Alternative managers hope to enter the DC market
Stakeholders across the asset management industry have taken great interest in alternative strategies in recent years. Traditional managers have sought to acquire or partner with alternative specialists who themselves want access to wider pools of investors. Wealth managers, meanwhile, are on the lookout for strategies to satisfy high-net-worth clients.
Defined contribution (DC) markets, however, are one segment that has proven historically resistant to alternative adoption. While defined benefit (DB) plans have long been users of alternatives, DC plans have fewer liquid or illiquid alternative strategies. A concerted push by alternative managers and potential shifts in regulation could open new ground in retirement plans, but in order for this to succeed, the DC market will likely require much firmer guidance and more definitive changes in regulation.
By: Alan Hess, Vice President, U.S. Fund Research, ISS Market Intelligence
