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Investment Options and Best Practices
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Welcome to DCIIA's online resource library for DCIIA and member thought leadership. If you have resources to contribute in this topic area contact us at

DCIIA posts links to member content as a service to our members, plan sponsors, and the broader retirement industry. Some sites may require registration. Posting these links does not imply endorsement and we are not responsible for non-DCIIA content. Please advise us of any broken links or other updates.

DCIIA Resources

Managed Accounts: Due Diligence and Implementation Considerations
 September 2020

In this second-in-a-series white paper, we discuss how plan sponsors can determine whether managed accounts could be right for their plans. Contributors: Jerry Yen, Advice Analytics; William Ryan, Aon; James Veneruso, Callan; Angelo Auriemma, Mercer; David Blanchett, Morningstar; Sara Shean, PGIM; Mikaylee O’Connor, RVK; Deb Boyden, Schroders.

Managed Accounts: A Primer
 August 2020

This paper includes a review of the basics of managed accounts, a summary of their usage over time, a description of how they can be offered, and considerations for determining if they are right for a particular DC plan, and if so, in what ways. Contributors: Eileen Kwei, Artisan Partners; Bridget Bearden, Edelman Financial Engines; Geoff Balzano and David Blanchett, Morningstar; Steve Ferber, PIMCO; Mikaylee O’Connor, RVK; Jed Petty, Wellington.

Considerations for Offering Private Equity in Defined Contribution Plans
July 2020

This paper provides a brief overview of the Dept. of Labor's Information Letter and some initial takeaway considerations. Contributors: Bill Ryan, Aon; David Levine and Kevin Walsh, Groom Law Group; Marla Kreindler, Morgan, Lewis & Bockius; Steve Ferber, PIMCO.

Managing Through the Crisis: Investment Lineups
May 2020

In this webinar, hear from Katie Hockenmaier, Mercer; Bill Ryan, Aon; Jeri Savage, Rocaton; Kevin Vandolder, DiMeo Schneider; and Michael Andeberhan, MSCI. Archived webinars are exclusively available to DCIIA members and plan sponsors -- please be sure you are logged in to the website to access.

Managing Through the Crisis: The State of QDIAs
May 2020

In this webinar, hear from David Blanchett, Morningstar; Joe DeNoyior, HUB | Washington Financial Group; Liana Magner, Mercer; Sharon Scanlon, Lincoln Financial Group; and Tom Foster, The Retirement Advisor University.Archived webinars are exclusively available to DCIIA members and plan sponsors -- please be sure you are logged in to the website to access.
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Custom Target Date Fund (cTDF) Survey
May 2020

This report provides DCIIA members and the broader retirement-plan community with a previously unavailable overview of custom TDFs. DCIIA’s summary report of this information is intended to inform discussions among plan sponsors, asset allocators, and asset managers. Contributors: Chris Nikolich, AB; Warren Cormier and Amanda McCormick, DCIIA RRC; Joshua Dietch, T. Rowe Price.

Implementing White Label and Custom Target Date Funds
October 2019

In this webinar, hear from Winfield Evens, Alight Solutions; Chris Nikolich, AllianceBernstein; Bill Ryan, Aon; Tony Tomich, Farmers Insurance; and Lauren Titus, Nokia. Archived webinars are exclusively available to DCIIA members and plan sponsors -- please be sure you are logged in to the website to access.
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Custom Target Date Funds: Highlights from DCIIA's Inaugural Study
March 2019

In this webinar, hear from Josh Dietch, T. Rowe Price; Brett Hammond, Capital Group; and Chris Nikolich, AllianceBernstein. Archived webinars are exclusively available to DCIIA members and plan sponsors -- please be sure you are logged in to the website to access.
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Global Retirement Income Systems
February 2018

In this webinar, hear from Jacqueline Lommen, State Street Global Advisors; Darren Philp, The People's Pension; and Aron Szapiro, Morningstar. Archived webinars are exclusively available to DCIIA members and plan sponsors -- please be sure you are logged in to the website to access.
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The Role of Real Estate in DC Plans
November 2017

In this webinar, hear from Jimmy Veneruso, Callan; Toni Brown, American Funds; Craige Stone, Utah Retirement Systems; John Cunniff, TIAA Investments; and John Worth, NAREIT. Archived webinars are exclusively available to DCIIA members and plan sponsors -- please be sure you are logged in to the website to access.

