Data & Research December 20, 2012

Retirement Assets Reach $19T

Total U.S. retirement assets reached $19.4 trillion in third-quarter 2012, according to the Investment Company Institute (ICI).  
Reported by

As of September 30, retirement assets were up 3.5% from the $18.7 trillion recorded on June 30. ICI reports that the increase in retirement assets can be attributed to the rise in corporate equity values—the S&P 500 total return index grew by 6.4% in the third quarter.

At the end of the third quarter, retirement savings made up 36% of all household financial assets. Individual retirement accounts (IRAs) swelled 4.3% since the end of the second quarter to reach $5.3 trillion, 46% ($2.4 trillion) of which was invested in mutual funds.

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Employer-based defined contribution (DC) plans accounted for $5.0 trillion in assets, an increase of 3.9% in the third quarter, and 401(k) plans totaled $3.5 trillion at the end of September. Mutual funds managed $2.8 trillion (57%) of assets kept in 401(k), 403(b) and other defined contribution plans. As of September 30, target date mutual fund assets totaled $460 billion, an increase of 7.7%, and 91% of target date mutual fund assets were held through DC plans and IRAs.

Government pension plan assets—including federal, state and local plans—totaled $4.8 trillion as of September 30, a 3.1% rise from the end of June. Private-sector defined benefit (DB) plans accounted for $2.6 trillion in assets, and annuity reserves outside of retirement accounts held $1.7 trillion.

The quarterly retirement data tables are available at “The U.S. Retirement Market, Third Quarter 2012.”

Products December 20, 2012

Gemini, Arrow Partner in ETF Trust Launch

Gemini Fund Services LLC and Arrow Investment Advisors LLC have teamed to launch the Northern Lights ETF Trust.
Reported by

Northern Lights is a shared fund trust designed to bring exchange-traded funds (ETFs) to market, with operational and cost efficiencies for advisers.

The trust will provide benefits to advisers similar to Gemini’s shared fund trusts for mutual funds. It comprises independent ETFs managed by separate investment advisers. Like Gemini’s shared mutual fund trusts, the Northern Lights Trust will provide ETF advisers with operational efficiencies and economies of scale they would not be able to achieve on their own.

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“The Northern Lights ETF Trust will provide advisers with a complete suite of tools and support to overcome obstacles to market entry and bring their ETFs to investors,” said Andrew Rogers, chief executive of Gemini.

Gemini and Arrow will partner with other advisers to create additional ETFs within Northern Lights.

Gemini Fund Services is an asset management firm specializing in tactical and alternative investments. Arrow Investment Advisors is the adviser to Arrow Funds and ArrowShares.

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