PGIM has hired Yaqub (Qub) Ahmed as head of defined contribution (DC) solutions to lead its holistic DC strategy across institutional and wealth channels, as the US retirement market undergoes “significant change”.

In his new role, Ahmed will bring PGIM’s investment and advice capabilities to plan sponsors, consultants, advisors, and the participants they serve.

The appointment by PGIM, the $1.5tn (£1.1tn) asset management business of Prudential Financial, comes as the DC market enters what it called “a significant period of change”, with the combination of retirement income, personalisation and advice, private markets access, an evolving fiduciary landscape, and the convergence of the institutional and wealth channels “reshaping how participants build and spend retirement savings”.

It also follows a series of strategic senior hires within the DC solutions group at the firm.

Private credit managers have been quick to hire DC experts in a bid to launch new products and form partnerships to win some of the $14tn 401(k) market in the US. 

An executive order signed by US President Donald Trump last year paved the way for private credit and other alternative assets to be more easily put into retirement accounts.

PGIM has over $190bn in total DC assets under management and launched a vehicle giving retirement plans access to private real estate investments more than 20 years ago.

“Qub brings deep expertise across the retirement landscape and a strong track record of building innovative solutions that address the evolving challenges facing retirement plans and their participants,” said Stuart Parker, head of global wealth at PGIM. “His leadership will help us further strengthen our capabilities and deliver the full scope of PGIM’s investment platform to plan sponsors and retirement investors.”

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Ahmed, who will report into Parker, observed that the DC market is entering a period of “meaningful evolution” as plan sponsors seek new ways to improve participant outcomes and provide access to a broader range of investment solutions spanning retirement income, alternatives, and personalised outcomes.

“I’m energised by the opportunity to build on PGIM’s long-standing success in the retirement market and develop innovative solutions that deliver better outcomes for clients,” he added.

Ahmed has a more than 30-year career in financial services, having led major retirement and insurance asset management businesses with a track record in advice, managed accounts, and private markets in DC.

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