David Blanchett, lead retirement researcher at Morningstar Investment Management, has been tapped by QMA LLC, the quantitative equity and multi-asset solutions unit of PGIM, to head its research efforts in meeting the growing demand for defined contribution solutions.
Blanchett, who spent 10 years at Morningstar, will serve as managing director and head of retirement research.
In a statement, Blanchett said he is “incredibly excited to join QMA given PGIM’s position as a leader in the retirement space. I look forward to working alongside some of the brightest minds in the industry to develop new proprietary investment solutions to improve retirement outcomes for potentially millions of investors and DC participants.”
QMA’s CEO Andrew Dyson told Financial Advisor that Blanchett was hired because he shares a common vision with the company on where the retirement industry is headed and how they can become leaders in the space.
“David has the same views that we have that we can be leaders in this space and ultimately that will allow us to do well and make a difference for individuals who depend on these savings in retirement,” Dyson said.
Dyson said DC solutions are becoming a dominant topic in conversations with clients. In fact, he said half the conversations they are having with clients recognize income is the next big topic. “They are very interested in learning what we are doing in that space and that we can help them. It’s still early, but both levels of interest at the moment are off the charts,” he said.
Dyson said that the demand for income solution is naturally driven by an age-based system, and as participants within the system get older, there is a shift from accumulation to decumulation. “The solution that worked in the earlier years of a retirement are not the same that would work as people move toward retirement and [enter] retirement,” he said. “Generally you need much more systematic approaches to providing income to make sure you have enough to last all your life."
Without the next phase of evolution, Dyson said the solutions will not necessarily be there for upcoming challenges in the retirement space. “We are absolutely determined that we want to be there to help people meet those challenges and to be leaders in that space,” he said.