Houlihan Lokey：2022年退休行業(yè)概覽報(bào)告

RetirementIndustryOverview

SUMMER2022

1Theretirementmarketismassive,exceeding$37trillioninassets.

1Morethan$10trillioninvestedindefinedcontribution(DC)plans,including$7trillionin401(k)plans.

1Macroeconomicandgeopoliticalmarketpressurescontinuetodisplacethemarketandrenewindividuals’desireforstabilityastheyfocusonretirementsavings.

1Businessesareexperiencingshiftingemploymentdynamicsduringthe“GreatResignation.”C-Suiteexecutivesunderstandthathealth,wealth,andbenefitswillbekeyinrecruitingmovingforward;wearelikelytoseetheemergenceofplatformsthatcanfocusonthisconvergenceandprovideholisticofferings.

EricWeber

ManagingDirectorNewYork

EWeber@HL.com

646.645.1026

ChrisPedone

ManagingDirectorNewYork

CPedone@HL.com

212.830.6166

AlexandraLebenthal

SeniorAdvisor

NewYork

ALebenthal@HL.com

646.259.7522

AaronSolomon

SeniorVicePresident

LosAngeles

ASolomon@HL.com

310.789.5752

Ourdedicatedteamhasanextensivelevelofexperienceintheretirementandassetmanagementsectors,specializinginM&Aforwealthmanagers,theirassets,andmanagercontracts.

Wehavetransactedortransferredmorethan$145billioninAUMsince2015.

RetirementMarketSummary

Summer2022IndustryUpdatesandDrivers

HoulihanLokey

RetirementTeam

SelectMarketDrivers

Market

Overview

Robust

Mergersand

AcquisitionsActivity

1M&Aactivitywithintheretirementspacecontinuestoincreaseasthereweremorethantwiceasmanydealsin2021(76)than2020(32).

1Retirementandwealthcontinuetoconverge;emergingmulti-functionalplatforms(CAPTRUST,CreativePlanning,Hub,etc.)areshowingtheycanfullyserviceparticipantswhileofferingequallycapablewealthmanagementandfinancialplanning.

1PE-backedinvolvementremainshighwith11retirementtransactionsin1H2022;PE-backedserialacquirersareamongthemostactive.

1KeytransactionsincludethePEsaleofReverseVisionandsaleofPE-backedStadionMoneyManagement.

RetirementTrends

1Severalnotabletrendshaveemergedintheretirementmarket:

1AddressingtheSavingsGap:Sponsorsandregulatorsaretryingtoreducethe$4trillionretirementsavingsgap.

1Technology:Leveragingrecordkeeperdatatobetterunderstandparticipantsandcreatecustomizedsolutions.

1Wellness:Reducingfinancialstressthroughincreasedplanning.

1AlternativeFunding:Retirementincomeandalternatesourcesoffunding.

1DigitalAssets:Whethertheyareasuitableinvestmentoptionforretirement.

2

Sources:SNLFinancial,M,companynewsreleases,industrynewsreports.

U.S.RetirementMarket

KeyTrendsPrevailingintheSpace

Asparticipantsaremoreactiveinretirementplanningandawareoftheiroptions,retirementadvisorsandplanprovidersareseeinganincreasedfocusonsavingstrends,technology,wellness,alternativefunding,anddigitalassets.

SelectMarketTrends

Addressingthe

SavingsGap

CustomizationWith

Dataand

Technology

Benefits,Health,

andWellness

Alternative

FundingSourcesin

Retirement

DigitalAssetsin

Retirement

Sources:Industrynewsreportsandresearch.

1TheCOVID-19pandemicjoltedawarenessabouttheneedforshort-andlong-termsavings;employersandregulatorsarehyper-focusedonclosingtheretirementsavingsgap,whichisestimatedat~$4trillion.

1ResearchshowsQDIAandauto-enrollmentarefeaturesthatcandramaticallyimpactsavings.

