Serving corporate defined benefit pension plans is an essential part of our character. DB plans were our first clients, and they continue to comprise the majority of our client base.
We know every DB plan and plan sponsor is different. Our primary aim is to generate significant performance improvements for our clients but we recognize the need to tailor our services to each one – to their funding position, the pro le of their liabilities and membership, the nature of their business and the strength of their governance.
We take all these factors into account when working with a new client to establish its target investment return and tolerance for risk. We can then assess the fitness of the plan’s current asset allocation, and the appropriateness of making changes.
Many plans aim to eliminate or minimize their risks, either through termination or by investing in assets that match liabilities using what we refer to as a “hibernation” strategy. We help plan sponsors design de-risking strategies to meet these objectives over time. We believe any such de-risking plans should be managed dynamically as, in certain circumstances, it can make sense to accelerate de-risking, decelerate it or, indeed, even to re-risk.