Latest news with #retirementplans
Reuters
2 days ago
- Business
- Reuters
NextEra workers net $45 million from sales of company stock
June 12 (Reuters) - NextEra Energy (NEE.N), opens new tab employees realized $45 million in gains from selling company stock in their retirement plan during 2024, reversing heavy losses from the previous two years, the utility disclosed on Thursday. America's largest renewable power company is among several U.S. energy and utility companies that continue to promote big, concentrated bets on company stock in worker retirement plans. The strategy is largely out of favor among U.S. companies, which mostly have diversified their retirement portfolios to avoid heavy losses tied to one investment, according to research by Vanguard Group. NextEra shares accounted for $1.8 billion, or about one-third of the $5.4 billion in total investments in the company's retirement savings plan, the company disclosed in an annual report filed with the U.S. Securities and Exchange Commission. In 2024, NextEra employees realized gains because the company's total return that year was 21.5%. But in 2023, employees took heavy losses from their stock sales. They realized losses of nearly $162 million that year, NextEra SEC disclosures show. Realized losses from employee stock sales totaled $65.5 million in 2022. NextEra was not immediately available for comment.
National Post
14-05-2025
- Business
- National Post
Empower to Offer Private Markets Investments to Retirement Plans
Article content Firm aligns with Apollo, Franklin Templeton, Goldman Sachs, Neuberger Berman, PIMCO, Partners Group and Sagard Nation's second largest retirement plan provider opens private market investing to its 19 million plan participants 1 Article content Article content GREENWOOD VILLAGE, Colo. — In a move aimed at expanding investment opportunities for retirement plan participants, Empower is announcing today a new program that will pave the way for private markets investments to be included within defined contribution retirement plans. Article content Empower has aligned with top-tier private investments fund managers and custodians, including Apollo, Franklin Templeton, Goldman Sachs, Neuberger Berman, PIMCO, Partners Group and Sagard. Article content Private investments offered through these firms may be implemented through collective investment trusts (CITs), providing limited exposure to diversified pools of private equity, private credit and private real estate, a structure that is designed to provide liquidity protection and reduced fee exposure. Article content This landmark initiative is designed to provide individuals with access to a broader range of investment options, enabling them to further diversify their portfolios and potentially maximize their retirement savings. Article content 'Empower is making a profound move on behalf of American retirement investors who should have the ability to invest in an asset class that has the potential to diversify their portfolios and offer opportunities for returns in new ways,' said Empower President and CEO Edmund F. Murphy III. 'Like any investment, we believe in the importance of advice and risk mitigation for every investor. These new opportunities offered under an advice model deliver the guardrails necessary to help an entirely new investor class access private investing.' Article content Key Highlights of the Initiative: Article content Access to Private Markets Investments: Participants will be able to invest in private equity, private credit and private real estate funds through their workplace plans, gaining access to investment types that were previously limited to institutional investors and ultra-wealth investors. Diversification for Retirement Portfolios: Private markets have the potential to provide returns from new investment sources compared to publicly traded equities or bonds. By offering access to private markets, Empower enables retirement plan participants to further diversify their retirement portfolios, potentially altering their risk profile and offering new growth opportunities. An Advisory Requirement: Retirement plan participants can only access private market investments through Empower if their employers allow these investments to be made available. Employers must work with an advisor to offer these investments through a managed account platform created in conjunction with Empower. The managed account requirement is offered to match the investment against an individual's risk tolerance and long-term financial goals, among other factors. Enhanced Investment Structure: This offer will complement existing investment choices available in the plan's investment menu. The private investments offered through private investment managers may be accessed through CITs, a structure that provides limited exposure to pools of private equity, private credit or private real estate providing participants with enhanced liquidity features while helping mitigate fee exposure. Article content 'As a leader in private markets, democratizing alternative investing is one of our firm's biggest priorities,' said Franklin Templeton CEO Jenny Johnson. 'By offering private market assets through defined contribution plans, we're providing Americans saving for retirement the opportunity to access to some of the most dynamic and growth-oriented investments available. We're proud to partner with Empower to help clients build secure and prosperous futures, and we're excited to be at the forefront of this transformative change in retirement planning.' Article content By expanding investment options to include private markets, Empower is broadening the investing universe to help grow retirement savings to millions of people. Historically, private markets have shown the potential to be a high-performing asset class but remain largely inaccessible for most retirement plan participants. Article content The move to integrate private markets into 401(k)-type plans comes in response to growing interest from investors seeking to include so-called alternative assets in their retirement plans. Traditionally, private markets investing has been restricted to institutional investors and high-net-worth individuals but Empower is making it accessible to the broader US workforce, helping to expand the playing field in retirement planning. Article content 'We work with 19 million Americans investing for retirement through the workplace retirement system who should have the opportunity to make investments that are outside of public markets,' said Murphy. 'This move is designed to provide more robust retirement options for those who want to take a new approach to their retirement savings.' Article content Recognized as the second-largest retirement services provider in the U.S. 1 by totalparticipants, Empower administers more than $1.8 trillion in assets for 19 million investors 2 through the provision of retirement plans, advice, wealth management, and investments. Connect with us on Facebook, X, LinkedIn, TikTok, and Instagram. Article content Pensions & Investments DC Recordkeeper Survey (2024). Ranking measured by total number of participants as of December 31, 2023. As of March 31, 2025. Assets under administration (AUA) refers to the assets administered by Empower. AUA does not reflect the financial stability or strength of a company. Article content Empower refers to the products and services offered by Empower Annuity Insurance Company of America (EAICA) and its subsidiaries. 'EMPOWER' and all associated logos and product names are trademarks of Empower Annuity Insurance Company of America. Article content The information contained herein is being provided for discussion purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy or sell securities. All visuals are illustrative only. Article content Private equity investments are not appropriate for all investors and come with higher risks and fees. Empower assesses an individual's financial situation, investment objectives, risk tolerance, time horizon, liquidity needs, and investment knowledge to determine if such investments are appropriate and require the investor to be an Accredited Investor. Article content Goldman Sachs does not currently offer these products but will be launching them subject to pending internal approvals. Article content Article content Article content Article content Article content Article content
