Bigger DC plans have a tendency to supply fewer diversifiers than smaller plans and, consequently, allocate a higher share of property to extra conventional asset courses. This can be a considerably shocking discovering, provided that bigger plans are sometimes extra accustomed to the potential advantages of different investments, notably those who additionally sponsor outlined profit plans. In principle, bigger plans also needs to have higher entry to specialised funding choices, together with personal property, than smaller plans. How this obvious disconnect evolves shall be value watching.
Taken collectively, these developments recommend that asset allocation inside DC core menus is formed not solely by deliberate portfolio building, but in addition by defaults, availability, and plan design selections. For funding professionals, understanding how these forces work together is more and more vital as DC plans proceed to play a bigger position in retirement financial savings.
[1] Cerulli (2025)
