How institutional investing has changed and what's to come
Indexing, private markets considered key disrupters of past 50 years
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.
How private market asset classes are changing the game in investment portfolios
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
CalSTRS Ailman: Energy transition a ‘massive’ undertaking for investors worldwide
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.
Minimizing risk over chasing returns: Insights from consulting veteran Ronald Peyton
Ronald Peyton has seen dramatic changes in asset management in his 50 years at consulting firm Callan.
Alabama pension fund veteran David Bronner opens up about his 50-year reign as CEO
David Bronner, who leads the Retirement Systems of Alabama, shared his insights as he celebrates 50 years as the pension fund’s CEO.
Private equity is past its peak, warns Pulitzer Prize-winning author
Gretchen Morgenson, who co-authored “These Are the Plunderers,” argues the strategy won’t generate the same returns as in prior years.
Consulting titan Richard Ennis warns of blind faith in alternatives
Ennis Knupp founder Richard Ennis returns to the intellectual fray, pushing for a major industry rethink on costly alternative exposures.
Jeremy Grantham's vision for saving the world through impact investing
GMO founder Jeremy Grantham is looking to U.S. venture capital for a lifeline to address “matters of our very survival.”
The 401(k) revolution: J Mark Iwry's mission to simplify retirement planning
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.
In conversation...
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
How retirement security litigation has impacted the defined contribution landscape
The retirement industry complains about the onslaught of ERISA lawsuits, but DC sponsors have adjusted to reduce litigation risk.
401(k) plans leading the way toward retirement security, but room for growth, experts say
DC plans may have reached a limit in terms of what they can accomplish to expand coverage.
Europe's defined contribution market poised for a boom
Government reforms, the growth of ESG and bigger savings pots have Europe's defined contribution market poised for significant growth.
DB vs. DC assets
ESG
What's next for ESG investing?
Materiality will be the next ESG challenge for money managers and asset owners.
The slow march toward progress of diversity in asset management
Three years after George Floyd was murdered, asset managers see increased workforce diversity, but challenges toward further progress arise.
Closing the 'role gap'
Asset management firms are seeking ways to ensure a strongly diverse pipeline of workers for the coming years.
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% | ||||
| GDP (billions) | 1,434 | 27,063 | 1787% | |||
| Average sales price of house | $35,900 | $495,100 | 1279% | |||
| Unemployment rate | 4.8% | 3.8% | ||||
| Gallon of gas | $0.36 | $3.80 | ||||
| Federal funds rate | 4.74% | 5.38% | ||||
2023 GDP is as of Q2; 1973 GDP is as of Q3. house - Q2 2023
Source: Bloomberg, Federal Reserve, Department of Energy. U.S. Census Bureau
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.
Global outlook
Soverign wealth funds: New titans of global finance
Sovereign wealth funds will become an increasingly important group to money managers as they continue to grow — particularly in private markets.
China, India face daunting challenge to grow retirement security amid demographic, cultural shifts
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
Asset Growth
Largest Managers 2022
U.S. millions
| Rank | Manager | Assets |
|---|---|---|
| 1 | BNY Mellon Investment Mgmt. | $109,369 |
| 2 | BlackRock | $98,813 |
| 3 | Brookfield Asset Mgmt. | $85,527 |
| 4 | State Street Global Advisors | $82,141 |
| 5 | Legal & General Investment Mgmt. | $57,890 |
| 6 | Franklin Templeton | $51,344 |
| 7 | J.P. Morgan Asset & Wealth Mgmt. | $45,689 |
| 8 | Starwood Capital Group | $30,494 |
| 9 | Pathway Capital Mgmt. | $28,937 |
| 10 | Ares Mgmt. | $28,022 |
| 11 | Man Group | $27,035 |
| 12 | StepStone Group | $25,581 |
| 13 | Pacific Investment Mgmt. Co. | $23,924 |
| 14 | Northern Trust Asset Mgmt. | $23,880 |
| 15 | Morgan Stanley Investment Mgmt. | $17,220 |
P&I Research Center
In the public interest
How Washington is reshaping retirement security
Five decades of retirement legislation illuminate the nation’s shift to defined contribution plans from pension funds.
Long live public pension funds!
U.S. public pension plans should continue to muddle through and avoid the fate of corporate pension plans, experts say.
Corporate DB
Public DB
ETFs, Active/passive
How the ETF industry is reshaping the investment landscape
The growth in the ETF industry is not expected to slow anytime soon, with further gains expected in fixed income and other corners of the market.
Rising rates, market volality bring active investing back in vogue
Passive investing has been a dominant theme in the era of easy money, but there are signs markets are shifting to favor active investors.
Change in management fees
10 Largest managers of U.S. institutional assets - then and now
Tax-exempt assets ($ billions)
1974
| Rank | Manager | Assets |
|---|---|---|
| 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 |
As of Dec. 2, 1974
Source: Pensions & Investments
2022
| # | Manager | Assets |
|---|---|---|
| 1 | Vanguard Group | $2,069.7 |
| 2 | BlackRock | $1,748.4 |
| 3 | State Street Global | $1,188.5 |
| 4 | Fidelity Investments | $1,063.1 |
| 5 | Geode Capital Mgmt. | $842.7 |
| 6 | T. Rowe Price Associates | $591.6 |
| 7 | Nuveen | $548.1 |
| 8 | Capital Group | $513.4 |
| 9 | Northern Trust Asset Mgmt. | $453.6 |
| 10 | Prudential Financial | $446.1 |
As of Dec. 31, 2022
Source: Pensions & Investments
Editorial
As investing has evolved over 50 years, so has P&I’s coverage
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.
P&I at the forefront of the biggest institutional investing trends of the past 50 years
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.
Putting pen to paper P&I cartoonist brings finance to life
P&I's editorial cartoonist for over 40 years, Roger Schillerstrom, escaped a career in law school to pursue drawing.
The best of Roger Schillerstrom
A look at some of the best illustrations by P&I's editorial cartoonist over the years.
