Jillien Flores, Chief Advocacy Officer at the Managed Funds Association (MFA), discusses research supporting alternative investments in retirement portfolios for improved returns and risk management. The content covers the Department of Labor’s proposal establishing six key factors for fiduciary safe harbor provisions, and MFA’s commitment to working with members to support implementation so that 401k savers can access the same investment opportunities traditionally available to pension funds.
Key takeaways:
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Research suggests that including alternative investments in retirement portfolios can enhance long-term returns while helping investors better manage portfolio risk.
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The Department of Labor’s proposed fiduciary safe harbor framework outlines key considerations for incorporating alternatives into retirement plans, including performance, fees, liquidity, valuations, benchmarking, and complexity.
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Expanding access to alternative investments in 401(k) plans could give individual retirement savers opportunities that have historically been available primarily to large institutional investors such as pension funds.
Transcript:
Research shows that adding alternatives to retirement portfolios can improve long term returns and help manage risk.
The Department of Labor’s proposal sets out six factors for planned fiduciary safe harbor: performance, fees, liquidity, valuations, benchmarking, and complexity.
MFA will work with our members to help DOL get this done and ensure four zero one savers can have the same opportunities long afforded to pension funds.
