital Group Companies, whose largest components are its American Funds and Capital Guardian Trust Co. units, took the top spot in DCN's annual ranking of defined contribution asset managers by accounts won from U.S. plans with 42 net, new mandates. Bond management giant PIMCO came in at a not-so-close second with 20, followed by T. Rowe Price with a dozen. Better known names such as Fidelity and Barclays Global Investors garnered seven each to earn eighth place. Last year, Barclays placed first in mandates gained and Fidelity was second and Capital Group did not even make the top 10. Lord, Abbett & Co. dropped from third to tie State Street Global Advisors and Dodge & Cox. All three gained four accounts, putting them out of the top ten, whereas last year Lord, Abbett and Dodge & Cox were ranked third and fifth, respectively.

The bottom five were all firms that had been touched by the mutual fund scandals that broke in 2003. Janus, down by 23 accounts, took the biggest hit, followed by Putnam Investments (27), INVESCO (19) and Strong Capital Management (16). Janus, Putnam and INVESCO retained their places at the bottom, though last year Lazard Asset Management and John Hancock, both of which were down two mandates, were just ahead of them. Strong, meanwhile, fell from the top third of firms, after ranking number 26 last year it went to 107. MFS fell even further, from number eight to number 106.

Among the top five firms, the total number of accounts gained was 96. Among the five firms that lost the most, the total was 104. That could point to a near-saturated market in which one firm's losses are another's gain.

 

BISYS Tops Recordkeepers

Fidelity was pushed back to second place this year by BISYS Group, which tacked on $80 billion in recordkeeping assets. JPMorgan Retirement Plan Services shot all the way from number 19 to number three. Nationwide Retirement Solutions had the fourth spot, while the The Vanguard Group came in at number five. Some of the big accounts won were Delaware Investments, which outsourced its recordkeeping to BISYS, and the University of California Retirement System, which went to Fidelity, adding $8.4 billion to the firm's recordkeeping assets.

Merrill Lynch lost $2.3 billion this past year when it was dropped by Sun Microsystems in November, putting it at the bottom of the rankings and boosting J.P. Morgan. Merrill was followed by PNC Advisors, MetLife and Union Bank of California. Some losses came as the result of firms exiting the business--Aon Consulting finished fifth from last, but the firm exited the recordkeeping business entirely last year.

 

Fidelity Boasts Best Bundling Gains

It's another first-place year for Fidelity, which garnered $8.6 billion in bundled assets in 2004. JPMorgan Fleming Asset Management followed with $2 billion. Nationwide Retirement Solutions, MassMutual Retirement Services and The 401(k) Company followed. MassMutual picked up more accounts--52--than any of the others in the top five, pointing to a shift to smaller individual plans. The average account won for MassMutual was $26 million, compared with $1.2 billion for Fidelity. Seventh-place Vanguard Capital had the second-largest average, at $800 million, while Nationwide came in at $650 million. MassMutual gained little, moving up only one spot and displacing The 401(k) Company, which slipped one.

Some of the big shifts in ranking were Prudential Investments, which fell from third place last year to 21st. Diversified Investment Advisors fell to 17th place from second. Nationwide had one of the biggest jumps; the firm came in 32nd last year.

In the losses column, the leaders were Putnam, Hewitt Associates, The Bank of New York, American Express Retirement Services and AMVESCAP Retirement. Putnam's losses of $1.2 billion are in part due to the mutual fund scandals, which came to light in 2003 and had ripple effects that lasted through 2004, as many sponsors dropped their accounts over the spring and summer. Among them were Hanford Site and Koch Industries, both of which dropped Putnam in July. BNY, which lost a $1 billion account from Pearson, Inc., had the largest average asset loss.

