Defined Contribution Overview
The Changing Landscape of Retirement Planning
Defined contribution plans are an important part of the U.S. retirement market. These types of plans represent $4.4 trillion in assets and are projected to grow to $7.7 trillion by the year 2020.*
We are committed to providing solutions for defined contribution plan sponsors and the consultants who serve them. In 2006, PGIM Real Estate started one of the first real estate fund vehicles aimed at defined contribution plans. Our business approach is to build awareness and a level of acceptance for commercial real estate in defined contribution plans and to be a thought leader and a top investment manager in this space. Defined contribution plans can invest with PGIM Real Estate in both the private and public markets.
As defined benefit plans gradually decline in terms of the number of plan participants and total assets managed, defined contribution plans have been and will continue to be an increasingly important part of PGIM Real Estate's focus and future growth. PGIM Real Estate has in place dedicated resources for this initiative and we will continue to market our wide array of investment capabilities to plan sponsors.
PGIM Real Estate offers solutions to defined contribution plan sponsors who want to gain real estate exposure. Our solutions include the following investment options:
- Global real estate securities (REITs) either in the form of a customized single client account or in the form of the institutional share class of a nationally recognized global mutual fund
- Two hybrid fund-of-funds vehicles that combine private real estate with global real estate securities while offering the benefits of daily liquidity and third-party daily valuation
- Private real estate vehicles
PGIM Real Estate is focused on reducing volatility and increasing downside protection. We operate with a fiduciary mindset that puts the client's interests and concerns at heart. PGIM Real Estate has been managing real estate for institutional clients since 1970. We have been actively involved in the defined contribution space since 2006.
*Casey Quirk and Associates
Defined Contribution Real Estate Council
PGIM Real Estate has taken a leadership role in the formation of the Defined Contribution Real Estate Council (DCREC). This organization was officially formed in January 2013. David Skinner, PGIM Real Estate's Defined Contribution Practice Leader, is a founding member of DCREC. Len Kaplan, the portfolio manager for one of our defined contribution investment solutions, has been named to the Research Committee.
DCREC's mission is to promote the inclusion of investments in direct commercial real estate and real estate securities within defined contribution plans in order to improve participant outcomes by furthering education about, advocacy for, and best practices of such investments. Nine leading investment managers and industry organizations are currently members.