Latest news with #GreatGrayTrust
Yahoo
24 minutes ago
- Business
- Yahoo
Why BlackRock is reportedly making a private asset 401(k) push
BlackRock (BLK) is reportedly offering private market data to a Great Gray Trust 401(k), according to The Wall Street Journal. Great Hill Capital chairman and managing member Thomas Hayes explains why the asset manager is making this shift. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here. BlackRock, the world's largest asset manager, plans to provide public and some private data for a 401k target date fund offered by Great Gray Trust, that's according to the Wall Street Journal. This comes as BlackRock is pushing to bring retail investors into the private market with its own funds becoming available for 401k plans starting the first half of 2026. I still have Thomas Hayes, Great Hill Capital chairman and managing member with me here. And as we're taking a look at shares of BlackRock, they're up by about 1% here on the day. Is this really expected to move the dial longer term here? Why does it make sense for BlackRock to do this? Yeah, I I think they're doing it because they can. Okay? It's a huge market. The idea is to democratize private equity, but you see they follow the trends. You know, first, Larry Fink said, uh, Bitcoin was no good, and then the thing took off, and then he started offering it to the public with the ETFs, etc. So, I I do think that there is going to be a place. This is going to be promoted by a lot of financial advisors. This is going to be a part of the portfolio. The beauty of private equity and private credit, which has become so popular, is that you have, uh, no mark-to-market. So it's perceived low volatility because they mark the assets, what we used to say during the Great Financial Crisis, mark to make believe or mark to whatever. And you never really see a mark until the asset is worth zero until it's fully marked down. So, in a bull market like this, everything's marked up. Everyone's happy. There's no volatility. You don't see that daily volatility. Retail loves that. Institutions, institutional consultants love not having the volatility. They love their sharp ratios when they come in with the 25-year-old with their clipboard. Uh uh, but when you take the marks, the marks are big. So I I think there's going to be a place for this in in a lot of 401Ks, and and for a lot of retail investors are going to try their hand. But as you move into a recessionary type of period, these are the assets that you want to be careful of. Yeah, I was taking a look at one of the charts from Torsten Slok, Apollo Chief Economist, saying private equity as a percentage of public equity market 2003, 3.8%, 2024, 8.8%. That's some of the growth here that we've seen. Tom, it's been great to have you here on set with us. Thomas Hayes, who is, uh, of Great Hill Capital and taking some time here in New York with us. Thank you so much. Thanks for having me. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Upturn
9 hours ago
- Business
- Business Upturn
BlackRock to include private assets in retirement plans by 2026: Report
BlackRock, the world's largest asset manager, is set to introduce private market investments like private equity and private credit into its retirement plans, marking a significant shift in how retirement portfolios are structured, according to a Reuters report. The New York-based firm announced plans to launch a target-date retirement fund in the first half of 2026. This age-based investment vehicle will combine traditional asset classes like stocks and bonds with private market allocations for the first time. The move aims to enhance returns while diversifying retirement portfolios. According to a research paper released by BlackRock, the new retirement funds will include a 5% to 20% allocation to private assets, depending on the investor's age. The firm estimates this could boost returns by an additional 50 basis points annually. BlackRock's long-term portfolio outlook anticipates a 50% allocation to public equities, 30% to public fixed income, and 20% to private markets. As a step towards this goal, BlackRock will provide both public and private market investment options for a new target-date fund launched by Great Gray Trust, which manages over $210 billion in assets. Great Gray will utilize BlackRock's equity, fixed income, and private equity offerings for its retirement fund. However, industry experts note that while demand for private asset exposure is rising, concerns around liquidity, transparency, and litigation risks remain. BlackRock CFO Martin Small recently highlighted that a real pathway now exists for integrating private markets into target-date funds but emphasized that regulatory support will be key. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Zawya
10 hours ago
- Business
- Zawya
BlackRock looks to expand private markets to retirement plans
BlackRock is set to include private assets in its retirement plans as it expands into alternative investments, the world's largest asset manager said on Monday. The move marks a significant shift in how retirement products are structured, bringing traditionally illiquid and high-fee private market investments into mainstream retirement portfolios. The New York-based firm plans to offer a target-date fund - an age-based retirement investment that combines stocks, bonds and other assets - with allocations to private equity and private credit in the first half of 2026. Retirement money is a core business for BlackRock and accounts for more than half of the money the company manages. As a push towards that move, BlackRock is providing some public and private market offerings for a new target-date retirement fund offered by Great Gray Trust. Great Gray, which offers retirement investment options and manages over $210 billion in assets, will use BlackRock's equity and fixed income index offerings as well as private equity investments for its fund. The Wall Street Journal first reported the move earlier in the day. BlackRock's approach would include a 5% to 20% allocation to private assets in the retirement plans, depending on the investor's age, according to a research paper released on Thursday. While the demand for exposure to private assets has grown, some sponsors have concerns around adding them to retirement plans for reasons such as liquidity, transparency and litigation risk. BlackRock CFO Martin Small said earlier this month there was a real pathway for private markets making their way into target-date funds, adding that it will take some regulatory support. The firm estimates that adding private markets exposure to target-dated funds could increase returns by an additional 50 basis points each year. BlackRock anticipates portfolios in the future will comprise 50% public equities, 30% public fixed income and 20% private markets.
Bloomberg
10 hours ago
- Business
- Bloomberg
BlackRock Puts Private Equity and Credit Into 401(k) Funds
Larry Fink is taking the next step in his plan to give possibly millions of Americans access to private markets through their retirement savings accounts. BlackRock Inc. said Thursday that Great Gray Trust Co., which provides services for more than $210 billion in assets, plans to start a target-date fund that will include private credit, along with BlackRock private equity, stock, fixed income and other investments.
Reuters
10 hours ago
- Business
- Reuters
BlackRock looks to expand private markets to retirement plans
June 26 (Reuters) - BlackRock (BLK.N), opens new tab is set to include private assets in its retirement plans as it expands into alternative investments, the world's largest asset manager said on Monday. The move marks a significant shift in how retirement products are structured, bringing traditionally illiquid and high-fee private market investments into mainstream retirement portfolios. The New York-based firm plans to offer a target-date fund - an age-based retirement investment that combines stocks, bonds and other assets - with allocations to private equity and private credit in the first half of 2026. Retirement money is a core business for BlackRock and accounts for more than half of the money the company manages. As a push towards that move, BlackRock is providing some public and private market offerings for a new target-date retirement fund offered by Great Gray Trust. Great Gray, which offers retirement investment options and manages over $210 billion in assets, will use BlackRock's equity and fixed income index offerings as well as private equity investments for its fund. The Wall Street Journal first reported the move earlier in the day. BlackRock's approach would include a 5% to 20% allocation to private assets in the retirement plans, depending on the investor's age, according to a research paper released on Thursday. While the demand for exposure to private assets has grown, some sponsors have concerns around adding them to retirement plans for reasons such as liquidity, transparency and litigation risk. BlackRock CFO Martin Small said earlier this month there was a real pathway for private markets making their way into target-date funds, adding that it will take some regulatory support. The firm estimates that adding private markets exposure to target-dated funds could increase returns by an additional 50 basis points each year. BlackRock anticipates portfolios in the future will comprise 50% public equities, 30% public fixed income and 20% private markets.
