There will be a new hand on the wheel at Prudential's defined contribution business starting next week. The MutualFundWire.com
has learned that Mark Fetting, the 44-year-old president of Prudential Institutional Investment and Retirement Services will step aside next week to pursue personal interests. Ken Montgomery, executive vice president, will replace Fetting on April 15.
Fetting informed his boss, Jean Hamilton, chief executive officer of Prudential Institutional, of his decision last week. Fetting plans to spend more time with his family in Baltimore and to spend time with an inner-city youth summer camp which he founded with his wife. Fetting has commuted between Baltimore and New Jersey during the last four of his seven plus years at Prudential.
Prudential made efforts to work around Fetting's commuting and work and family issues, but in the end Baltimore won out, he admitted.
"This is a good time for the family and a good time for the firm," Fetting told our sister pub The 401kWire.com
in explanation of his decision. He added that Prudential has turned the corner under the direction of CEO Arthur Ryan and turned from a company in distress into an industry leader.
Although he will take time off, he expects to return to the financial services industry by year end in a position located in the Baltimore area.
As proof of Pru's turnaround, Fetting points to the strong growth in Prudential's defined contribution sales over the past four years. In 1996, the insurer had $1 billion in DC sales. That figure grew to $2.2 billion in 1997, and $4.3 billion in 1998. The insurer claimed $61.2 billion of total defined contribution assets under management at year end. Defined contribution covers 401(k), 403(b), and 457 plan business.
Prudential now claims $220 billion in assets under management in its retirement area which includes individual IRAs, annuities, defined benefit and defined contribution plans.
Montgomery was hired from Putnam by Fetting in November of 1997 and has held the position of executive vice president for new business development at Prudential. Since his hiring Montgomery has been the expected successor to Fetting.
"Art [Ryan] is running Prudential as a growth company," Fetting explained, "One of the first things to do in a growth company is to hire a successor."
As such, he expects that there will be a smooth transition.
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