1ThoughDCplansshiftonustoparticipants,providersareinherentlybearingmoreresponsibilityasparticipantsareseekinghelpwithsavingandadviceoninvesting.

1Providersareleveragingcommontechnologytoconnectretirementbenefitswithotheremployeebenefitstocreateaunifiedemployeebenefitsecosystem.

1Increasedfocusoncustomizationissheddinglightonpitfallsoftargetdatefunds(TDFs).Retireesneedcustomization,beyondage,toaddressfinancialneeds,spendingbehaviors,andrisktolerances.TDFsareadequatediversifiedglidepathoptionsforinexperiencedinvestors,buthighexpensesmightnotbeworththelimitedcustomization.

178%ofemployeesrelyontheiremployersforadviceandsupportonhowtoachievelifetimefinancialgoals;53%indicatedthattheywanthelpspecificallywithsavingforretirement.

1Economistshaveuncoveredpredictableandirrationalwayshumansmakedecisions,evidentinsavingandinvestingbehavior.Withoutprogramstoovercomethesebehavioralissues,manywillnotbeabletocomfortablyretire,andemployerswillsuffer.Responsibleplansponsorsshouldconsiderthepowerful/positiveimpactsofbehavioral-basedprogramsthatautomatesavingsdecisions.

1Keyproducts:Refinancing,homeequitylineofcredit(HELOC),reversemortgage.

1Arecord$7trillioninuntappedequityamongseniorswillprovetobeasourceoffundingtoclosethegapbetweenincreasinghealthcarecostsandthefundsprovidedbySocialSecurityandretirementsavings.

1Thepost-pandemicenvironmenthasalsofueledthetrendtosafelyageinplace,makingreversemortgagesanincreasinglyattractiveoption.

1Traditionalrecordkeepersandrobo-advisorsarebeginningtooffercryptocurrencyinvestmentoptionswithin401(k)plans;theseannouncementshavebeenmetwithcautiousguidancefromtheDepartmentofLabor.

1Legislativeguidancecautionsplansponsorsawayfromdigitalassetsin401(k)s,butcryptoadvocatesarelikelytopushbackonanynewrestrictivelegislation.

1Businessesmustdecidewhethertoofferdigitalassetsandcryptocurrencyinvestmenttotheiremployees,understandingtheinherentrisksandvolatilitybutfearingnewtalentmaybelostiftheydon’tprovidetheoption.

3

Page

1.HoulihanLokeyTransactions5

2.MarketTrends11

Self-DirectedIRATrends16

3.CompetitorsandInnovation21

4.ValuationTrends42

5.Appendix48

RecentRetirementandWealthTransactions

HoulihanLokeyTransactionSpotlight

Transaction

TransactionPending

aportfoliocompanyoffunds

managedby

and

hasagreedtobeacquiredby

SellsideAdvisor

hasmadeastrategicpartnershipinandrecapitalizationof

$8.0billionAUMWealthManager

FinancialAdvisor

aportfoliocompanyof

hasbeenacquiredby

SellsideAdvisor

aportfoliocompanyof

hasbeenacquiredby

SellsideAdvisor

TransactionPending

ProjectTide

MergerofequalstolistonNasdaqviabusinesscombinationthroughaspecialpurposeacquisitionvehicle

DealAccountingandValuationAdvisoryServices

hasbeenacquiredby

aportfoliocompanyof

SellsideAdvisor

Deal

Date

April

2022

March

2022

February

2022

February

2022

January

2022

September

2021

June

2020

NotDisclosed

NotDisclosed

NotDisclosed

NotDisclosed

NotDisclosed

$1.4Billion

NotDisclosed

Deal

Value

TargetDescription

Oneofthelargest

U.K.independent

financialadvisory

businesses,serving

over20,000clients

throughmorethan

500staffacross17

U.K.locations.

