The pinnacle of Athene’s mum or dad says the concentrated nature of peculiar U.S. retirement financial savings portfolios makes the thought of rich folks investing in non-public credit score look higher.
Marc Rowan, the CEO of Apollo World Administration, the asset supervisor that acquired full management of Athene in 2022, talked about what he sees as lack of actual diversification in retirement belongings Wednesday, throughout a convention name Apollo held to go over third-quarter earnings with securities analysts.
What it means: You inform your retirement planning purchasers to diversify their portfolios.
Rowan contends that, in actuality, too many individuals are relying an excessive amount of on the efficiency of only a few firms.
Apollo and Athene: Apollo is a New York-based asset supervisor that reported $660 million in internet earnings for the third quarter on $1.3 billion in charge and spread-related earnings and $631 billion in belongings underneath administration.
Athene writes annuities, reinsures annuities for different insurers and assumes pension threat by promoting group annuities to the plan sponsors. It and associated retirement companies operations ended the third quarter with $261 billion in invested belongings.
Rowan on nest eggs: Rowan sees lack of funding diversification as one of many main challenges dealing with retirement savers.
The headwinds embody lack of liquidity within the public bond markets, regulatory pressures which are inflicting banks to lend much less, and the rise of index-based investing, Rowan mentioned.