Integrated Actuarial and Investment Solutions
River and Mercantile Solutions is a leading institutional investment and actuarial advisor and fiduciary manager. We are dedicated to providing our clients with the understanding and tools to successfully meet the investment goals of their institution. River and Mercantile Solutions is a division of River and Mercantile Group PLC, which is publicly traded on the London Stock Exchange (Ticker: RIV).
Understanding the dynamics that drive interest rates is critical to understanding the level of current rates, why they have changed in the past, and how they might change in the future. This understanding allows investors and pension sponsors to make informed decisions on how to deploy their bond portfolios and what to expect from their long-term, interest rate-sensitive liabilities.
The month of April increased funded status gains since the beginning of the year. For most plans, gains since the beginning of the year should be up by about 2% to 3%. Equities added to 2019’s strong returns, with US equities leading the way in April.
A Powerful 3 Step Strategy: Increase Expected Return on Pension Assets at the Same (or Lower) Level of Funded Status Risk
It is possible for pension plan sponsors to increase expected returns on assets by 100 to 300 basis points (1-3%) per year for the same or lower funded status risk. The process and steps are spelled out below. Follow along and you’ll see how to increase expected returns, potentially cutting years off of the time required to reach full funding while also decreasing the pension expense reported in the financial statements.