Fee-onlyfiduciary

firmservingprimarily

high-net-worth

individuals,with

approximately$8.0

billioninAUM,

rankedintheTop

100RIAFirmsinthe

countryforthepast

fouryears.

Independent

investment

management

business,providing

portfolio

management,

stockbroking,and

financialplanning

servicestoprivate

clients.

Providerofmortgage

technologysolutions,

supportinghome

equityconversion

mortgageandprivate

reversemortgage

originationproducts.

Leadingmanaged

accountDC

technologyplatform

utilizingits

proprietary

technologytoservice

over$2.3billionin

AUMandmorethan

4,000plans.

Investmentadvisor

forhigh-net-worth

families,trusts,

foundations,and

endowments.

Privatelyowned

investmentfirm,

globalmultifamily

office,andmerchant

bankingboutique.

RetireUpbuilds

efficientsoftwareand

simulationsthat

enableadvisorsto

assessaclient’s

needsforspecific

lifetimeincome

product,including

annuitiesandlife

insurance.

Houlihan

LokeyRole

SellsideAdvisor

FinancialAdvisor

SellsideAdvisor

SellsideAdvisor

SellsideAdvisor

DealAccounting,

FinancialReporting,

andValuationAdvisory

Services

ExclusiveFinancialAdvisor

5

6

Sources:Publicfilings,transactionpressrelease.

“

”

1Foundedin2007,ReverseVisionservestheindustry’stopreversemortgagelendersand100%ofallreverseinvestors,includingbanksandcreditunions,mortgagebrokers,andindependentmortgagebanks.

1ReverseVision’scomprehensivereversemortgageplatformand

HECMproductsleverageintegrationsandAPIsthatopenthetotaladdressablemarket,allowinguserstooriginatereversemortgagesalongsidetheirtraditionallendingportfolios.

ConstellationOverview

1HeadquarteredinMichigan,CMSisaleadingproviderofmortgagelendingtechnology.

1CMSacquiresandinvestsinfinancialsoftwarecompaniesthatprovidemission-criticalsolutionsforthemortgageindustry.

1PartoftheRomulusGroup,aportfolioofvertical-marketsoftwarecompanieswithinthePerseusoperatinggroupof

ConstellationSoftware.

ConstellationMortgageSolutionstoAcquireReverseVision

HoulihanLokeyCaseStudy

OnFebruary9,2022,ConstellationMortgageSolutions,Inc.(CMS)announcedtheclosingofitsacquisitionofReverseVision,Inc.,aportfoliocompanyofTVCCapital(TVC).

HoulihanLokeyservedastheexclusivefinancialadvisortoReverseVision,Inc.,andTVCCapitalandassistedinmarketing,

TransactionOverview

1CMS,adivisionofToronto-basedConstellationSoftware,acquiredReverseVision.

1TheacquisitionincludesthecomponentsofReverseVision’sfullproductsuite,includingReverseVisionExchange(RVX),coreplatform;RVDOCComposer(RVDOC),compliantreversemortgagedocuments;andReverseVisionSalesAccelerator(RVSA),loanmodelingandcomparisontools.

CMShasaproventrackrecordforsupportingitsbusinessesandempoweringthemtoadvancetheindustriestheyserve.Ourteamlooksforwardtobuildingonoursharedprinciplestohelpborrowersachievetheirfinancialgoals.

—JoeLanger,FormerPresidentandCEOofReverseVision

structuring,andnegotiatingthetransaction.

TransactionRationaleReverseVisionOverview

1TheacquisitionexpandsCMS’overallfootprintandavailabilityofitsplatformsandservices.

1ExpandsCMS’digitalmortgageecosystemandcapabilities.

1ThisisCMS’secondacquisitioninthemortgagespace,followingtheacquisitionofLOSandLSSproviderMortgage

Builderin2019.

1ThesaleconsummatedadedicatedgrowthperiodforReverseVision,andthetransactionmarksthenextchapterinReverseVision’sevolution.

