April 29, 2026
How alternative investments are innovating DC retirement plans
Discover how private asset alternative investments are innovating 401(k)s.
A great partner considers the alternatives
Explore how private asset alternatives, when integrated into defined contribution target-date funds and managed accounts, can help improve retirement outcomes and reduce longevity risk.
Explore market opportunities
A nearly 50% decline in public companies is driving more high-growth investment opportunities to private markets.1
Access new sources of return
U.S. private equity has outperformed U.S. public equity, among other asset classes, over multiple investment horizons.2
Meet growing demand
More than 70% of investors aged 21 to 43 believe traditional assets alone can't deliver the returns they seek, increasing interest in alternative investments.3
How can private assets help ease longevity risk?
As DC plans evolve to meet longevity challenges, private asset alternatives, when added to target-date funds, can offer a powerful way to enhance diversification, improve risk-adjusted returns, and strengthen long-term retirement readiness.
Prepare to live longer
Americans age 100+ are expected to quadruple over the next 30 years4—driving demand for more resilient portfolios tailored to longer lifespans.
Reduce shortfall risk
Today's workers are at risk of outliving their savings. Half are retiring sooner than planned,5 and only 12% have set aside enough to last 10 years or more in retirement.6
Help savings go further
Half of workers report they’re behind on their retirement savings.5 To help make those savings last longer, we need to find new sources of long-term growth and income.
Insight from our thought leaders
Discover how private assets are reshaping DC plans
Private assets viewpoints
February 17, 2026
What are alternative investments?
Workplace savings plans aren’t just about stocks, bonds, and cash anymore. Alternative investments are stepping into the mix to enhance diversification and potential outcomes. Learn what alternative assets are and how they compare to traditional assets.
How to approach alternatives and private credit
John Bryson, head of investment consulting and host of the Portfolio Intelligence podcast, joins David Vincent, CFA, CAIA, co-head of alternatives intermediary distribution, to discuss how to navigate the private asset alternatives market, evolving trends, and emerging investment strategies in the DC retirement plan industry.
Understanding private assets
Private asset alternatives—private equity, private credit, and real assets—are financial assets that fall outside of traditional publicly traded stocks, bonds, and cash. Since they're less correlated with public markets, private assets may reduce portfolio volatility over time when added to a target-date fund or managed account.
Learn more
Debunking common myths about private asset alternatives
Myth | Fact |
|---|---|
Private assets are too risky and aren't appropriate for DC plans. | Private assets have unique risks and characteristics, but they aren't inherently riskier than public-market investments. As with any investment, risks vary and should be carefully weighed against potential rewards and costs before investing. |
Private assets limit DC plans' ability to meet daily liquidity and benefit needs. | While private assets are generally less liquid, professionally managed target-date funds and managed accounts can include modest allocations to them while remaining liquid and benefit-responsive. At the portfolio level, most assets are allocated to publicly traded securities and cash-like investments that can be bought and sold daily, supporting daily participant transactions and benefit payments. |
High-profile private assets managers automatically introduce outsized risks. | Fiduciary appropriateness depends on a prudent selection process, not an asset manager's brand. A 2026 Department of Labor ruling provided a clear, neutral framework for fiduciaries to follow using a rigorous evaluation process for selecting private assets for DC plans. |
Fiduciary and litigation risks are too high, so it's best to avoid private assets altogether. | ERISA does not prohibit private assets in DC plans, and avoiding private assets does not eliminate fiduciary risk. When properly evaluated and monitored, private assets can be considered alongside other plan investments. |
Private assets compared to traditional assets
Private assets | Traditional assets | |
|---|---|---|
Allowed in defined contribution plans | Yes | Yes |
Correlation to public markets performance | Low | High |
Diversification benefits | When added to a mix of traditional, publicly traded assets can help enhance diversification and smooth out portfolio volatility over time | A mix of publicly traded stocks, bonds, and cash is used to help offset losses from any single asset class |
Investment horizon | Medium to long-term | Short to long-term |
Return potential | Varies, generally income earned from rent, interest, or contractual revenues, repayment of principal at maturity, gains from capital appreciation, and an illiquidity premium, or extra return expected for making a longer-term investment commitment with less liquidity | Varies, generally gains from capital appreciation, income from dividends or interest, and repayment of principal at maturity |
Liquidity | Less liquid due to deposit and redemption requirements with infrequent pricing | Highly liquid with daily pricing |
1 "Fewer companies are going public. Are regulations driving the drop?," Columbia Business School, 8/13/25. 2 "Private equity delivers stronger long-term returns than any other asset class," American Investment Council, 12/8/25. 3 "How younger investors are driving a shift toward alternative investments," Forbes Finance Council, 7/1/25. 4 "U.S. centenarian population is projected to quadruple over the next 30 years," Pew Research, 1/9/24. 5 Manulife John Hancock Retirement commissioned Edelman Public Relations Worldwide Canada to conduct the 2025 financial resilience and longevity survey. Manulife John Hancock Retirement and Edelman Public Relations Worldwide Canada are not affiliated, and neither is responsible for the liabilities of the other. 6 PensionBee’s 2026 Q2 Happy Retirement Report, 5/5/26.
Important disclosures
Important disclosures
Important information
You should carefully consider the objectives, risks, charges, and expenses before investing. The prospectus or fund offering document/trust document contains this and other important information about the investment option and investment company. Please read the prospectus or fund offering document/trust document carefully before you invest or send money. Prospectus or fund offering document/trust document may only be available in English.
There is no guarantee that any investment strategy will achieve its objectives.
Liquid alternatives: Alternative investing involves substantial risk and there is an opportunity for significant losses. The products may not be suitable for all investors. Compared with a traditional mutual fund, an alternative fund typically holds more nontraditional investments and employs more complex trading strategies. Investors considering alternative mutual funds should be aware of their unique characteristics and risks. Alternative investments may have limited performance information, low liquidity, and unproven strategies with unknown risks.
Illiquid alternatives: Alternative investments by their nature involve a substantial degree of risk, including the risk of total loss of an investor's capital. Further, alternative investments are subject to less regulation than other types of pooled investment vehicles, may be illiquid, and cannot assume that investments in the asset classes identified will be profitable or that decisions we make in the future will be profitable. Alternative investments may also involve significant use of leverage, making them substantially riskier than other investments.
This communication does not include unbiased investment advice from Manulife John Hancock. In the event a plan fiduciary you advise selects Manulife John Hancock Retirement as a recordkeeper, Manulife John Hancock and our sales professionals and other employees who assist in bringing and retaining retirement plan business to Manulife John Hancock Retirement will receive compensation.
This material is for general information only and is believed to be accurate and reliable as of the posting date, but may be subject to change. It is not intended to provide investment, tax, plan design, or legal advice. Please consult your own independent advisor as to any investment, tax, or legal statements made.
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