Improving Expected Returns: Corporate Defined Benefit Plans

Improving Expected Returns: Corporate Defined Benefit Plans

Many corporate defined benefit pension plans utilize interest rate derivatives and/or Treasury STRIPS to manage interest rate risk. They also typically have large allocations to active fixed income managers as part of their liability-matching bond portfolios....
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?

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 equity could factor into the answer. (For...