“

”

SmartUSAtoAcquireStadionMoneyManagement

HoulihanLokeyCaseStudy

OnJanuary6,2022,TAAssociates,LP,announcedthesigningofadefinitiveagreementtosellStadionMoneyManagement,LLC(Stadion),atechnology-enabledmanagedaccountprovider,toSmartUSACo.(Smart).

HoulihanLokeyservedastheexclusivefinancialadvisortoStadionandassistedinmarketing,structuring,andnegotiatingthe

transactionwithSmart,successfullydrivingcompetitivetensionandidentifyingthebestpartnertoStadion’sretirementtech.

TransactionOverview

1SmartsignedadefinitiveagreementwithTAAssociatestoacquire100%oftheequityofStadion.

1Stadion’semployeeswillbejoiningSmart’sU.S.retirementoperations.

…ThereisanincredibleopportunitytodeliverscalableandpersonalizedretirementsolutionstoevenmoreAmericans.ThecombinedteamofSmartandStadionwillbeextremelywellpositionedtoservetheevolvingneedsofrecordkeepers,assetmanagers,advisors,planssponsors,andultimatelytheirparticipants.

—JudDoherty,CEOofStadion

Sources:Publicfilings,transactionpressrelease.

TransactionRationale

1CreatescontinuedmomentumforSmart’sU.S.growthinitiative,havingrecentlylaunchedU.S.operations.

1Integratesrecordkeeping,managedaccounts,andotheradministrativeservicesfocusedonpooledplanstructuresandretirementincomesolutions.

1BringsSmartRetireproducttoStadion’sexistingStoryLineaccumulationofferingtogiveparticipantsadecumulationsolution,supportingincomeneedsoftheparticipantpostretirement.

1Smartwilladdmorethan$2.3billioninassetsundermanagementandgainaccesstoStadion’s4,000plans.

SmartOverview

1Foundedin2014,Smartisaglobaltechnologybusinessthatdeliverspeople-focusedretirementsolutions.

1Offersabroadrangeofretirementproductsrangingfromself-serviceretirementincomesolutionstocustomizedplatformoptionsforemployers,

1AsofJuly31,2021,Smarthadover$2billioninassetsonitsplatform,servingmorethan70,000retirementplans.

advisors,andparticipants.

StadionOverview

1StadionisaleadingmanagedaccountDCtechnologyplatformutilizingitsproprietarytechnology.

1Integrateswithrecordkeeperstoofferlow-costpersonalizedretirementsolutionsona

massscalewithintheU.S.retirementplanmarket.

1OffersbothitssignatureStoryLinemanagedaccountsolutionandtech-onlyservices.

1Stadionwasfoundedin

1993andheadquarteredinAthens,Georgia.

7

TransactionOverview

TransactionRationale

“

Sources:Publicfilings,transactionpressrelease.”

Tegra118toAcquireRetireUp

HoulihanLokeyCaseStudy

OnJune9,2020,Tegra118,aportfoliocompanyofMotivePartnersGP,LLC,announcedtheclosingofitsacquisitionofRetireUp,LLC,aninsurancetechnologybusinessfocusedontheretirementplanningindustry.

HoulihanLokeyservedastheexclusivefinancialadvisortoRetireUpandassistedinmarketing,structuring,andnegotiatingthe

transactionwithMotivePartners,andwasabletosuccessfullynavigateachallengingmarketenvironmentamidCOVID-19.

Tegra118Overview

1StepforwardinexpandingTegra118’sinsurancewealthadvisorypractice,offeringanewfinancialtooltoitsvastnetworkofclients.

1JoininganestablishedleaderinthewealthmanagementindustrywillallowRetireUptoexpanditsfootprintandoffernewproductstoitsgrowingcustomerbase.

1Tegra118iscommittedtodeliveringpowerfulsolutionsthatsetanewstandard.