Understanding Commonly Used Investment Vehicles in DC Plans
October 2017

In this webinar, hear from Krista Cooper, Alight Solutions; Kevin Hanney, United Technologies Corporation; Marla Kreindler, Morgan, Lewis & Bockius; and Michael Riak, Pantheon. Archived webinars are exclusively available to DCIIA members and plan sponsors -- please be sure you are logged in to the website to access.

Multi-Asset, Multi-Manager, and White Label Investment Options
September 2017

DCIIA has leveraged member expertise to prepare a comprehensive overview that represents input from our diverse membership base -- asset managers, consultants, recordkeepers, and more. To view highlights of this content as a web page, please visit “DC 101.”

The Role of Real Estate in DC Plans
June 2017

This slide-deck format piece provides an overview of real estate as an asset class and discusses investment merits, implementation considerations, common operational issues, and offers a decision tree.

A Guide to Commonly Used DC Plan Investment Vehicles
January 2017

This slide-deck format publication is intended to provide a better understanding of the various investment vehicles that are commonly used within DC plans, their benefits and drawbacks, and considerations for deciding which structure to use.

Capturing the Benefits of Illiquidity
September 2015

This slide-deck format piece outlines best practices in integrating illiquid investments into defined contribution plan portfolios.

Implementing Illiquid Assets in Defined Contribution Plans: A 360° Perspective
September 2015

In this webinar, hear from Dick Davies, AllianceBerstein; David Zug, HarbourVest; Marla Kreindler, Morgan, Lewis & Bockius; Kathy MacVarish, State Street Global Advisors; and Stuart Odell, Intel. Archived webinars are exclusively available to DCIIA members and plan sponsors -- please be sure you are logged in to the website to access.
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Qualifying Longevity Annuity Contracts (QLAC)
Frequently Asked Questions, December 2014

This resource seeks to provide clarification on common questions that plan sponsors and their advisors may have regarding regulations issued by the U.S. Treasury and IRS in July 2014 regarding longevity annuities.

Collective Investment Trusts
October 2014

In this webinar, hear from Marty Campbell, Reliance Trust; Michael Raso, Old Mutual Asset Management; and Charles Horn, Morgan, Lewis & Bockius. Archived webinars are exclusively available to DCIIA members and plan sponsors -- please be sure you are logged in to the website to access.

Is it Time to Diversify DC Risk with Alternative Investments?
May 2013

DCIIA believes that DC plan sponsors should consider adding an investment offering that provides better risk balance, in an attempt to enhance returns and to reduce the volatility that the typical plan participant experiences. One solution is to provide access to an asset category broadly referred to as “alternatives.”

What's on the Investment Menu?
A Recipe for a Better DC Design, April 2013

This paper seeks to provide a framework for designing DC menus to improve plan participant experiences and outcomes. We review how menu design has evolved historically, discuss the objectives and philosophies of various sponsors, define menu construction frameworks, and present considerations for creating an effective investment menu.

The "To vs. Through" Target Date Debate
Is There a Better Way to Frame the Glide Path Discussion? – Feb 2012

While many DCIIA member firms hold definite views about the most appropriate way to construct a target date asset allocation and glide path, in this paper we have worked collectively to create an objective and balanced presentation of the factors to be considered in selecting or building target date portfolios.

Considerations for Implementing a Custom Target Date Approach:
A Guide for Defined Contribution Plan Sponsors, March 2011

This guide is designed to help plan sponsors understand the operational considerations when deciding to offer custom target date funds in a defined contribution plan.

Member Resources

Private Equity in Defined Contribution Plans
August 2020

Neuberger Berman notes that private equity has long been the subject of interest—if not action—from defined contribution plan sponsors. This article discusses the asset class in light of the U.S. Department of Labor’s recently issued, related information letter.

Rethinking the Role of Fixed Income Along the Retirement Savings Journey
June 2020

This paper from MFS takes the retirement savings journey from theory to practice by sharing views on how fixed income should evolve across a glide path, exploring both the absolute level of the fixed income allocation and its composition in terms of fixed income sub-asset classes.

What’s Old is New Again: Collective Investment Trusts Reduce Plan Costs
April 2020

AllianceBernstein notes, "With pressure mounting on employers to offer participants reasonable, cost-efficient investment options and also fulfill their fiduciary duty in a world of increasing litigation, CIT use continues to grow rapidly."

Turning Off Auto Pilot: Why There is More to Retirement Planning than the "Glide-path"

Schroders notes, "we believe the typical asset allocation approach used by target-date funds falls short of delivering the best possible retirement outcomes for investors by not reacting to market conditions dynamically."

