Week ending September 28th, 2018 Investing is a big part of managing a defined benefit (DB) plan. DB plan sponsors must constantly look for ways to match assets with liabilities and improve their funded status. In addition, for those considering a pension risk transfer (PRT) strategy, funded status and asset allocation are important. Alternatives to traditional stock and bond investments have been considered, and useful. Some DB plans, especially larger ones, feel the need to incorporate activism in their investment selection. But, all investment considerations should begin with the realization of the duty to keep employees’ best interest in mind. This edition of PLANSPONSOR Weekend offers food for thought regarding DB plan investing.
Editor's choice Investing Trade War Effects on Retirement Plans What plan sponsors should consider as trade wars intensify.Read more > Investing Fixed-Income ETFs Used to Address Bond Market Issues “A majority of institutions around the world now consider bond ETFs as an alternative for fixed-income exposure and liquidity,” says Greenwich Associates Managing Director Andrew McCullum.Read more > Data and Research Institutional Investors Entering New Asset Classes, Paying Less in External Fees Cost reductions are evident across asset classes—not just in equity.Read more > Products MassMutual Paper Serves As Primer for PRT Considerations “While PRT can be a highly effective tactic for plan sponsors to reduce risk and shift liabilities off their books,” MassMutual says, “it’s possible to increase pension costs and risks if a PRT is not executed with long-term goals in mind.”Read more > Investing Plan Sponsors Need the Right Motivations for Choosing ESG Investments Political motivations and investor recommendations can result in choosing a low-performing investment for a retirement plan.Read more >
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