An Efficient Defined Contribution Investing Approach

  title={An Efficient Defined Contribution Investing Approach},
  author={Terry Grennon},
  journal={Mutual Funds},
A plan sponsor fiduciary is required to provide participants an investment menu that is "diversified." The DOL states the fiduciary “must act prudently and must diversify the plan's investments to minimize the risk of large losses." This requirement is consistent with the Uniform Prudent Investor Act which defines a diversified portfolio in which “gains in one investment will cancel out the losses in another.” The solution has been for the financial services industry to utilize Modern Portfolio… Expand