Click to login and read the full article.
Don’t have access? Click here to request a demo
Alternatively, Call a member of the team to discuss membership options
US and Overseas: +1 646-931-9045
UK: 0207 139 1600
Abstract
Alternative assets—those other than stocks, bonds, and cash—are starting to play a role in defined-contribution (DC) retirement plans and particularly in target-date funds, which are marketed to most retirees as complete investment solutions. The authors ask whether this is a good idea and outline the conditions under which alternatives can sensibly be used as a component of DC plans. They conclude first that risk estimates for alternative assets need to be adjusted upward and expected return estimates downward. Second, the liquidity needs of the fund and of the plan participants should be carefully considered when investing some of the participants’ money in alternatives. Third, the total invested in alternatives on behalf of plan participants should not be large.
- © 2014 Pageant Media Ltd
Don’t have access? Click here to request a demo
Alternatively, Call a member of the team to discuss membership options
US and Overseas: +1 646-931-9045
UK: 0207 139 1600