The courses allow a greater number of
Primerica registered advisers to master the technical concepts needed to serve
IRA and business retirement-plan clients.
Primerica anticipates thousands of its advisers
will use the training program, which is accessible at Primerica Online.
“[To] achieve true diversification,
DC plan sponsors now need to move beyond the practice of simply diversifying
holdings within the traditional asset classes. By introducing ‘real assets’—
assets such as commodities, real estate and listed infrastructure—in their DC
investment menu, plan sponsors can better help participants achieve their
goals,” Mark Teborek, defined contribution analyst, and Josh Cohen, defined
contribution practice leader, wrote in the paper.
The paper says that in the past
several years, Russell has observed an increasing supply of
institutional-quality managers who invest in more marketable and liquid real assets
categories, giving DC investors access to real assets in ways previously unavailable.
The authors contend that stocks and bonds alone cannot be expected to always
produce a long-term real return.
The main principles of the authors’
argument for including real assets in DC plans are:
Real assets are typically under-represented in a
typical portfolio, and their addition broadens portfolio diversification because
of their modest correlation to a typical asset class;
Real assets increase the potential to achieve a
consistent real return above the rate of inflation over time; and
Real assets provide a way to enhance potential
long-term returns by taking advantage of global trends.
“Real assets for the defined
contribution menu” can be downloaded here.