| BOSTON, April 3
BOSTON, April 3 Robert Reynolds, a former
Fidelity Investments executive, wants to become a formidable
rival to the largest U.S. 401(k) recordkeeper.
Reynolds, who runs Great-West Lifeco U.S. Inc, said
on Thursday he struck a deal to buy the large 401(k)
recordkeeping unit of JPMorgan Chase & Co Inc. The deal,
in which terms were not disclosed, creates the second-largest
U.S. recordkeeper of 401(k)-style retirement plans with 6.8
million participants and $387 billion in assets.
"I approach this as we want to be the best," Reynolds said.
"I helped build Fidelity's business and the focus always was
being the best at what we do."
However, Fidelity still dominates that retirement plan
recordkeeping market by a wide margin. Its full defined
contribution recordkeeping assets under administration totaled
$1.36 trillion at the end of 2013, a Fidelity spokesman said.
That's up from $678 billion in 2008. Those assets include 401(k)
plans and the defined contribution plan assets of nonprofits and
universities, for example.
Reynolds is well known inside Boston-based Fidelity. He was
a senior executive there and his office was right next to
Fidelity Chairman Edward C. Johnson's. Reynolds left Fidelity in
2007 after a 24-year career.
Last month, Reynolds was named chief executive of Great-West
Lifeco U.S., which also owns Boston-based Putnam Investments and
Great-West Financial in Denver. Reynolds had been serving as CEO
of Putnam, where he landed in 2008 after leaving Fidelity.
Reynolds said JPMorgan's book of business includes plenty of
mega 401(k) plan clients who are Fortune 500 companies. The
Great-West recordkeeping business covers smaller 401(k) clients
and the nonprofit sector, he said.
Reynolds did not rule out more acquisitions. But he said the
JPMorgan deal puts Great-West in a position to also grow
"We feel very confident that with what we have today we can
grow dramatically organically," Reynolds said. "But I'd never
sit here and say I'd never do another acquisition either."
(Reporting By Tim McLaughlin; Editing by Bernard Orr)