When Good Tools Are Used Inappropriately, Bad Things Happen

When Good Tools Are Used Inappropriately, Bad Things Happen

When Good Tools Are Used Inappropriately, Bad Things Happen No, all derivatives are NOT the same Derivatives are a tool, nothing more, nothing less.  Just like any tool, if used inappropriately, they can cause more harm than good.  Derivatives, such as options on...
Pension Plan Glidepath: An Investment Opportunity

Pension Plan Glidepath: An Investment Opportunity

Pension Plan Glidepath: An Investment Opportunity Many frozen pension plan sponsors have established “glidepaths” to manage the allocation of assets between growth assets (typically equity) and hedging assets (typically fixed income). These glidepaths are designed to...
A case study in liquidity – because when it rains, it pours!

A case study in liquidity – because when it rains, it pours!

A case study in liquidity – because when it rains, it pours! Executive SummaryLiquidity management is of increasing importance on the agendas of trustees and plan committee members, with many plans potentially now paying out more cash out than is coming in and with...
Pension Investing – Why Equity Derivatives Now?

Pension Investing – Why Equity Derivatives Now?

Pension Investing – Why Equity Derivatives Now? Equity returns of 15% or higher would usually be cause for celebration among corporate pension plan investors. However, despite these strong returns, many plan sponsors have seen a decline in their funded ratios...
De-risking – Is Less Equity Better?

De-risking – Is Less Equity Better?

De-risking – Is Less Equity Better? Is holding less equity as a plan gets closer to its funding goal the right thing to do? We decided to dig into this question to see what the potential outcomes could be for plan sponsors and see how what we call structured...