What DB Plans Can Learn From Endowment Investing
Alternative investments and private assets might help defined benefit plans diversify and generate more returns. Reported by The endowment model for investing suggests that long-term investors with access to illiquid investment opportunities, such as higher education institutions, should have relatively high allocations to alternative assets, which can help them earn greater returns. Like endowments, defined benefit (DB) plans are also long-term investors, though many DB plans have different liquidity needs than higher education institutions. Still, sources say, DB plans can take some cues fr...
Source: plansponsor.com