Research

Enhancing Outcomes through Diversification
of DC Multi-Asset Investment Strategies

A convergence of product innovation, greater access to institutional managers, and evolving regulation is making private markets a more viable and valuable diversification tool for DC plan investors.

Leveraging Familiar Solutions to Provide Access

to Private Market Exposures

Enhancing Retirement Outcomes Through Diversification and Yield

Technology, Innovation, and Alternative Investments in Defined Contribution Plans

Trends in DC Plan Investments for U.S. Plan Sponsors and Industry Stakeholders

A Guide for U.S. Plan Sponsors and Industry Stakeholders

Press Release for Liquidity Framework Paper

Evidence from the Experience of Pension Funds

A new report from Georgetown University’s Center for Retirement Initiatives (CRI) and CEM Benchmarking (CEM) finds that adding illiquid assets, such as private equity, real estate, and infrastructure, to the target date funds (TDFs) of defined contribution (DC) retirement plans would have resulted in a 0.15% (15 basis points) increase in return per year over a decade. When applied to all U.S. target date options, such an increase would currently represent $5 billion in additional annual net returns.

Defined benefit plans, endowments, and foundations have long enjoyed the benefits of investing in private real estate, namely diversification, lower volatility of returns, a hedge against inflation, and the potential for improving risk-adjusted investment performance. This paper considers the current inflationary environment, and the impact core private real estate can have, not only in defined contribution (DC) target date portfolios, but also in multi-asset inflation-sensitive options for participants.