Combining emerging markets equity and fixed income would provide a more blended and balanced approach than allocating only to emerging markets equities, the report said. The more balanced approach has the potential to reduce portfolio volatility and diversify country and currency risks than could be accomplished with only emerging markets equities, according to the report.BNY Mellon sees liquid alternatives as a way to provide DC participants with strategies that have a low correlation to equities market. "There is a wide range of liquid alternative strategies," said Capone. "So, we are using three hedge fund indices as proxies for this asset class."
Adding Real Assets, Emerging Markets Securities, And Liquid Alternatives Could Improve Returns Of Direct Contribution Retirement Plans, BNY Mellon Says
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