2004 Manager Ranking by Accounts Gained
		Net	Net
Rank	Manager	Count	Amt.
11	Capital Group Companies	7	42
2	PIMCO	2,795	20
3	T. Rowe Price Associates	-	12
4	Vanguard Group	184	11
4	Vanguard Capital	-	11
6	Oppenheimer Capital	-	9
7	Artisan Partners	-	8
8	Barclays Global Investors	47	7
8	Fidelity Investments	1	7
8	Royce & Associates	-	7
11	American Funds & Capital Research	-	6
11	FTI Institutional	-	6
13	Mellon Financial	1,272	5
13	AMR Investment Services	-	5
13	Calamos Asset Management	-	5
13	Hotchkis and Wiley Capital Mgmt.	-	5
17	Dodge & Cox	-	4
17	State Street Global Advisors	-	4
17	Lord Abbett & Company	-	4
20	AIG VALIC	80	3
20	Ariel Capital Management	18	3
20	Diversified Investment Advisors	-	3
20	Charles Schwab & Company	-	3
20	Citistreet	-	3
20	William Blair & Co	-	3
26	Northern Trust Global Investments	2,900	2
26	BNY Asset Management	2,000	2
26	GE Asset Management Incorporated	905	2
26	New Amsterdam Partners	160	2
26	ABN AMRO Asset Management	6	2
26	FleetBoston Financial	-	2
26	Calvert Group	-	2
26	Oakmark	-	2
26	Zurich Scudder Investments	-	2
26	Thornburg Investment Management	-	2
26	Julius Baer Investment Management	-	2
26	ING Financial Services	-	2
38	Fiduciary Capital Management	580	1
38	Marsico Capital Management	237	1
38	Smith Breeden Associates	170	1
38	New York Life Investment Management	19	1
38	Chase Investment Counsel Corp.	10	1
38	Seneca Capital Management	10	1
38	Suncoast Equity Management	6	1
38	Goldman Sachs Asset Management	-	1
38	Delaware Investment Advisors	-	1
38	ABC Financial Center	-	1
38	Dimensional Fund Advisors	-	1
38	Harbor Capital Management Co.	-	1
38	Equitable Asset Management	-	1
38	Galliard Capital Management	-	1
38	Davis Selected Advisers	-	1
38	Fifth Third Bank	-	1
38	Financial Directors	-	1
38	Eaton Vance Management	-	1
38	Baron Capital Management	-	1
38	AIG Global Investment Group	-	1
38	Cramer Rosenthal McGlynn	-	1
38	Brandes Investment Partners	-	1
38	Bridgewater Associates	-	1
38	Horace Mann	-	1
38	Third Avenue Management	-	1
38	Oberweis Asset Management	-	1
38	Pioneer Investment Management	-	1
38	SEI Investments	-	1
38	Neuberger Berman LLC	-	1
38	Touchstone Investments	-	1
38	Turner Investment Partners	-	1
38	Wachovia Retirement Services	-	1
38	Wellington Management Co.	-	1
38	Wells Fargo Bank	-	1
38	Meridian Investments	-	1
38	Lazard Asset Management	-	1
38	Meridian Capital Partners	-	1
38	Morgan Stanley Investment Mgmt.	-	1
38	INTECH	-	1
77	Great-West Life & Annuity	-	-
77	AIM Fund Management	-	-
77	Hartford Life	-	-
77	Van Kampen American Capital	-	-
77	Lincoln Financial Group	-	-
77	Merrill Lynch Investment Managers	-	-
77	Credit Suisse Asset Management	-170	-
84	Jennison Associates	-	-1
84	Fred Alger Management	-	-1
84	Liberty Ridge Capital	-	-1
84	American Express Retirement Services	-	-1
84	Munder Capital Management	-	-1
84	Deutsche Asset Management	-	-1
84	Babson Capital Management	-	-1
84	PBHG	-	-1
84	Brazos Mutual Funds	-	-1
84	Managers Funds	-	-1
84	Seligman Henderson	-	-1
84	Skyline Asset Management	-	-1
84	Davis Funds	-	-1
84	Bank of America	-	-1
84	Cohen & Steers Capital Management	-	-1
84	Waddell & Reed Asset Management	-	-1
84	Ashland Management	-30	-1
101	Alliance Capital Management	-	-2
101	MetLife	-	-2
103	JPMorgan Fleming Asset Management	-	-3
103	Prudential Investments	-	-3
105	American Century Investment Management	-	-4
106	MFS Institutional Advisors	-168	-9
107	Strong Capital Management	-	-16
110	INVESCO	-1,200	-19
108	Putnam Investments	-80	-27
109	Janus Capital Corporation	-16	-33

2004 Bundled Ranking by Assets Gained
		Net	Net
Rank	Manager	Count	Amt.
1	Fidelity Investments	7	8,636
2	JPMorgan Fleming Asset Mgmt.	4	2,000
3	Nationwide Retirement Solutions	3	1,950
4	MassMutual Retirement Services	52	1,372
5	The 401(k) Company	2	850
6	Vanguard Capital	1	800
7	New York Life Investment Mgmt.	5	374
8	Citistreet	-	320
9	Wells Fargo Bank	3	299
10	Schwab Institutional	1	280
11	Mellon Financial	-1	206
12	Vanguard Group	1	200
13	Principal Global Investors	1	125
14	Charles Schwab & Co.	2	121
15	National Deferred Compensation	1	86
16	T. Rowe Price Associates	4	65
17	Diversified Investment Advisors	4	63
18	Merrill Lynch Investment Managers	1	50
19	Swerdlin & Company	1	49
20	Banc of America Capital Mgmt.	1	35
21	Prudential Investments	1	34
22	Lincoln National Life Insurance	1	25
23	Lincoln Financial Group	1	12
24	GE Asset Management Inc.	2	8
25	ABN AMRO Asset Management	2	6
26	AIG VALIC	-1	-
27	First National Bank	-1	-
28	ING Financial Services	-1	-
29	Milliman USA	-1	-
30	PNC Advisors	-1	-
31	UMB Bank	-1	-
32	Union Bank of California	-1	-
33	Wachovia Retirement Services	-1	-8
34	U.S. Bank	-	-19
35	Deutsche Asset Management	-1	-20
36	Equitable Asset Management	-1	-25
37	ICMA Retirement Corp.	-2	-90
38	Strong Capital Management	-3	-93
39	MFS Institutional Advisors	-	-95
40	Stanley, Hunt, Dupree & Rhine	-1	-134
41	Great-West Life & Annuity	-1	-160
42	Northern Trust Global Investments	-1	-240
43	AMVESCAP Retirement	2	-264
44	American Express Retirement Services	-1	-301
45	Bank of New York (The)	-1	-1,000
46	Hewitt Associates	-2	-1,490
47	Putnam Investments	-3	-1,526