NEPC Partner and Corporate Solutions Leader Aaron Chastain shared his perspective with Pensions & Investments on the growing demand for delegated investment services and how plan sponsors can selectively outsource certain responsibilities without taking an all-or-nothing approach. Read the full article for his insights.
Plan sponsors increasingly want advisers to play a bigger role in investment decisions, and the recent Department of Labor proposal on investment alternatives in defined contribution plans could further fuel that appetite.
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Aaron Chastain, partner and corporate solutions leader at NEPC, said the firm’s corporate-client discretionary assets have increased about 4.5 times over the last five years.
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Chastain said he expects some sponsors to keep a 3(21) adviser for most of the plan, while handing off manager selection or operations for a specific sleeve — such as alternatives — to a 3(38) manager.”
“Using an external party or outsourcing doesn’t have to be an all-or-nothing type approach,” Chastain said.