According to a press release, Pension Liability Allocation can also serve as a framework for plan sponsors to implement liability-driven investing. While asset allocation is an asset-side metric, Pension Liability Allocation considers the liability and surplus side of the pension equation, in addition to the asset allocation, according to the release.
Pension liability allocation can also be used in reviewing current or alternative investment policies, including interest rate swaps, derivative overlays and other liability-driven instruments.
For more information on Pension Liability Allocation and to download two white papers explaining the concept of the new metric, go to www.pi2resource.com .
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