Simplifying a defined contribution (DC) plan’s investment menu could encourage more employees to participate in the plan, sources say.
Tag: active investing
Cerulli Associates points to active target-date fund (TDF) performance during market volatility and the ability to mitigate sequence of return risk for defined contribution (DC) plan participants as reasons to consider them.
Sway research finds target-date series that invest in passively managed underlying funds, as well as those that invest in collective investment trusts (CITs) have been increasing, while target-date series that invest in actively managed underlying funds saw their market share fall.
Their No. 1 objective for client portfolios is downside risk protection
Steve Deschenes, product management and analytics director at Capital Group, says, “The active-passive debate is an industry discussion which distracts investors from what can have a real impact on their portfolios.”
EY says the move from active to passive investing is one of them.