Location, Location, Location: Why Does Geospatial Data Science Matter for Investors?
December 2019

Schroders looks at how geospatial data science is helping investors find new ways of looking at the world and make better investment decisions.

Cookie Cutter or Custom? Rethinking Fixed Income in DC Plans
September 2019

In this white paper from Wellington Management, they note "In the DC plan space, we have historically seen heavy use of core bond and core-plus strategies … as DC plans have grown in size, plan sponsors have increasingly been open to adopting a more customized approach in the form of a multi manager fixed income option. This type of custom solution may provide some compelling benefits...”

Microcaps: Value Uncovered
June 2019

DGHM discusses how microcap equities prove to be a source of persistent alpha, outperforming large cap equities over time.

QDIA Evolutions — Moving Defined Contribution Plans Into the Future
April 2019

Willis Towers Watson notes: “From an investment perspective, we believe the qualified default investment alternative (QDIA) is the most direct way to impact retirement readiness given the increase in auto-features such as automatic enrollment (recent data show that 73% of plans automatically re-enroll versus 52% in 2009).”

Diversification is Good (Right?)
March 2019

Northern Trust provides investment insights, noting that “Investors are getting used to the decade-long bull market, but economic cycles haven’t gone away. Their portfolios should be prepared.”

The Impact of Managed Accounts on Participant Savings and Investment Decisions
March 2019

Morningstar writes: “In this paper, we explore the impact managed accounts can have on participants’ savings and investing habits based on whether they’re on track to meet their retirement goals and whether they built their own portfolios (or picked from portfolios already built) before entering a managed accounts service.”

Unfolding the Managed Accounts Fee Enigma
March 2019

In this blog post, Aon notes: “Based on our understanding of the managed accounts service models as well as ERISA requirements, we believe that managed accounts providers need to be more proactive in disclosing direct or indirect compensation received from DC plan assets as well as shared revenue between managed accounts providers and recordkeepers.”

Man or Machine - Who's Really Driving Your Portfolio?
February 2019

Schroders notes: “As interest in artificial intelligence increases, attention has turned to the possibility of its application to the asset management industry.”

Real Estate in Participant Directed Defined Contribution Plans: Fiduciary Considerations
January 2019

Cohen & Steers summarizes the fiduciary requirements imposed by ERISA on sponsors of participant-directed defined contribution plans for the selection of investments, discusses the considerations for selecting real estate as one of the asset classes in a plan and also notes the factors to be considered in selecting a specific type of real estate investment.

REITs: Answering the Call for DC Plan Diversification
November 2018

Cohen & Steers notes: “For fiduciaries looking to enhance diversification in defined contribution plans, we believe REITs can be a simple and effective addition to investment lineups, offering a long track record of benefiting investors and characteristics that may be well suited to the needs of DC plans.”

The Future of Investment Management
October 2018

The Fidelity Global Institutional Investor Survey: 11th Edition

The Changing Investment Ecosystem
September 2018

This special report by the Fidelity Research Institute focuses on one topic from the survey: How the investment industry itself will be transformed over the next seven years.

The Fidelity Global Institutional Investor Survey: The Future of Investment Management
September 2018

An overview of the Fidelity Global Institutional Investor Survey

The Value of Managed Account Advice
September 2018

A new Vanguard research paper shows that most participants benefit from managed account advice.

Made to Measure: Evaluating the Impact of a Retirement Managed Account
August 2018

Great-West Financial | Empower Retirement's feature-by-feature estimate finds that a robust retirement managed account provides 55 to 92 basis points (bps) of value for unengaged participants and 152 to 258 bps for engaged participants. In presenting a method for valuing managed accounts, we also delineate the menu of features that may be offered through a managed account investment option in a defined contribution plan.

Considering Custom for Your DC Plan
June 2018

Vanguard’s discussion of the potential benefits and drawbacks of including nonstandard investment options in a defined END---->

Does a Custom Portfolio Suit Your Needs?
June 2018

Vanguard partners with plan sponsors and consultants to analyze the appropriateness of custom alternatives for DC plans.

The Evolution of Target Date Funds: Using Alternatives to Improve Retirement Plan Outcomes
June 2018

A report from WillisTowersWatson, in conjunction with Georgetown University's McCourt School of Public Policy Center for Retirement Initiatives, notes that an advantage offered by TDFs is that the underlying investments can be broadened to include asset classes that have traditionally benefitted other types of long-term investment pools, such as DB plans, without increasing complexity for the participant.

