PLANSPONSOR - August - September 2022 - 10

UPFRONT
Growing Inclusion of Alts in DC Plans
IT ONCE was that only defined contribution
plans with assets totaling billions
or hundreds of millions of dollars would
invest in alternatives such as core private
real estate. But things have evolved, says
Jani Venter, executive director, defined
contribution
fund management,
real
estate Americas at J.P. Morgan.
" Historically, it's been large corporate
and public plans with custom structures
that decided to include real estate, because
of the asset class benefits, " she says.
" There's [now] also a smaller component
of investors holding exposure through
core-menu white label funds or operating
portfolios. Public DC 457 plans have also
increased access to alternatives. "
TDFs Dominate
Plan sponsors are adding such alts
through multi-asset strategies within
target-date funds, says Jennifer Perkins,
managing director and defined contribution
portfolio manager at LaSalle
Investment Management.
" Multi-asset
strategies are the biggest accumulator of
assets within DC plans-and by and large
[those strategies are found in] the targetdate
fund, " she notes.
Alts also find their way into DC plans
through plan sponsors' increasing use
of outsourced chief investment officers,
Perkins says. The OCIO team includes
alts in white label funds it creates for its
clients.
The most growth is with plans that
operate under the Employee Retirement
Income Security Act, Venter says. " Our
DC real estate solutions are available only
to qualified plans. "
And while public 457 non-ERISA
plans have also included real estate, " it's
mostly the ERISA plans, as the market has
evolved [only] to this point, " Venter says.
Alts also find
their way into
DC plans through
plan sponsors'
increasing use
of outsourced
chief investment
officers.
For plan sponsors interested in, but
yet to implement, alts, the greatest inhibitor
continues to be fees, Venter says. She
points to the excessive fee claims often
made in ERISA lawsuits against retirement
plan sponsors.
Still, in an era of cost compression
among major investment product
10 PLANSPONSOR.COM August - September 2022
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PLANSPONSOR - August - September 2022

Table of Contents for the Digital Edition of PLANSPONSOR - August - September 2022

INSIGHTS
INDUSTRY ANALYSIS
RULES AND REGULATIONS
UPFRONT
Key Player
Ever Vigilant
Open Season
Simplify the Experience
Connecting One-on-One
The Cost of Protection
FIDUCIARY FORUM
INSIDE ANGLE
PLAN PROFILE
PLANSPONSOR - August - September 2022 - Cover1
PLANSPONSOR - August - September 2022 - Cover2
PLANSPONSOR - August - September 2022 - 1
PLANSPONSOR - August - September 2022 - INSIGHTS
PLANSPONSOR - August - September 2022 - 3
PLANSPONSOR - August - September 2022 - INDUSTRY ANALYSIS
PLANSPONSOR - August - September 2022 - 5
PLANSPONSOR - August - September 2022 - RULES AND REGULATIONS
PLANSPONSOR - August - September 2022 - 7
PLANSPONSOR - August - September 2022 - 8
PLANSPONSOR - August - September 2022 - 9
PLANSPONSOR - August - September 2022 - UPFRONT
PLANSPONSOR - August - September 2022 - 11
PLANSPONSOR - August - September 2022 - 12
PLANSPONSOR - August - September 2022 - 13
PLANSPONSOR - August - September 2022 - 14
PLANSPONSOR - August - September 2022 - 15
PLANSPONSOR - August - September 2022 - Key Player
PLANSPONSOR - August - September 2022 - 17
PLANSPONSOR - August - September 2022 - 18
PLANSPONSOR - August - September 2022 - 19
PLANSPONSOR - August - September 2022 - 20
PLANSPONSOR - August - September 2022 - 21
PLANSPONSOR - August - September 2022 - Ever Vigilant
PLANSPONSOR - August - September 2022 - 23
PLANSPONSOR - August - September 2022 - 24
PLANSPONSOR - August - September 2022 - 25
PLANSPONSOR - August - September 2022 - 26
PLANSPONSOR - August - September 2022 - 27
PLANSPONSOR - August - September 2022 - 28
PLANSPONSOR - August - September 2022 - 29
PLANSPONSOR - August - September 2022 - Open Season
PLANSPONSOR - August - September 2022 - 31
PLANSPONSOR - August - September 2022 - Simplify the Experience
PLANSPONSOR - August - September 2022 - 33
PLANSPONSOR - August - September 2022 - Connecting One-on-One
PLANSPONSOR - August - September 2022 - 35
PLANSPONSOR - August - September 2022 - The Cost of Protection
PLANSPONSOR - August - September 2022 - 37
PLANSPONSOR - August - September 2022 - FIDUCIARY FORUM
PLANSPONSOR - August - September 2022 - INSIDE ANGLE
PLANSPONSOR - August - September 2022 - PLAN PROFILE
PLANSPONSOR - August - September 2022 - Cover3
PLANSPONSOR - August - September 2022 - Cover4
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