Practical Applications of The Case for Liquid Alternatives in Defined-Contribution Plans

Abstract

“We know that retirees need to save more, and plan sponsors have access to investment tools that can help them meet their retirement goals,” says Scott Kilgallen of Neuberger Berman, the co-author of a recent article that explains why DC plan sponsors should consider adding liquid alts to their fund lineups and discuss common approaches and structures. Liquid alts provide a useful way to include hedge fund–like strategies without some of the drawbacks of traditional hedge fund vehicles. “The question is always, how can you achieve better returns over a range of market environments? Liquid alts may complement other asset class offerings in a portfolio by seeking to lower overall portfolio volatility,” says co-author David Kupperman (also of Neuberger Berman).