Deals & People April 23, 2025

Nomura to Acquire Macquarie’s US and European Asset Management Business

The acquisition, which brings over $180 billion in assets under management, will also give Nomura a wealth management channel in the U.S. 

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Australian financial services giant Macquarie Group Ltd. will sell its U.S. and European asset management business, with a combined $180 billion in assets under management, to Japanese bank and asset manager the Nomura Group, the two companies announced Tuesday, significantly expanding the Japanese firm’s access to U.S. based clients.

The $1.8 billion all-cash transaction is expected to close at the end of the calendar year, subject to regulatory approval. Macquarie will continue to keep its existing asset management business outside of the U.S. and Europe.

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Nomura and Macquarie reported that they will establish a working group to explore potential opportunities for collaboration between the two firms.

Macquarie managed A$916.8 billion ($585.86 billion) in assets, as of September 31, 2024. As of December 31, 2024, Nomura’s investment management division had $584 billion in assets under management. The acquisition will see the firm’s AUM grow to about $770 billion.

“This transaction will accelerate the expansion of our global Investment Management business and will be a significant step in building a truly global franchise with a comprehensive set of solutions to serve investors worldwide,” said Chris Willcox, chairman of Nomura’s investment management division, in a statement.

The acquisition will also give Nomura a wealth management channel in the U.S. The firm will become a U.S. wealth distribution partner for Macquarie, providing access to Macquarie’s alternative investment offerings. 

Approximately 50% of the AUM of the acquired businesses is managed for retail clients. Insurers make up 35% of clients, and other institutional investors account for 15%, according to a statement from Nomura. AUM for U.S. clients represent 90% of the acquired Macquarie business unit’s assets.

Equities make up 50% of the acquired business’ assets, fixed income 40% and multi-asset 10%.

Macquarie Asset Management staff in Europe and the U.S. will join Nomura, including Shawn Lytle, president of Macquarie Funds and head of the Americas; John Pickard, CIO of equities and multi-asset; Greg Gizzi, CIO of fixed income; and Milissa Hutchinson, head of U.S. wealth distribution.

The asset management business that will be acquired by Nomura has approximately 700 combined employees in the U.S.—in Philadelphia and in Overland Park, Kansas—and in Europe—in Vienna and Luxembourg.

“[The acquisition] will be transformational for our investment management division’s presence outside of Japan, adding significant scale in the U.S., strengthening our platform, and providing opportunities to build our public and private capabilities,” said Kentaro Okuda, Nomura’s president and CEO, in a statement. “We are delighted with the prospect of welcoming all 700-plus employees that will be joining the Nomura Group.”

Products & Services April 22, 2025

Comparing Insured and Non-Insured Payout Options

A recent issue brief from the American Academy of Actuaries examines the insured and non-insured options currently available that can be offered through employer-sponsored retirement DC plans.

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Comparing Insured and Non-Insured Payout Options

The following table presents a high-level comparison of the insured and non-insured options that are generally offered through employer-sponsored retirement plans.

*SPIA = Single Premium Immediate Annuity
†DIA = Deferred Income Annuities
‡QLAC = Qualified Longevity Annuity Contracts
GLWB = Guaranteed Lifetime Withdrawal Benefit

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Income guaranteed
for life		 PRODUCT TYPE
Insured Approaches Non-insured Approaches
SPIAs* DIAs† and QLACs‡ GLWBs Systematic Withdrawals
Yes Yes Yes, insurers provide benefits after account balance is depleted No
Liquidity PRODUCT TYPE
Insured Approaches Non-insured Approaches
SPIAs DIAs and QLACs GLWBs Systematic Withdrawals
Pre-income commencement Yes, premium not paid until payout commencement Usually (for plan-selected DIAs only, not QLACs) Yes, account balance
Post-income commencement No No Yes, account balance
Post-retirement death benefit to heirs Premium less benefits paid if “cash refund” feature is selected or any remaining “period certain” payments if that feature is selected (both have a “cost” of lower payouts) Remaining account balance
Downside protection PRODUCT TYPE
Insured Approaches Non-insured Approaches
SPIAs DIAs and QLACs GLWBs Systematic Withdrawals
Pre-income commencement No, in particular, participants are subject to point-in-time interest rate risk, which can be partially mitigated if premium is accumulated over time in a fixed income account that mimics annuity purchase rates Yes Yes, as soon as the “benefit base” is established No, but participants can mitigate downside risk by investing conservatively
Post-income commencement Yes Yes Yes No
Upside potential PRODUCT TYPE
Insured Approaches Non-insured Approaches
SPIAs DIAs and QLACs GLWBs Systematic Withdrawals
Pre-income commencement Yes, premium not paid until payout commencement No, guaranteed income locked in at time of purchase Yes, fund returns if the base product is a VA, market index if FIA; insurer may limit upside Yes
Post-income commencement No No Account value can grow with fund returns (VA) or market index (FIA), and guaranteed lifetime withdrawals under some designs Yes
Fees PRODUCT TYPE
Insured Approaches Non-insured Approaches
SPIAs DIAs and QLACs GLWBs Systematic Withdrawals
No explicit fee; instead the payout rate reflects the cost to provide the lifetime income guarantee There is an explicit or implicit product fee/cost (or both) that lowers returns Investment and administration fees to maintain the account—usually percentage of balance—but generally no fee if participant does their own systematic withdrawal
Simplicity PRODUCT TYPE
Insured Approaches Non-insured Approaches
SPIAs DIAs and QLACs GLWBs Systematic Withdrawals
Easy to understand Relatively simple Can be complex Range from easy to understand to complex

Source: American Academy of Actuaries, "Decumulation Strategies: Creating Lifetime Income from Defined Contribution Plans"

More on this topic:

What to Know About Adding Income to a Plan Lineup
Does the 4% Rule Still Stand?
Understanding and Evaluating Retirement Income Solutions
Beyond the Annuity Puzzle: Rewiring the Psychology of Lifetime Income

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