Putnam, Great-West Financial to combine retirement businesses

Combined companies will have $220B in assets; Putnam chief Robert Reynolds named CEO of Great-West Lifeco U.S.

Mar 20, 2014 @ 2:59 pm

By Darla Mercado

retirement, putnam, great-west, robert reynolds
+ Zoom
Putnam's Bob Reynolds will continue to hold his post as CEO of Putnam (Bloomberg News)

Putnam Investments and Great-West Financial have raised their 401(k) plan firepower by combining their retirement businesses.

In addition, Great-West Lifeco Inc., the parent company of both Putman and Great-West Financial, on Thursday announced that Robert L. Reynolds, president and chief executive of Putnam, has been named president and CEO of Great-West Lifeco U.S. He will replace Mitchell T.G. Graye, who is retiring on May 8 after spending more than two decades with Great-West.

Mr. Reynolds will remain CEO of Putnam.

Once Putnam's retirement business is integrated into Great-West's, the combined blocks of business will add up to $220 billion in assets under administration and more than 5 million participants. The integration only affects the retirement business.

Charles P. Nelson, president of Great-West Retirement Services, will oversee the integration, according to Mr. Reynolds, who spoke with reporters on a conference call Thursday. Ed Murphy, head of defined contribution at Putnam Investments, in the meantime, will continue reporting to Mr. Reynolds.

Together, the retirement businesses will tackle plans of all sizes.

“If you look at Great-West Financial today, they're in the 457 space and they are one of the largest providers in that market,” Mr. Reynolds said on the call. “They're in 403(b) and they're certainly a large player in 401(k).” Currently, on the 401(k) side, Great-West works primarily with small to midsize plans.

Putnam, however, works primarily with medium to large retirement plans.

Notably, the integration also pulls together two different disciplines: Great-West is a life insurer, while Putnam is an asset manager. Mr. Reynolds said that the integration is a plum opportunity for collaboration on product innovation, too.

“It's a unique opportunity to best serve the insurance, asset management and retirement clients in the still growing, highly competitive U.S. financial services market,” Paul Mahon, president and CEO of Great-West Lifeco, said on the conference call.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

What is your bold prediction for the future of financial services?

What do you think is next for your business and the industry? We asked advisers to tell us where they were heading in the next five to 10 years. One adviser even expects a Super Bowl ad to raise awareness.

Latest news & opinion

Will Jeffrey Gundlach's Trump-like approach on Twitter work in financial services?

The DoubleLine CEO's attacks on Wall Street Journal reporters is igniting a discussion on what's fair game on social media.

Fidelity wins arb case against wine mogul but earns a rebuke from Finra

In the case of investor Peter Deutsch, Fidelity doesn't have to pay any compensation, but regulator said firm put its interests ahead of his.

Advisers get more breathing room to make Form ADV changes

RIAs can enter '0' in some new parts of the document before their annual filing next year.

Since banking scandal, Wells Fargo advisers with more than $19.2 billion leave firm

Despite a trying year, the firm has said it will sweeten signing bonuses for veteran advisers.

Is LPL's deal sweet enough for NPH's 3,200 reps and advisers?

They will have to decide if the signing package they are being offered by LPL makes sense. A lot is hanging in the balance.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print