Illiquidity in DC plans
Publication Date : May 1, 2017
Defined contribution executives like the diversification and return prospects that illiquid investments offer, but the focus on daily valuation and fees hurts.
Illiquid investments are getting a closer look from some defined contribution executives seeking plan diversification as well as higher potential long-term returns.
Seeking to improve overall risk and turn combination, JM Family Enterprises has added less liquid investments to its 401(k) and profit-sharing plans.
To help meet plan executives' daily valuation and liquidity demands on the private equity side, two firms have launched strategies that include a liquid-asset allocation.