Data & Research July 2, 2012

DC Assets Fastest Growing Among Employer-Sponsored Plans

Assets in employer-sponsored retirement plans, IRAs and annuities totaled $17.9 trillion at year-end 2011, up slightly from 2010, according to the Investment Company Institute (ICI).
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The largest components of retirement assets were IRAs and employer-sponsored defined contribution (DC) plans, holding $4.9 trillion and $4.5 trillion, respectively, at year-end 2011. Other employer-sponsored pensions include private-sector defined benefit (DB) pension funds ($2.4 trillion), state and local government employee retirement plans ($3.0 trillion), and federal government plans—which include both federal employees’ DB plans and the Thrift Savings Plan ($1.5 trillion). In addition, there were $1.6 trillion in annuity reserves outside of retirement plans at year-end 2011.   

The 2012 edition of ICI’s Fact Book says 69% of U.S. households (or 82 million households) reported that they had employer-sponsored retirement plans, IRAs, or both in May 2011. Sixty-one percent of U.S. households reported that they had employer-sponsored retirement plans—that is, they had assets in DC plan accounts, were receiving or expecting to receive benefits from DB plans, or both. Thirty-nine percent of households reported having assets in IRAs. Thirty-one percent of households had both IRAs and employer-sponsored retirement plans.   

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Ownership of IRA and DC plan assets has become more common with each successive generation of workers. This can be seen by comparing the ownership rates of households grouped by the decade in which the household heads were born. At any given age, younger households have had higher IRA and DC plan ownership rates over time. For example, in 2011, when they were 51 to 61 years of age, 71% of households born in the 1950s owned IRAs or DC plan accounts. By comparison, households born a decade earlier had a 66% ownership rate when they were 51 to 61 in 2001.   

At younger ages, the differences between birth cohorts are even greater; 71% of households with heads born in the 1970s held assets in IRAs or DC plan accounts in 2011 when they were ages 31 to 41, while 54% of households born in the 1950s owned IRAs or DC plan accounts in 1991, when they were ages 31 to 41.  

Assets in employer-sponsored DC plans have grown more rapidly than assets in other types of employer-sponsored retirement plans over the past quarter century, increasing from 27% of employer plan assets in 1985 to 40% at year-end 2011. With $3.1 trillion in assets at year-end 2011, 401(k) plans held the largest share of employer-sponsored DC plan assets. 403(b) plans and 457 plans held another $941 billion in assets. The remaining $520 billion in DC plan assets was held by other DC plans without a deferral feature.  

The 2012 Investment Company Institute Fact Book is here.  

 

Deals & People July 2, 2012

Performance Trust Names Caisse Senior Portfolio Manager

Bryan P. Caisse, whose background is in mortgage-backed and fixed-income portfolio management, joined Performance Trust Investment Advisors LLC (PTIA) as senior portfolio manager.
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Caisse will be responsible for running a mortgage-backed, fixed-income portfolio and help oversee the risk of the portfolios for PTIA while executing the company’s current business strategy, including raising additional assets and building out product lines. PTIA manages more than $480 million in assets as of May 31. He will team up with President Douglas Rothschild and Chief Investment Officer Peter Cook, who manages the investment teams at PTIA, a sister company of Performance Trust Capital Partners LLC.

Caisse has more than 21 years of experience in financial services. From 2008 to the present, he was the president of Huxley Capital Management in New York, a fixed-income hedge fund. From 1997 to 2007, Bryan was the senior portfolio manager at West Side Advisors, an SEC-regulated mortgage-backed securities hedge fund in New York with multiple billions of assets under management. From 1994 to 1997, he was the senior portfolio manager and managing director at Bear Stearns Investment Advisors. From 1991 to 1994, he was a managing director in the institutional mortgage sales division at Bear Stearns. Before joining Bear Stearns, Bryan was a Navy lieutenant, and the weapons officer on the nuclear submarine USS John Marshall.

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Caisse holds a bachelor’s of science in mathematics from the United States Naval Academy. He graduated from the U.S. Navy’s Nuclear Power School as a nuclear engineer and attended New York University’s Stern School of Business MBA program.

 

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