A Dynamic Asset Allocation Approach for Selecting a 401K QDIA

@article{Grennon2014ADA,
  title={A Dynamic Asset Allocation Approach for Selecting a 401K QDIA},
  author={Terry Grennon},
  journal={Labor: Personnel Economics eJournal},
  year={2014}
}
  • Terry Grennon
  • Published 2014
  • Business
  • Labor: Personnel Economics eJournal
The selection of the asset allocation and target date mutual funds that are used as qualified default investment alternative (QDIA) options for 401k participants are driven today by strategic asset allocation, risk and target retirement start dates. This paper details a dynamic asset allocation approach to be used for selecting a QDIA which uses forward looking return assumptions and the Sharpe Ratio for selection.