River and Mercantile Derivatives is a provider of structured equity and liability driven investment (“LDI”) to institutional investors. We offer a bespoke approach that is affordable and transparent.
River and Mercantile Derivatives is part of River and Mercantile Group PLC, which is publicly traded on the London Stock Exchange (Ticker: RIV).
News & Articles
Structured Equity can Increase Funded Status – A Successful Investment Strategy for the Past, Present, and Future
Challenging investment markets in 2020 have undone years of improvement in the funding levels of corporate defined benefit pension plans. The funding level of a typical plan, as noted in a recent study by Mercer, fell from 88% at the end of 2019 to 80% at the end of April . However, pension plan sponsors do not need to accept that significant funding level declines are the inevitable consequence of tough markets. It is possible to do much better.
We find ourselves in difficult times. The global effects of COVID-19 have wreaked havoc on investment markets, on daily life and on institutional investment pools such as pension funds and endowments. Treasury yields have plummeted, credit spreads have widened, and major equity indices have fallen to levels not seen since 2016. In times like these, many investors are wondering how they can possibly find their way out…
In 2019 plan sponsors witnessed a familiar, albeit more extreme, combination of returns that has also been the theme of the entire previous decade. Equities rallied, long term interest rates fell, and funding levels didn’t increase to levels that...