Since2012,RetireUphassupportedinsurancebroker-dealerswithafocusonannuityandfinancialplanningadvice.JoiningforceswithTegra118,anestablishedleaderinthewealthmanagementindustry…OurcombinedofferingsgiveTegra118anedgeinaddressingthegrowingmarketforlifetimeincomesolutions

—MichaelRoth,PresidentofRetireUp

1TheacquisitionofRetireUpwillaccelerateandadvanceTegra118’swealthtechplatform.

1Combined,thetwocompanieswillbringuniquestrengthstotheindustrythroughproven,mission-criticaltechnologythathelpsadvisorsenrichtheirclientrelationshipsthroughinnovative,impactfulsolutions.

1RetireUp’ssolutionsalsotransformcomplexfinancialconceptsintoeasy-to-understand,“big-picture”visuals.Thecombinedfirmwillhelpadvisorsenrichtheirclientrelationshipswithpowerfulretirementincomeplanningthroughaseamless,modernexperience.

1Leadingproviderofsoftwaresolutionstothewealthandassetmanagementindustrywithavastnetworkofbroker-dealers,assetmanagers,custodians,andtradinginterfaces.

1Tegra118’stechnologyplatformprovidesportfoliomanagement,trading,accounting,rebalancing,

1FormerlyFiservInvestmentServices,MotivePartners,aspecialistprivateequityfirmwithofficesinNew

YorkCityandLondon,acquireda60%stakeinFebruary2020.

1MotivePartnersisfocusedontechnology-enabledbusinessesandfinancialservicescompanies.

andreportingformanaged

accounts.

RetireUpOverview

1Foundedin2013byateamoffinancialadvisors,RetireUpboastsnimbleandefficientsoftwareandsimulationsthatmakeiteasyforadvisorstoassessaclient’sneedsforspecificlifetimeincomeproducts(suchasannuitiesandlifeinsurance).

1Uniquesolutionsalsotransformcomplexfinancialconceptsintoeasy-to-understand,“big-picture”visuals,soadvisorscanhelpinvestorsbecomeactiveparticipantsintheirownfinancialfutures.

1HeadquarteredinIllinois,theentireRetireUpteamjoined

Tegra118.

8

SellsideAdvisor

aportfoliocompanyof

hasbeenacquiredby

DealAccountingandValuationAdvisoryServices

TransactionPending

ProjectTide

MergerofequalstolistonNasdaqviabusinesscombinationthroughaspecialpurposeacquisitionvehicle

FinancialAdvisor

hasmadeastrategicpartnershipinandrecapitalizationof

$8.0billionAUMWealthManager

SellsideAdvisor

aportfoliocompanyof

hasbeenacquiredby

SellsideAdvisor

hasbeenacquiredby

SellsideAdvisor

hasreceivedapartnership

investmentfrom

fundsmanagedby

FairnessOpinion

hasbeenacquiredby

SellsideAdvisor

hasbeenacquiredby

aportfoliocompanyof

CapitalRaising

aportfoliocompanyof

hasreceivedfinancingfromfundsmanagedby

SellsideAdvisor*

aportfoliocompanyof

hasmergedwith

aportfoliocompanyof

FinancialandTaxDueDiligence

aportfoliocompanyof

hasacquired

BuysideAdvisor

hasacquiredthroughschemeofarrangement

￡206,000,000

FinancialAdvisoryServices

Fundsmanagedby

haveenteredintoanagreementtocombine

and

SellsideAdvisor*

awhollyownedsubsidiaryof

hasbeenacquiredby

RetirementandWealthManagementTransactions

ExtensiveGlobalRetirementandWealthExperience

SelectRelatedEngagements

TransactionPending

aportfoliocompanyoffunds

managedby

and

hasagreedtobeacquiredby

SellsideAdvisor

aportfoliocompanyof

hasbeenacquiredby

SellsideAdvisor

aportfoliocompanyof

hasacquired

FinancialandTaxDueDiligence

Tombstonesincludedhereinrepresenttransactionsclosedfrom2018forward.

