Portfolio Construction

Fiduciary Considerations for Adding Liquid Alternative Investment Strategies to DC Plans and Target-Date Funds

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Fiduciary Considerations for Adding Liquid Alternative Investment Strategies to DC Plans and Target-Date Funds

Question and Answer

Amy Pocino Kelly and Julie Stapel, both experienced ERISA attorneys and partners with law firm Morgan, Lewis & Bockius, LLP, talked with Robert Capone, Head of Defined Contribution and Sub Advisory at AQR, to discuss fiduciary due diligence considerations for defined contribution (DC) plans when considering whether to incorporate alternative asset classes and strategies.

In this short paper, they address such matters as:

  • The due diligence that plan fiduciaries need to undertake when considering alternative strategies.
  • The need for “enhanced” due diligence in selecting particular alternative strategies and asset classes.
  • Whether fiduciary risks differ based on the investment strategy in question.

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of AQR Capital Management, LLC, its affiliates or its employees.

 

The information contained herein is only as current as of the date indicated, and may be superseded by subsequent market events or for other reasons. Neither the author nor AQR undertakes to advise you of any changes in the views expressed herein.

 

This information is not intended to, and does not relate specifically to any investment strategy or product that AQR offers. It is being provided merely to provide a framework to assist in the implementation of an investor’s own analysis and an investor’s own view on the topic discussed herein.

 

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