A Dynamic Asset Allocation Approach for Selecting a 401K QDIA
9 Pages Posted: 20 May 2015 Last revised: 14 Feb 2021
Date Written: May 15, 2014
The selection of the asset allocation and target date mutual funds that are used as qualified default investment alternative (QDIA) options for 401k participants are driven today by strategic asset allocation, risk and target retirement start dates. This paper details a dynamic asset allocation approach to be used for selecting a QDIA which uses forward looking return assumptions and the Sharpe Ratio for selection.
Keywords: Asset Allocation, Quantitative, hedge, dynamic asset allocation, QDIA, sharpe, qualified default investment alternative
JEL Classification: COO, CIO, CO, GOO, Gil
Suggested Citation: Suggested Citation