via Wall Street Journal
Attention, 401(k) participants: The target-date fund in your employer-sponsored retirement plan may have added a dollop of hedge-fund-like flavor.
Some sponsors of these all-in-one funds for retirement have added hedge-fund-like “alternative” mutual funds to their portfolios in hopes of steadying performance with assets that may not move in lock step with mainstream stocks and bonds.
The trend is mainly apparent among smaller players—companies including Manning & Napier Inc., Principal Financial Group andAllianceBernstein LP—that are seeking to “differentiate themselves and find a place in a market that is dominated by just a few players,” says Lori Lucas, defined-contribution practice leader at investment consulting firm Callan Associates Inc.
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