Rowan questions why $12-13 trillion in 401k plans are daily liquid for fifty-year investments.
“What are these people invested in? They don't know. Well, I'll tell you, on the whole, they're invested in daily liquid mutual funds and ETFs for fifty years.”
Rowan criticizes putting $12-13 trillion in 401(k)s into S&P index funds based on mistaken belief public is safer than private.
“They own daily liquid stock index funds generally S and P for fifty years. Why. Well we have a mistaken belief that public is safe and private is risky.”
Rowan critiques $12-13 trillion in 401k accounts being entirely in liquid S&P index funds.
“What do they own. They own daily liquid stock index funds generally S and P for fifty years.”
Rowan criticizes forcing $12-13 trillion in 401(k)s into daily liquid index funds for fifty-year periods based on flawed assumptions.
“we have 12 to $13,000,000,000,000 in 04/2001 and we're forcing these really long term investors to own daily liquid index funds for a period of time, fifty years.”
Rowan predicts a new administration would quickly allow illiquid investments in 401(k)s, creating substantial industry demand.
“That will not just benefit Apollo, that will be another source of demand for the industry of a magnitude that will be quite substantial.”
Rowan calculates an extra one percent compounded return produces 50% to 100% better retirement outcomes.
“And if you go to the extreme and you take retirees, for instance, in 04/2001, an extra percent compounded over the duration of how long you're going to be in there is a 50% to 100% better outcome by having better investments.”
Rowan argues an extra one percent compounded return in 401(k) investments results in 50% to 100% better retirement outcomes.
“And if you go to the extreme and you take retirees, for instance, in four zero one k, an extra percent compounded over the duration of how long you're going to be in there is a 50% to 100% better outcome by having better investments.”
Rowan completes list of demand sources including traditional asset managers and 401(k)s.
“of our institutional clients, plus traditional asset managers and plus four zero one ks and DC.”