*SelectedtransactionswereexecutedbyHoulihanLokeyprofessionalswhileatotherfirmsacquiredbyHoulihanLokeyorbyprofessionalsfromaHoulihanLokeyjointventurecompany.

9

Page

1.HoulihanLokeyTransactions5

2.MarketTrends11

Self-DirectedIRATrends16

3.CompetitorsandInnovation21

4.ValuationTrends42

5.Appendix48

Sources:ICIRelease’sQuarterlyRetirementMarketDataFirstQuarter2022,JPMorgan2021DefinedContributionPlanParticipantSurvey.

11

(1)DataasofQ1eachyear.

U.S.RetirementMarket

Overview

Overthepastseveraldecades,theU.S.retirementmarkethasshiftedfromdefinedbenefit(DB)toDCplansandindividualretirementaccounts(IRAs),underscoringparticipants’increasedfocusonretirementoutcomesuccess.

U.S.RetirementMarketOverview

1U.S.retirementassetsmorethandoubledfrom$18.5trillionto$37.5trillionoverthepastdecade,growingata6.6%CAGR(Q12011–Q12022).

1401(k)andotherDCplanshaveretainedasteady~28%share,growingatan8.9%CAGR(2010–2021).

1Longerlifeexpectancies,increasedretirementages,andregulatorychangeshavespurredgrowthintoself-directedassets.

1Participantsaretendingtostaythecourse,with~80%notmakinganycontributionorinvestmentchangesasaresultofCOVID-19.

1Withincreasedvolatility,itisimportantforcompaniestosupplementretirementwithotherbenefits,planning,andwellnessofferingstodifferentiatecapabilitiesandretainclientassets.

IndustryTailwinds

1Demographics:MillennialsandGenZscontributemoreaslifeexpectanciesincreaseandtheyaremorefocusedonfinancialwellness.

1Regulation:TheSECUREActbroadenedcoverageforU.S.workerswithPEPs/MEPsexpectedtodrivegrowthfromincreasedscale.

1Preferences:Contributions,demandfordiversification,andadvicearegrowingwithauto-enrollmentandcompanymatchprograms.

1Post-Retirement:Opportunityfornewproductsandservicestomeetgoalsas401(k)plansareexpectedtopersistintoretirement.

1Custody:Thecustodyindustrycontinuestoconsolidateasbanksselloffoperationsandglobalregulationsfavorlargeproviders.

DBplansdroppedfrom37%ofU.S.retirementassetsin1985tojustunder10%,highlightingtheshiftinroleandresponsibilityinallocationof

contributionfromtheemployertotheparticipant.

U.S.TotalRetirementAssets(1)

$37.5

$36.0

6.0

7.9

13.2

10.4

DCIRAGovernmentDB

OtherRetirement

$23.0

6.0

7.3

12.7

10.0

$29.6

$28.5

$28.4

$26.3

5.1

5.5

5.3

6.1

9.9

8.2

$24.2

$24.2

5.4

6.0

9.4

7.8

5.1

6.1

9.5

7.8

7.2

$20.8

4.9

5.2

7.6

6.6

5.0

5.2

7.4

6.5

$19.3

4.8

4.9

7.0

6.2

4.6

4.6

6.1

5.5

4.4

4.3

5.6

5.1

8.4

$intrillions

20122013201420152016201720182019202020212022

U.S.RetirementMarket

ParticipantDemographicsandRole

Nearlytwo-thirdsofallU.S.retirementassetsareheldinIRAsandDCplans,andbyyoungerparticipantswhowillcontinuetoaccumulatewealthandcontribute.

ShiftingResponsibilityTowardtheParticipant

140yearsago,IRAsandDCplansaccountedfor23%ofretirementmarketassets,whileDBplansaccountedfor64%ofassets.

1Today,IRAsandDCplansaccountfor63%ofallU.S.retirementassets(~$24trillionassets).

