PLANADVISER - March/April 2019 - 50
investment-oriented
The Role of Alternatives
These asset classes can soothe the effects of market volatility
" S
tocks for the long run! " is the
familiar admonition by academics
to individual investors.
Sure, equities might earn the highest
nominal returns, but they also bring
plenty of unnerving volatility. Institutional
investors have long relied
on alternative investments to shelter
participants from market storms.
While some of these assets are available
to defined contribution (DC) plan
investors, plan sponsors have typically
shunned them to avoid complicating
their plans and to hold the line on costs.
Alternative investments can be
defined in terms of their unconventional
asset classes, such as real estate,
private equity, infrastructure and
commodities, or by their strategies,
such as hedge funds that
invest
in
public equities and bonds, but through
an unconventional approach. What is
essential is that they deliver return
streams unaffiliated with mainstream
equities and bonds. " With alternatives,
an investor would get superior returns,
superior risk management, or both,
and wind up on a better, more efficient
frontier, " notes Anne Lester, head of
retirement solutions for J.P. Morgan
Asset Management in New York.
Alternative asset-class returns are
distinctive because they are driven by
different economic forces than those
affecting public companies. Commercial
real estate, private equity and infrastructure
go through longer investment
and revenue cycles. Commodities
can be favorably reactive to inflation
shocks, and alternative strategies such
as hedge funds produce returns reliant
on specialized manager skills. Accordingly,
institutional investors, with long
time horizons and few liquidity requirements,
have relied on alternatives for
decades. However, their illiquidity and
infrequent valuations are obstacles for
defined contribution plans.
" From an investment perspective,
we believe in alternatives, " says Wyatt
50 | planadviser.com March-April 2019
Art by Henrik Drescher
http://www.planadviserdigital.com/planadviser/march_april_2019/TrackLink.action?pageName=50&exitLink=http%3A%2F%2Fplanadviser.com
PLANADVISER - March/April 2019
Table of Contents for the Digital Edition of PLANADVISER - March/April 2019
2019 PLANSPONSOR Retirement Plan Advisers of the Year
Coaching the Committee
When Savers Exceed the Limit
The Role of Alternatives
Buyer Beware!
Are Personal Advisers ERISA Fiduciaries
Unrelated Taxable Income and Pensions
An IPS Is Not Required
PLANADVISER - March/April 2019 - C1
PLANADVISER - March/April 2019 - FC1
PLANADVISER - March/April 2019 - FC2
PLANADVISER - March/April 2019 - C2
PLANADVISER - March/April 2019 - 1
PLANADVISER - March/April 2019 - 2
PLANADVISER - March/April 2019 - 3
PLANADVISER - March/April 2019 - 4
PLANADVISER - March/April 2019 - 5
PLANADVISER - March/April 2019 - 6
PLANADVISER - March/April 2019 - 7
PLANADVISER - March/April 2019 - 8
PLANADVISER - March/April 2019 - 9
PLANADVISER - March/April 2019 - 10
PLANADVISER - March/April 2019 - 11
PLANADVISER - March/April 2019 - 12
PLANADVISER - March/April 2019 - 13
PLANADVISER - March/April 2019 - 14
PLANADVISER - March/April 2019 - 15
PLANADVISER - March/April 2019 - 16
PLANADVISER - March/April 2019 - 17
PLANADVISER - March/April 2019 - 18
PLANADVISER - March/April 2019 - 19
PLANADVISER - March/April 2019 - 20
PLANADVISER - March/April 2019 - 21
PLANADVISER - March/April 2019 - 2019 PLANSPONSOR Retirement Plan Advisers of the Year
PLANADVISER - March/April 2019 - 23
PLANADVISER - March/April 2019 - 24
PLANADVISER - March/April 2019 - 25
PLANADVISER - March/April 2019 - 26
PLANADVISER - March/April 2019 - 27
PLANADVISER - March/April 2019 - 28
PLANADVISER - March/April 2019 - 29
PLANADVISER - March/April 2019 - 30
PLANADVISER - March/April 2019 - 31
PLANADVISER - March/April 2019 - 32
PLANADVISER - March/April 2019 - 33
PLANADVISER - March/April 2019 - 34
PLANADVISER - March/April 2019 - 35
PLANADVISER - March/April 2019 - 36
PLANADVISER - March/April 2019 - 37
PLANADVISER - March/April 2019 - 38
PLANADVISER - March/April 2019 - 39
PLANADVISER - March/April 2019 - 40
PLANADVISER - March/April 2019 - 41
PLANADVISER - March/April 2019 - Coaching the Committee
PLANADVISER - March/April 2019 - 43
PLANADVISER - March/April 2019 - 44
PLANADVISER - March/April 2019 - 45
PLANADVISER - March/April 2019 - When Savers Exceed the Limit
PLANADVISER - March/April 2019 - 47
PLANADVISER - March/April 2019 - 48
PLANADVISER - March/April 2019 - 49
PLANADVISER - March/April 2019 - The Role of Alternatives
PLANADVISER - March/April 2019 - 51
PLANADVISER - March/April 2019 - Buyer Beware!
