Target-Date 401(k)s Get a Taste of Hedge Funds

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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About thebenefitblog

Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
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