Defined contribution (DC) plans have come under scrutiny for their vulnerability to market volatility and sustained market downturns. As a result, fund trustees, plan sponsors, and administrators have begun to question traditional asset allocation strategies. But a number of alternative strategies have emerged that can readily address concerns like the protection of fund member assets in the long term and the risk of increasing life expectancies.

This research report examines some of these strategies, including target-date funds, target-volatility funds, continuous portfolio protection insurance, bond plus call strategies, option budgets, and dynamic replication.