Pension Investment De-Risking Primer
Sterling Price, managing consultant at Findley, discusses how LDI and a dynamic investment policy help to de-risk pension plan assets.
Tag: LDI
Weyerhaeuser Takes Steps to Reduce Pension Liabilities
The company is offering a lump-sum window, transferring some liabilities to a group annuity, making a contribution to its pension plan and transitioning to a liability-matching investment allocation.
Your DB Funded Status Has Improved? Now What?
Corporate DB plans have experience funded status improvement, and LDI strategies help plan sponsors preserve this; however, investment committees are looking for new asset classes that can provide greater returns at a reasonable level of risk.
Post-Crisis Pension Portfolios Include More Fixed Income, LDI Strategies
Equity prices have strongly recovered since the Great Recession, bringing some benefit to corporate pension funded status, but pension plan sponsors have still faced periods of unprecedented volatility, a prolonged slowdown in global growth, and historically low interest rates.
DB Plans Accelerating Contributions Due to Tax Reform
This enables corporations to expense their contributions at a higher tax rate, according to Cerulli.
Cerulli Report Maps LDI and OCIO Opportunities
Alexi Maravel, director of Cerulli’s institutional practice, observes that the LDI topic is “probably the most competitive pricing environment among the different types of institutional custom solutions available today.”
More DB Plans Using LDI Strategies
Eighty-one percent of pension plan professionals say funded status volatility is their top motivating factor for pursuing an LDI strategy.
Retirement Industry People Moves
T. Rowe Price Names Senior DC Specialist; Vanguard Rotates Portfolio Managers; American Century Preps for Major ETF Business Launch; and more.
For Some DB Plan Types IDL, Not LDI, Is the Answer
John Lowell, with October Three, says for two types of DB plans, investment-driven liabilities (IDL) is almost risk free for plan sponsors and provides more meaningful benefits to participants.
What DB Plan Sponsors Need to Know
Six essential DB strategies
LDI Still a Viable DB Plan Derisking Strategy
Despite market volatility and a continued low interest rate environment, DB plan sponsors can still establish an effective LDI strategy to derisk their plans.
Small Pension Plan Sponsors Fully Embrace PRT Transactions
Nearly 85% of pension plans paying PBGC premiums have less than 1,000 participants—so it only makes sense that small plans make up a significant proportion of the ERISA industry’s annual risk transfer business.
Aligning Stakeholder Interests in Pension Buyouts
A lot of parties are involved in even a modestly sized pension risk transfer deal; aligning their interests, timelines and incentives for success is no small task.
Now Is Not the Time for De-Risking DBs
Market volatility and funding relief allowing lower required contributions have impacted the value of LDI and other pension plan de-risking strategies, SEI says.
DB Pension Buyouts Reached a Milestone in Q1
Steady as a drumbeat, LIMRA Secure Retirement Institute data shows pension buyouts topped $1 billion for the fourth consecutive quarter.
DB Plan Sponsors Focusing Attention on Funding
The issue of funding pension plans has risen to the attention of companies’ leadership, a survey shows.
Investment Product and Service Launches for the Week
Acuitas
establishes new long/short equity option designed for retirement plans, and LGIMA touts
new liability-based funds for small and mid-sized pensions.
Investment Product Launches for the Week
NEPC improves glide path customization abilities, and MassMutual teams with Envestnet on managed accounts.
Bond Ladders a Prudent Approach to Fixed Income
They perform well in all interest rate environments.
Manulife Asset Management Adopts PFaroe
Manulife says the adoption of PFaroe risk analytics will complement its global liability-driven investing offering.