Retirement Fund Assets Grew 8% from 2014 to $19.1 Trillion in 2016

Across DB and DC plans, retirement assets total $19.1 trillion, according to data from a Federal Reserve report on  DB and DC asset holdings and flows.

Across public and private defined benefit (DB) and defined contribution (DC) plans, total assets grew 8% from $17.6 trillion in 2014 to $19.1 trillion in 2016, according to data from The Federal Reserve.

Total financial assets in both public and private DB pension plans were $12.4 billion in 2016, up 8% from $11.5 trillion in 2014 Total financial assets in DC plans were $6.7 trillion in 2016, up 10% from $6.1 trillion in 2014.

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Private DB pension plan assets in 2016 were $3.3 trillion, up 3% from $3.2 trillion in 2014. Private DC plan assets in 2016 were $5.7 trillion, up 9.6% from $5.2 trillion in 2014.

In terms of pension funds’ biggest asset class holding in 2016, the largest was corporate equities, $4.8 trillion, followed by  debt securities and mutual funds, at $3.9 trillion for both asset classes. Pension funds’ fourth biggest holding in 2016 was Treasury securities, at $2.3 trillion.

Federal government DB plan assets were  $3.4 trillion, while federal government DC plan assets in 2015 were much less, at $466 billion. State and local DB plan assets in 2016 were $5.6 trillion, and state and local DC plan assets were $490 billion.

Flows

In terms of flows by asset class, private and public DB plans’ biggest purchase in 2016 were debt securities, coming in at $190 billion. This was followed by Treasury securities ($120 billion) and corporate and foreign bonds ($61 billion).

For private DC plans, the most inflows in 2016 were to mutual funds ($24 billion), followed by debt securities ($22 billion) and corporate and foreign bonds ($12 billion). For federal government DC plans, their biggest purchases in 2016 were debt and Treasury securities (both at $16 billion) and assets in the Thrift Savings Plan ($12 billion). The biggest purchases of state and local DC plans in 2016 were: unallocated insurance contracts ($8 billion) and miscellaneous assets ($7 billion).

Retirement Industry People Moves

T. Rowe Price Hires Head of Large Retirement Sales; PanAgora Asset Appoints Strategic Relationship Manager; and Guardian Hires Chief Communications Officer

T. Rowe Price Hires Head of Large Retirement Sales

Lee Stevens will join T. Rowe Price on March 31 as head of mega and large market retirement sales, a newly created role. Stevens will be tasked with leading the firm’s efforts to expand its business in this key segment of the U.S. retirement plan marketplace. 

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She is experienced in sales, client satisfaction, distribution strategy, product innovation, and talent development. Prior to joining T. Rowe Price, Stevens worked at JPMorgan Chase & Co. and its predecessor firms from 1987 to 2014. She was granted increasing levels of responsibility in JP Morgan’s retirement plan business, including acting as head of sales and client retention. 

Stevens joined Empower Retirement when it acquired JP Morgan Retirement Plan Services’ large-market recordkeeping unit and was responsible for the stewardship of many of the firm’s new and legacy JP Morgan clients. In her most recent position, Stevens served as head of sales for Great-West Investments and was a member of the firm’s executive leadership team. 

NEXT: PanAgora Asset Appoints Strategic Relationship Manager

PanAgora Asset Appoints Strategic Relationship Manager 

Vanessa Sea has joined the distribution team at PanAgora Asset Management. Serving as a strategic relationship manager, she will focus on consultant relations, outsourced chief investment officer (OCIO) services and hedge fund marketing practices. Lisa Mahoney and Paul Damplo will join her in these efforts.

Sea formerly worked at PT Asset Management (PTAM), where she spent the last three years developing the firm's institutional credit hedge fund business. Prior to that, she worked in consultant relations at William Blair in Chicago and with Neuberger Berman. She earned her bachelor’s degree from Indiana University and her master’s degree from the University of Chicago Booth School of Business.

"We are delighted to welcome Vanessa to PanAgora,” says Robert Job, CFA, head of Global Distribution at PanAgora. She is great addition to our team with an interesting background and a proven record. We look forward to introducing Vanessa into the marketplace. Her diverse investment experience, relationships, and excellent academic record are positive contributions to our firm.”

NEXT: Guardian Hires Chief Communications Officer

Guardian Hires Chief Communications Officer

The Guardian Life Insurance Company of America has named Sherry Pudloski as chief communications officer. She will be responsible for Guardian’s brand management as well as internal, external and digital communications. With more than 20 years of experience in the industry, she is versed in brand communications, reputation management, and corporate social responsibility.

Pudloski joins Guardian from Pfizer, where she was the head of reputation, policy, and enterprise communications. She launched the company's first corporate advertising campaign in more than a decade “to share its commitment to science and cures.” Prior to her seven years with Pfizer, she was an executive director of strategic planning and communications at Novartis Pharmaceuticals.

“Sherry is an accomplished and respected communications professional, and we are delighted that she will help lead Guardian’s corporate communications strategy,” says Deanna Mulligan, Guardian’s president and chief executive officer. “As a member of Guardian’s leadership team, Sherry will be instrumental in finding new, creative, and effective ways of communicating and executing our customer-focused vision.”

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