PLANADVISER - March/April 2019 - 53
PLANADVISER - March/April 2019 - Are Personal Advisers ERISA Fiduciaries
PLANADVISER - March/April 2019 - Unrelated Taxable Income and Pensions
PLANADVISER - March/April 2019 - An IPS Is Not Required
PLANADVISER - March/April 2019 - C3
PLANADVISER - March/April 2019 - C4
https://www.planadviserdigital.com/planadviser/winter_2023
https://www.planadviserdigital.com/planadviser/fall_2023
https://www.planadviserdigital.com/planadviser/summer_2023
https://www.planadviserdigital.com/planadviser/industryleader_2023
https://www.planadviserdigital.com/planadviser/spring_2023
https://www.planadviserdigital.com/planadviser/november_december_2022
https://www.planadviserdigital.com/planadviser/september_october_2022
https://www.planadviserdigital.com/planadviser/july_august_2022
https://www.planadviserdigital.com/planadviser/may_june_2022
https://www.planadviserdigital.com/planadviser/industry_leader_awards_2022
https://www.planadviserdigital.com/planadviser/march_april_2022
https://www.planadviserdigital.com/planadviser/january_february_2022
https://www.planadviserdigital.com/planadviser/november_december_2021
https://www.planadviserdigital.com/planadviser/september_october_2021
https://www.planadviserdigital.com/planadviser/july_august_2021
https://www.planadviserdigital.com/planadviser/may_june_2021
https://www.planadviserdigital.com/planadviser/march_april_2021
https://www.planadviserdigital.com/planadviser/january_february_2021
https://www.planadviserdigital.com/planadviser/november_december_2020
https://www.planadviserdigital.com/planadviser/september_october_2020
https://www.planadviserdigital.com/planadviser/july_august_2020
https://www.planadviserdigital.com/planadviser/may_june_2020
https://www.planadviserdigital.com/planadviser/march_april_2020
https://www.planadviserdigital.com/planadviser/january_february_2020
https://www.planadviserdigital.com/planadviser/november_december_2019
https://www.planadviserdigital.com/planadviser/september_october_2019
https://www.planadviserdigital.com/planadviser/july_august_2019
https://www.planadviserdigital.com/planadviser/may_june_2019
https://www.planadviserdigital.com/planadviser/march_april_2019
https://www.planadviserdigital.com/planadviser/january_february_2019
https://www.planadviserdigital.com/planadviser/november_december_2018
https://www.planadviserdigital.com/planadviser/september_october_2018
https://www.planadviserdigital.com/planadviser/july_august_2018
https://www.planadviserdigital.com/planadviser/may_june_2018
https://www.planadviserdigital.com/planadviser/march_april_2018
https://www.planadviserdigital.com/planadviser/january_february_2018
https://www.planadviserdigital.com/planadviser/november_december_2017
https://www.planadviserdigital.com/planadviser/september_october_2017
https://www.planadviserdigital.com/planadviser/july_august_2017
https://www.nxtbookmedia.com