Major target-date retirement fund providers are introducing alternative asset classes including private credit, real estate investment trusts, and infrastructure into their fund portfolios. The additions aim to improve diversification and enhance long-term returns for retirement savers.
Vanguard, Fidelity, and T. Rowe Price have all announced updated glide paths that incorporate 5-15% allocations to alternatives, depending on the target retirement date. The shift reflects growing institutional consensus that traditional stock-bond portfolios may not adequately address inflation risk and return requirements.
