DCIIA provides potential next steps for defined contribution plan sponsors to incorporate alternative investments into their plans, with considerations for fiduciaries.
GaiaLens launches real-time ESG news service; AllianceBernstein and Vestmark unveil custom municipal solutions platform; DCALTA partners with PivotalPath to launch hedge fund benchmarks; and more.
The supplemental statement refines its June 2020 information letter on including private equity investments in participant-directed retirement savings plans.
DCALTA releases daily valuation tool for alts in DC plans
Print
Defined contribution plan sponsors historically have steered clear of incorporating alternative assets in their plans for several reasons, including litigation concerns and structural issues such as liquidity and valuation needs.
But in June, the Department of Labor issued an information letter explicitly permitting the use of certain private equity strategies in DC plans, so long as a prudent fiduciary process is undertaken.
With a legal foundation now established, the Defined Contribution Alternatives Association is releasing a series of white papers on the operational challenges DC plan sponsors must face to incorporate private assets. The first paper Daily Valuation of Alternative Assets in DC Plans was published Feb. 23 and provides a framework for plans sponsors and industry stakeholders interested in addressing the valuation issue.