BlackRock Says Index Funds Alone Aren’t Enough for US Retirees

BlackRock Inc. called for more active management and the inclusion of private assets in 401(k)s, contending index investing alone is no longer sufficient to manage risk and fund retirements that can now stretch for decades.

“There needs to be an evolution away from this being indexed only,” Nick Nefouse, global head of retirement solutions at the firm, said in a phone interview, adding that increased volatility and concentration in stock market indexes necessitates more active management. “The markets are evolving to a point where there needs to be more of an oversight.”

The world’s largest asset manager published research ...