Tomorrow's Target Date Portfolios: Ideas for Better Retirement Outcomes
June 2018

Wellington Management writes: “To combat the three main risks to retirement security — longevity, drawdown, and inflation — we believe target-date portfolios should aim to protect against downside risk, particularly near retirement; be truly diversified; and be actively managed.”

Considering Custom for your DC Plan
June 2018

This Vanguard commentary discusses the potential benefits and drawbacks of including nonstandard investment options, particularly white-label funds, in a 401(k) plan. Does customization provide potential benefits to plan participants that outweigh any additional responsibilities and costs assumed by the plan sponsor?

Choice Architecture and Participant Investment Decisions
May 2018

Vanguard notes that the way sponsors design defined contribution plans can help reduce costs and risk exposure for participants.

Foundations of ESG Investing Part 3: Integrating ESG into Passive Institutional Portfolios
May 2018

In part three of a series on ESG, MSCI focuses on how ESG can be integrated into passive allocations using MSCI ESG Ratings, which, while not indicative of future results, provided better risk-adjusted returns from August 2010 to December 2017 than the MSCI ACWI Index.

Understanding Collective Investment Trusts
May 2018

Published May 2018 by Jed Petty, Brendan MacKenzie and Matt McMenamy of Wellington Management. To help plan sponsors who are constructing or modifying an investment menu, this paper can serve as an educational piece highlighting the main similarities and differences between CITs and mutual funds.

Combining Active and Index Strategies to Achieve a Desired Outcome
April 2018

Vanguard invites you to discover ways to help strike a balance between active and passive investment strategies.

Snapshots of TDF Performance Miss the Big Picture
March 2018

Vanguard invites you to learn why plan sponsors should always look at the big picture when evaluating target-date retirement funds (TDFs).

The ABCs of NQDCs: They’re Not DC Plans, Despite the Similarities
March 2018

Callan notes that non-qualified deferred compensation plans (NQDCs) may look and sound like qualified DC plans, but the two are actually quite different. NQDC plans are targeted at a small number of high-paid employees, and managing the investment menu and associated liabilities of NQDC plans is quite different from managing a DC plan. And assuming certain preliminary conditions are met, NQDC plans are usually not subject to the fiduciary and reporting requirements of the Employee Retirement Income Security Act (ERISA). This commentary explores approaches to designing the NQDC plan investment menu as well as some of the considerations around informally funding the liabilities.

A Smoother Ride for Near Retirees: Incorporating Equity Index Put Writing into Near-Dated Target Date Funds
March 2018

In this article, Neuberger Berman notes, “At the end of the day, participants nearing retirement need strategies that seek both to mitigate risk and to provide growth potential. We believe replacing a portion of a near-dated target date fund’s equity exposure with a collateralized put write strategy—an option strategy in which the portfolio manager systematically sells fully collateralized short-dated put options on a variety of indexes in an effort to generate equity-like returns with lower volatility over time—can help in this pursuit.”

The Efficient Investor: A New, Low-Cost Approach to Investing and Managing Wealth
January 2018

Retail investment management prices have dropped by more than 50 percent over the past 35 years, which is widely seen as a boon to investors because they maintain more of their wealth over time. But the benefits of lower prices may be undermined by other, non-fee costs created from features that are oversimplified or imprecise in investment products and wealth management services. To assess this potential, United Income analyzed 62 different retirement solutions in the market and over 26,000 potential combinations of future market returns (from highly bearish to bullish)

Inside America’s Savings Plans

In this report, Ascensus notes, “What types of specialized accounts are Americans using to save for the future? When are they starting to save? And how much progress have they made toward their savings goals? Our recordkeeping data across 401(k), 529, ABLE, and health savings accounts offer some preliminary answers to these questions.”

Is Passive Truly the Safer Fiduciary Choice for TDFs?

Capital Group writes that, “The beauty of a TDF is its simplicity for participants.” However, its underlying complexity can challenge committees tasked with assessing a TDF’s glide path design, risk/return profile and fee structure as part of fiduciary due diligence. One of the considerations is whether the TDF should be actively or passively managed. In either case, appropriate due diligence must be conducted.

Defined Contribution Investments on Trial: In Defense of an Institutional Approach

In this post and related white paper, PGIM notes, “Adopting an institutional mindset is imperative to driving successful outcome for participants, but how exactly is an Institutional Investment approach defined?”

Designing the Future of Target-Date Funds
February 2017

AllianceBernstein has researched and developed an improved glide path design that will potentially reduce risk and build more retirement income—and better equip America’s workers for retirement’s financial needs.

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