Absence of ‘Meaningful’ Benchmarks Bedevils 401(k) Private-Markets Investing

Rachel Faye Smith spoke with the Wall Street Journal about the challenges retirement plan fiduciaries face under the U.S. Department of Labor’s proposed rule for including private-market investments in 401(k) plans. She explained that the absence of widely accepted performance benchmarks for private assets creates legal and fiduciary risks for plan sponsors seeking to rely on the rule’s safe harbor. As Rachel noted, “Until the industry settles, it’s going to be risky for retirement plan investment committees to pick one provider versus another.” Her comments underscore the need for greater standardization and transparency before broader adoption can occur.

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