JERSEY CITY, N.J., March 26, 2015 /PRNewswire/ -- Pershing
Prime Services today announced the release of a new paper to help
alternative fund managers better understand what to consider when
looking to include liquid alternatives in defined contribution (DC)
plans. The paper, Liquid Alternatives and the Opportunity in
Defined Contribution Plans, is the latest in Pershing Prime
Services' Executive Insights series, which was developed to provide
fund managers with information on the liquid alternatives
convergence movement.
According to the paper, the retirement market may be the next
frontier for the growth of liquid alternatives. As plan advisors
are increasingly focused on new strategies to improve plan
participant outcomes, liquid alternatives may present an
opportunity to diversify retirement portfolios. The paper
underscores the critical role that education will play in the
adoption of liquid alternatives among DC plan fiduciaries, advisors
and participants.
"The potential expansion into DC plans presents an opportunity
for liquid alternative managers to help DC plan advisors understand
how this asset class can fit into plan participants' retirement
portfolios," said Mark Aldoroty,
head of sales and relationship management for Pershing Prime
Services. "As all parties become more comfortable with
alternatives, the opportunity to include them in a plan's
investment strategy is likely to expand."
Since liquid alternatives are relatively new and don't come with
a decades-long benchmarking history, fact-based education and
training will play a central role in their adoption by DC plan
fiduciaries, advisors and participants. Education should focus on
both the benefits and risks of these investments in a portfolio,
according to the paper. The paper also points out the need to
change the conversation around risk in 401k plans from investment
selection risk to retirement adequacy risk.
"At a time when strategic retirement planning is crucial to so
many participants, there is a greater expectation among
participants for more investment options that fit their retirement
savings goals," said Rob Cirrotti,
head of retirement solutions at Pershing. "DC plan fiduciaries
should educate themselves on new products and explore whether these
products will fit into their DC plan investment menu."
The paper also explores:
- Elements of an attractive DC plan-focused alternative
offering
- How fund managers can address common reservations among plan
advisors and fiduciaries
- What DC plan advisors should consider communicating to DC plan
fiduciaries
- Critical evaluations for DC plans to make when considering
alternative investments
To obtain a copy of the full paper, visit
https://www.pershing.com/assets/whitepapers/liquid-alternatives-and-the-opportunity-in-defined-contribution-plans.html.
About Pershing Prime Services
Pershing Prime Services, the New Model Prime Broker™, delivers a
comprehensive suite of prime brokerage solutions. We provide stable
counterparty strength, extensive access to lendable securities,
alternative sources of finance, dedicated client service, robust
reporting tools, global execution and custodial solutions through
the integrated platform of BNY Mellon. Pershing Prime Service is a
service of Pershing LLC.
About Pershing
Pershing and its affiliates provide global financial business
solutions to advisors, asset managers, broker-dealers, family
offices, registered investment advisor firms and wealth managers. A
financial services firm located in 23 offices worldwide, Pershing
provides business-to-business solutions to clients representing 5.8
million active investor accounts on the U.S. platform. Pershing
affiliates are members of every major U.S. securities exchange, and
its international affiliates are members of the Deutsche Borse,
Australian Stock Exchange, Irish Stock Exchange, London Stock
Exchange and Toronto Stock Exchange. Pershing LLC (member
FINRA/NYSE/SIPC) is a BNY Mellon company. Additional information is
available on pershing.com, or follow us on Twitter @Pershing.
About BNY Mellon
BNY Mellon is a global investments company dedicated to helping
its clients manage and service their financial assets throughout
the investment lifecycle. Whether providing financial services for
institutions, corporations or individual investors, BNY Mellon
delivers informed investment management and investment services in
35 countries and more than 100 markets. As of Dec. 31, 2014,
BNY Mellon had $28.5 trillion in assets under custody
and/or administration, and $1.7 trillion in assets under
management. BNY Mellon can act as a single point of contact for
clients looking to create, trade, hold, manage, service, distribute
or restructure investments. BNY Mellon is the corporate brand of
The Bank of New York Mellon Corporation (NYSE: BK). Additional
information is available on www.bnymellon.com, or follow us on
Twitter @BNYMellon.
Contact:
Paul
Patella
+1 201 413
3609
paul.patella@pershing.com
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visit:http://www.prnewswire.com/news-releases/pershing-prime-services-shares-key-insights-for-alternative-fund-managers-looking-to-defined-contribution-plans-as-a-growth-opportunity-300056565.html
SOURCE BNY Mellon