The London-listed firm said that with $22.5 trillion in assets, the US market represented around 80% of the global total
PensionBee Group announced its expansion into the US, the world’s biggest defined contribution (DC) pension market, on Thursday.
The London-listed firm said that with $22.5 trillion in assets, the US market represented around 80% of the global total.
Its wholly-owned US subsidiary, PensionBee Inc, was now registered as an investment adviser with the US SEC.
PensionBee added that it had entered into a strategic agreement with State Street Global Advisors (SSGA), a major US-based financial institution.
The firm explained that the partnership would build on its existing collaboration in the UK, where SSGA manages certain PensionBee investment portfolios.
It said the agreement would enable PensionBee to offer its online retirement proposition and proprietary technology to US consumers, allowing them to consolidate and roll over their 401(k) plans and Individual Retirement Accounts (IRAs) into a new PensionBee IRA.
PensionBee said it would offer a range of investment portfolios exclusively consisting of SSGA-managed ETFs.
SSGA would also provide significant marketing support as PensionBee employs its data-led, multi-channel customer acquisition strategy to attract new customers.
The firm said it was aiming for rapid growth in the US, targeting the administration of $20 billion to $25 billion in US DC assets over the next decade, matching the significance of its UK business.
In the UK, PensionBee manages more than £5 billion in assets under administration for over 250,000 invested customers.
The firm said it was aiming to capture nearly 2% of the £1.2 trillion UK pensions market over the next five to 10 years, targeting one million customers and £20 billion to £25 billion in assets under administration.
In the year of our 10th anniversary since founding PensionBee, we are delighted to expand the reach of our award-winning customer proposition, innovative technology platform and unique marketing approach to the US market, said CEO Romi Savova.
By entering the world’s biggest DC pension market, where many consumers still struggle to prepare adequately for retirement amidst an array of confusing and opaque investment options, our unique and simple approach to online retirement savings will resonate, she added.