Don’t Let Politics Sway Decisions Over Private Markets in DC Plans

Helping Americans achieve a financially secure retirement is a shared objective, and discussions about private market investments in defined contribution plans can be influenced by public debate. However, recent industry research shows steady interest in private market exposure based on its potential to diversify portfolios and support long term outcomes. Surveys indicate that about one quarter of plan sponsors are considering these options, and many participants say they would invest in private assets if offered. Private markets can broaden the range of available investments within professionally managed structures such as target date funds.

Regulatory reviews are ongoing, including efforts to reassess rules governing the use of private investments in retirement plans, but these discussions do not change the core fiduciary standard that decisions must be based on prudence and participant interests.

Read on to see why a clear and consistent fiduciary process should guide evaluations of private market options for DC plans.

Article originally published on plansponsor.com