Yahoo Finance
A quiet transformation is happening inside America's largest corporations.
And actually, most people have no idea it is occurring.
The pension funds and401(k)plans covering millions of American workers are increasingly being handed over toWall Street's elite firms to manage.
Why? It's like the companies sponsoring those plans no longer believe they can do it themselves.
The trend is now impossible to ignore.Goldman SachsGS) confirmed July 9 that it had won mandates to manage a combined $70 billion inretirementassets for two of America's most iconic companies: Verizon Communications Inc.
(VZ) and Lockheed Martin Corporation (LMT).
The deal includes approximately $30 billion in pension assets for both companies and approximately $40 billion in Verizon's defined-contribution retirement assets, typically 401(k) plans, according toGoldman.
No, it is not routine portfolio management.
It is one of the largest corporate investment outsourcing wins in recent history, and it tells you something important about where the entire asset management industry is heading.
Goldman Sachs GS) confirmed theannouncementon July 9.
The firm's outsourced chief investment officer (OCIO) business manages approximately $480 billion in assets as of March 31, according to company disclosures.
Also Read: Goldman Sachs: The History Behind Wall Street's Most Influential Investment Bank The forces driving corporate America toward outsourced investment management are structural, not cyclical.
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