SAN DIEGO, CA--(Marketwired - Aug 26, 2014) - BrightScope (www.brightscope.com), a leading provider of independent financial information and investment research, today announced the list of industries ranked by average 401k plan rating for those containing more than $100 million in assets.
"It's excellent to see nearly every industry on this list improve their average rating over the past year," said Brooks Herman, Head of Data & Research at BrightScope. "Across the board, it's obvious companies are working to improve the quality of their 401k plans and therefore help employees' secure their financial futures."
Top industries with the highest ranked 401k plans containing more than $100 million in assets:
Industry - Number of Plans Evaluated - BrightScope Rating
1. Law - 192 - 82.60
2. Utilities - 106 - 78.15
3. Mining, Quarrying, and Oil and Gas Extraction - 75 - 77.36
4. Technology - 211 - 75.82
5. Airlines - 55 - 74.96
6. Professional, Scientific, and Technical Services - 191 - 74.76
7. Business and Finance - 435 - 74.38
8. Manufacturing - 1028 - 73.01
9. Automotive - 26 - 71.57
10. Information - 70 - 70.03
11. Wholesale Trade - 139 - 69.99
12. Management of Companies and Enterprises - 133 - 69.48
13. Real Estate and Rental and Leasing - 33 - 68.58
14. Health & Medicine - 256 - 67.02
15. Education - 33 - 66.78
16. Other - 43 - 66.69
17. Construction - 174 - 66.25
18. Transportation and Warehousing - 81 - 65.55
19. Arts & Entertainment - 27 - 64.98
20. Administrative and Support and Waste Management and Remediation Services - 49 - 63.63
21. Agriculture, Forestry, Fishing and Hunting - 10 - 61.60
22. Retail Trade - 170 - 57.22
23. Hotels, Casinos, and Food Services - 37 - 54.61
BrightScope obtains an increasing amount of its data directly from plan sponsors and record keepers, and augments these primary sources with data from publicly available sources such as the Department of Labor and the Securities and Exchange Commission. By analyzing and interpreting this data, BrightScope provides unprecedented transparency into the 401k industry.
The BrightScope Rating was developed by BrightScope, Inc. with the help of leading academics and independent 401k fiduciaries. By analyzing more than 200 individual data points, the BrightScope Rating algorithm calculates a single numerical value for each 401k plan. The data points examined cover broad categories such as total plan cost, company generosity and investment menu quality.
BrightScope has rated nearly 50,000 401k and 403b plans, spanning more than 57 million workers and over $3 trillion in assets. Industry adoption of the BrightScope Rating will lead to more cost-effective plans, increased participation rates, higher employee satisfaction and better outcomes for the 60 million employees who depend on their 401k plan for retirement.
BrightScope is a financial information company that brings transparency to opaque markets through independent research and analysis. Delivered through web-based software, BrightScope data drives better decision-making for individual investors, corporate plan sponsors, asset managers, broker-dealers, and financial advisors. The BrightScope Rating™, developed in partnership with leading independent 401k fiduciaries, reviews more than 200 unique data inputs per plan and calculates a single numerical score which defines plan quality at the company level. In April 2011, the company launched BrightScope Advisor Pages™, the first comprehensive and publicly available directory of financial advisors designed to help consumers discover information and conduct due diligence on wealth management professionals. BrightScope also markets a suite of data analytics software products to Fortune 1000 companies, asset managers, broker-dealers, financial advisors, and other market participants. Public ratings for nearly 50,000 retirement plans as well as rating definitions, criteria and methodologies, and information on more than 680,000 financial advisors and nearly 33,000 active advisory firms are available for free at www.brightscope.com.