Retirement Talk in 401(k) Industry

EXCERPT:

"Just a few years ago... hundreds of firms jumped to offer retirement plans for a range of clients, from large multinational companies to small concerns.... But now, in the wake of recent market volatility, several retirement-plan providers are facing lower revenue.... The rate of growth is slowing and profit margins are shrinking. At the same time, the competition is more intense than ever. As a result, some retirement-plan providers have started reconsidering their strategies in the 401k market."

OTHER POINTS:

-- Merrill Lynch & Co. CFO recently told analysts "that the firm is scaling back parts of its 401k business."

-- United Asset Management Corp. recently announced it was closing UAM Retirement Plan Services, "a wholly owned affiliate that provides bundled retirement-plan services" and plans "to focus just on managing 401k assets."

-- MFS Investment Management... "last month shifted away from servicing retirement plans for smaller companies, primarily because it is so expensive."

For complete text, contact The Wall Street Journal at www.djreprints.com.