Mark Nachman is Global Head of Wealth and Wealth Management at Goldman Sachs.
CNBC
goldman sachs The company announced Thursday that it has been awarded contracts to manage retirement assets totaling $70 billion. verizon communications and lockheed martin, This is one of the big recent announcements in the fast-growing corporate investment outsourcing market.
Goldman said its obligations include about $30 billion in Verizon and Lockheed Martin pension assets and about $40 billion in Verizon’s defined contribution retirement assets, typically 401(k)s.
The move highlights how some of the nation’s largest employers are increasingly delegating responsibility for managing retirement assets to outside firms such as Goldman, as portfolios become more complex and require expertise across public and private markets.
Competition in the multi-trillion dollar retirement asset market is dominated by Goldman, black rockRussell Investments, mercerbecause long-term institutional obligations provide stable fee income.
By growing the business, Goldman hopes to increase its share of revenue, which is considered stable and recurring, unlike more volatile trading and investment banking operations.
“Large plan sponsors are consolidating their responsibilities with one partner with the investment expertise and deep platform to manage their bespoke needs,” Mark Nachman, Goldman’s global head of asset and wealth management, said in a statement.
Goldman’s outsourced chief investment officer business had approximately $480 billion in assets as of March 31, and the firm’s broad asset and wealth management division oversees approximately $3.7 trillion worth of investments.
