The United States is falling behind other countries in offering alternative investments in defined contribution plans, said speakers at the Defined Contribution Institutional Investment Association Academic Forum, reported a Plan Sponsor article. The speakers also argued that these illiquid asset classes provide participants a significant opportunity for growth.
United States plans allocate about 1.1 percent of assets in target-date funds to alternatives and 1.9 percent of assets in balanced options to alternatives. In comparison, Australian DC plans — the most competitive DC market in the world — allocate about 25.3 percent of assets under management in alternatives.
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