Liana Magner, Head of Retirement and Institutional in the U.S. for Natixis Investment Managers, joined Zoe Hunt, Host of RIA Channel, to discuss the evolving retirement landscape and trends across defined contribution (DC) and 401(k) plans.
Looking at broader market trends, Magner notes a shift toward lower-cost and passive investment options. However, she explains that most plans continue to offer a combination of low-cost index funds, active core investments, and target date funds.
Meanwhile, Magner finds that the 401(k) space has seen limited innovation in recent years, pointing to litigation surrounding underperforming and high-cost funds as contributing factors to the shift toward more streamlined 401(k) plan lineups.
As interest in alternative investments also grows, Magner highlights the challenges of incorporating higher-cost, less-liquid alternative investments into daily-liquid DC plans. She discusses the Department of Labor’s proposed rule on alternative investments, which aims to provide guidance on investment selection and fiduciary considerations as plan sponsors evaluate these investments. Magner also notes that pooled employer plans are gaining traction.
Looking ahead, Magner encourages plan sponsors to continue tracking market trends, emphasizing the importance of strong governance structures and clearly defined processes for selecting and monitoring investments. She also highlights how Natixis Investment Managers’ platform of affiliated boutique investment managers can offer a range of solutions across different investment philosophies and management teams.
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