CHICAGO--(BUSINESS WIRE)--Northern Trust announced today that Serge Boccassini was named to the board of directors of the Defined Contribution Alternatives Association. The Association is a 501(c) non-profit organization created to educate plan sponsors and other stakeholders on the benefits of including alternative investments within a defined contribution framework to enhance participant outcomes.
Traditional pensions, endowments, and foundations have been effectively allocating portions of their portfolios to non-traditional investments for many years. Alternative investments such as emerging market debt, infrastructure, private equity and hedge funds have been used to enhance performance, minimize volatility, and mitigate different types of risks. The long standing low-interest rate environment, volatility in the markets, and the large uptake in target-date fund utilization, have prompted plan sponsors to explore investment strategies carrying different risk/return and correlation characteristics. Some alternative investments, such as hedge fund-like liquid alternative funds, are more adaptable to the daily liquidity environment available to US defined contribution plans.
However, with the substantial growth in age-based allocation models, there is significant interest and discussion around illiquid alternatives, like private equity and infrastructure. The Association was created to help bridge the information gap on how plan sponsors can effectively and responsibly include alternatives within a defined contribution plan framework.
“Northern Trust has long been active in the retirement space, and we believe collaboration with industry organizations is essential to understanding key issues and working effectively on behalf of our clients,” said Pete Cherecwich, Americas head of Corporate & Institutional Services at Northern Trust. “This appointment is an important part of our strategy to help plan sponsors and participants benefit from the inclusion of alternative investments.”
“Our goal is to help plan sponsors effectively and responsibly include alternative investments within a defined contribution plan framework. Serge Boccassini's passion, knowledge of global DC trends, and history of working with some of the largest plan sponsors will help support these endeavors,” said Jonathan Epstein, president and founder of the Defined Contribution Alternatives Association, commonly referred to as DCALTA.
Other firms to be represented on the Defined Contribution Alternatives Association board include: Adams St. Partners, Cambridge Associates, TIAA Global Asset Management, FTSE Russell, NATIXIS, Neuberger Berman, Pantheon, and Star Mountain Capital. Additional information regarding DCALTA’s mission and the board members can be found at www.dcalta.org. Serge Boccassini’s appointment will be effective as of November 2, 2016.
The Association’s reach includes stakeholders from the defined contribution community, hedge funds, private equity firms, commodity trading advisors, and other supporting entities. Members are dedicated to seeking solutions to help overcome market bias and operational impediments impacting the use of alternative investments within defined contribution plans.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, and affluent families and individuals. Founded in Chicago in 1889, Northern Trust has offices in the United States in 19 states and Washington, D.C., and 22 international locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of June 30, 2016, Northern Trust had assets under custody of US$6.4 trillion, and assets under management of US$906 billion. For more than 125 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit northerntrust.com or follow us on Twitter @NorthernTrust.
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