1Thisshiftinresponsibilityputstheretirementonusontheparticipant,butparticipantswantsomeformofadviceastheynavigatesavings.

181%ofparticipantssaiditwouldbehelpfulifemployersprovidedsecureincomegeneratingoptionsinworkplaceplans.

1Automaticenrollmenthasshowntobeanimpactfultool,asplansofferingthisfeaturehavetwicetheparticipationrate(82%vs.42%).

HistoricalShareofU.S.MarketbyPlanType

IRADCDBAnnuities

13%

10%

8%

9%

8%

7%

32%

28%

6%

31%

44%

34%

51%

37%

3%

64%

20%

28%

27%

26%

26%

22%

35%

33%

31%

28%

23%

16%

HistoricalDCPlanAssets

$inbillions

CAGR10.6%

$9,643

$6,456

$4,770

$2,958

$872

$202

$10,446

1980199020002010201520202022Q1

401(k)AssetsbyAssetType

$inbillions

$7,340

MutualFundsOtherAssets

36%

$5,455

40%

$2,84241%

59%

$4,425

34%

64%

$1,061

67%33%

60%

66%

$1,738

52%

48%

1980199020002010201520202022Q1

Sources:ICIRelease’sQuarterlyRetirementMarketDataFirstQuarter2022,Vanguard’sHowAmericaSaves2021.

1996

2000

2010

2015

20202022Q1

12

$12.7

$3.3

U.S.RetirementMarket

DCIsaLargeandGrowingMarket

DCMarketOverview

1TheU.S.DCmarketisrapidlygrowing,with$12.7trillionprojectedassetsby2025.

1Asof2021,~$7.2trillionand~$3.3trillionsitwithin401(k)plansandTDFs,respectively.

1Self-directedassetsareprojectedtogrowfrommarketappreciation,increasedretirementages,andregulatorychanges.

1Asinvestorsnavigatemacroeconomicrisksandrelatedmarketvolatility,retirementplanscontinuetobeasignificantbenefitforemployees.

1Participantsarelookingtoemployersforretirementadvicefromaccumulationtodecumulation;holisticstrategiesinclusiveoffeatureslikeQDIA,auto-enrollment,reenrollment,andfinancialwellnesscanbetterfundplansandhelpclosethesavingsgap.

AverageAssetAllocations

$10.4trillionassetsheldinDCplansintheU.S.asof2022Q1

401(k)participantsintheir60s

ofDCplanassetsarein401(k)s

Other18%

EquityFunds38%

Company

Stock5%

BondFunds10%

Average

ofparticipantsareyoungerthan40

401(k)

Asset

Allocation

ofplanshademployercontributions

TDFs

29%

70%

>1/3rd

79%

AssetsintheDCMarket

$intrillions

CAGR:6.9%

$11.0

$6.5

2021

2015

2025E

401(k)PlansandParticipants

000s

PlansParticipants

1,000

604

547

150

80

91

2015

2019

2025E

AssetsHeldinTargetDateFunds

$intrillions

CAGR:31.9%

$0.7

2015

2021

Sources:BenefitsPro,DepartmentofLabor,ICI2022Factbook,ICIRelease’sQuarterlyRetirementMarketDataFirstQuarter2022,JPMorgan2021DefinedContributionPlanParticipantSurvey,McKinsey&Company’s“Long-termvaluecreationinUSretirement,”Morningstar’s“Target-DateStrategyLandscapeReport”.

13

U.S.RetirementMarket

TrendsintheDCMarket

14

Sources:BofAGlobalResearch’sTheSilverLining,ICIRelease’sQuarterlyRetirementMarketDataFirstQuarter2022,WallStreetJournal.

TheDCmarketcontinuestoevolveasregulation,investmentvehicles,demographics,andstrategiesdrivechangeforbetterretirementoutcomes.

RecentMarketLegislation

1Newdevelopmentsandrecentregulationar