P&I at 50
How institutional investing has changed and what's to come
Market veterans say index funds drove the biggest U.S. retirement changes over past half-century, with the rise of private markets investing likewise key.
Private capital investments are no longer alternatives, and in the next 50 years, industry professional expect these asset classes to be essential to portfolios.
Growth in retirement assets
Titans of industry
To mark its 50th anniversary this year, P&I reached out to CalSTRS CIO Christopher Ailman for his thoughts on big challenges to come in the decades ahead.
Ronald Peyton has seen dramatic changes in asset management in his 50 years at consulting firm Callan.
David Bronner, who leads the Retirement Systems of Alabama, shared his insights as he celebrates 50 years as the pension fund’s CEO.
Gretchen Morgenson, who co-authored “These Are the Plunderers,” argues the strategy won’t generate the same returns as in prior years.
Ennis Knupp founder Richard Ennis returns to the intellectual fray, pushing for a major industry rethink on costly alternative exposures.
GMO founder Jeremy Grantham is looking to U.S. venture capital for a lifeline to address “matters of our very survival.”
J. Mark Iwry has worked on nearly every consequential retirement development over the last 25 years, but he says there’s still work to be done.
Robyn Grew on her career leading up to becoming the first female CEO of Man Group.
Alabama pension fund CEO David Bronner, who's been on the job for 50 years, reflects on the future of pension funds.
CalSTRS CIO Chris Ailman on the challenges ahead.
How defined contribution has changed
The retirement industry complains about the onslaught of ERISA lawsuits, but DC sponsors have adjusted to reduce litigation risk.
DC plans may have reached a limit in terms of what they can accomplish to expand coverage.
DB vs. DC assets
Three years after George Floyd was murdered, asset managers see increased workforce diversity, but challenges toward further progress arise.
The state of the economy, 1973 vs. 2023
Percentage of total assets.
|Measure||Oct. 1, 1973||Oct. 2, 2023||Price Return||Total Return||Annualized|
|S&P 500 index||108.21||4,288.39||3863%||16243%||7.6%||10.7%|
|Dow Jones Industrial Average index||948.83||33,433.35||3424%||17494%||7.4%||10.9%|
|10-year Treasury yield||5.93%||4.69%|
|Average sales price of house||$35,900||$495,100||1279%|
|Gallon of gas||$0.36||$3.80|
|Federal funds rate||4.74%||5.38%|
The more things change...
A look back at P&I covers over the years shows that legislation, big deals, market moves and politics snared leading spots on Page One, much like today's.
Sovereign wealth funds will become an increasingly important group to money managers as they continue to grow — particularly in private markets.
Around 90% of India is not covered by retirement plans, and China is facing an aging population that has put pressure on state pension funds.
Sovereign Wealth Funds
Largest Managers 2022
|1||BNY Mellon Investment Mgmt.||$109,369|
|3||Brookfield Asset Mgmt.||$85,527|
|4||State Street Global Advisors||$82,141|
|5||Legal & General Investment Mgmt.||$57,890|
|7||J.P. Morgan Asset & Wealth Mgmt.||$45,689|
|8||Starwood Capital Group||$30,494|
|9||Pathway Capital Mgmt.||$28,937|
|13||Pacific Investment Mgmt. Co.||$23,924|
|14||Northern Trust Asset Mgmt.||$23,880|
|15||Morgan Stanley Investment Mgmt.||$17,220|
In the public interest
The growth in the ETF industry is not expected to slow anytime soon, with further gains expected in fixed income and other corners of the market.
Passive investing has been a dominant theme in the era of easy money, but there are signs markets are shifting to favor active investors.
Change in management fees
10 Largest managers of U.S. institutional assets - then and now
Tax-exempt assets ($ billions)
|1||Morgan Guaranty Trust Co.of New York||$23.6|
|2||Metropolitan Life Insurance Co.||$6.3|
|3||Chase Investors Management Corp. of New York||$6.0|
|4||United States Trust Co. of New York||$5.0|
|5||Fields, Grant & Co.||$4.9|
|6||National Bank of Detroit||$4.0|
|7||Continental Illinois National Bank & Trust Co.||$3.5|
|8||The First National Bank of Chicago||$3.5|
|9||Harris Trust & Savings Bank||$3.3|
|10||T. Rowe Price Assoc. Inc.||$3.0|
|3||State Street Global||$1,188.5|
|5||Geode Capital Mgmt.||$842.7|
|6||T. Rowe Price Associates||$591.6|
|9||Northern Trust Asset Mgmt.||$453.6|
For 50 years, our mission has been to provide the best news and analysis of the institutional investing market. That commitment remains as investing evolves.
Looking back on my 33 years at P&I, I realized that the P&I staff and I had aided and abetted a series of revolutions in the nation’s pension system and the capital markets.
The best of Roger Schillerstrom
A look at some of the best illustrations by P&I's editorial cartoonist over the years.