Rowan says retirement savings companies functioned like banks post-2008, with annuities replacing deposits as liabilities.
“The next best thing was to be a retirement savings company. But where you thought like a bank the liability side of your balance sheet rather than being deposits was annuities.”
Rowan says a $16 million equity investment grew into $270 billion AUM making it the largest retirement services company.
“And what started out as a $16,000,000 equity investment has now morphed into 270,000,000,000 of AUM and the largest retirement services company in”
Rowan calls this the golden age of annuities due to massive money flows into retirement services.
“Amazing amount of money flowing into retirement services, particularly annuities. I would say the golden age of annuities, but we are borrowed You think”
“So in 2008, we started with a $16,000,000 equity investment. We ended the year at 330,000,000,000 and have become the largest provider of retirement products in The US.”
Rowan says Athene's new sales grew from $20 billion four years ago to over $60 billion this year.
“Four years ago, we were 20,000,000,000 of new sales, then 30,000,000,000, then 47,000,000,000. This year, we'll do north of $60,000,000,000 of new sales, and it continues to be.”
Rowan argues retirement systems know their liquidity needs for ten years and should get paid for illiquidity.
“Liquidity liquidity is a risk to everyone but in differing degrees. So if you are a retirement plan or a retirement system, you know your liquidity requirements for the next ten 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 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 claims an extra 1% return compounded over time produces 50-100% better retirement outcomes for retirees.
“But if you look around the world, every place that private assets have been added to public portfolios, you've gotten better outcomes.”
Rowan jokes U.S. retirement system is effectively levered to NVIDIA through market concentration.
“We've essentially, as I sometimes joke, we've levered the entirety of the retirement system of The U. S. To NVIDIA.”