This article continues the discussion of the DOL’s Performance Benchmark factor by reviewing the third example of the application of that factor. As background, the DOL’s proposed regulation on selecting investments, including alternative assets, 2026-06178.pdf, identifies six factors that should be considered in the process of selecting any investments for participant-directed plans, such as 401(k) plans and private sector 403(b) plans. The six factors are: Performance, Fees, Liquidity, Valuation, Performance Benchmark, and Complexity. The proposal describes each of those factors and provides 20 examples of their application. In earlier posts, I covered three of the factors—Performance, Fees and Complexity, and their examples. My last post, Alternative Assets (20), discussed the second example under the Performance Benchmark factor—about asset allocation investments with allocations to private funds.  Here is the DOL’s third and final example of the application of that factor—which illustrate the application of the factor to a target date fund that only holds publicly traded securities: (3) Example. Custom composite benchmark; Public securities— (i) Facts. The named fiduciary for a participant-directed individual account plan selects a target date fund as a designated investment alternative. The target date fund holds only publicly traded stocks and bonds. As part of the selection