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Double Digit Equity Returns 2019 YTD — how do you protect your equity position for the rest of the year?

With both international and US equity markets up approximately 15% year-to-date reversing most of the 4th quarter 2018 correction, many plan sponsors are asking themselves “should we consider any changes to protect the equity gains that we have…

Replicating Private Equity

Private Equity is illiquid and challenging to benchmark. Many investors use “S&P 500 +3%” in order to compare performance in the absence of an observable, investable asset. This paper describes a methodology for creating a private equity proxy or replication strategy using derivatives.

Next Steps After an Annuity Purchase

You’ve just completed an annuity purchase for your pension plan; so what’s next for the plan? Now is a good time to build a strategy for your plan which will differ depending on your funded status.

Pension Investing – Next Generation of Glide Paths

Pension plan sponsors, especially those with frozen pension plans, have spent significant time deciding on the most appropriate balance between growth (return seeking/equities) and hedging (liability matching/long-term bonds) assets to meet their objectives. For most, the ideal goal is to fully fund the pension plan through a balance of investment performance, cash contributions and a rising interest rate environment while not subjecting themselves to higher than desired funded status risk.

Does Your Company Need To Strengthen Its Employer-Provided Retirement Program? Why? How? What Could Happen If You Don’t?

So, you have a solid 401(k) savings plan. It’s competitive in your industry. It’s not preventing you from attracting new recruits. But, does the plan help you retain key employees or, maybe more importantly, encourage employees to retire in a timely...

Pension De-Risking – The Next Evolution in Reducing Funded Status Risk

There has been an evolution of pension plan de-risking over the years, giving us 3 different versions. Many plan sponsors have avoided moving more quickly to de-risk using strategies 1-3 because of the negative impact that each of these can have on a sponsor’s reported profits as well as expected cash contributions to close a deficit. We are now poised for de-risking version 4.0, in which plan sponsors will utilize modern risk management tools to significantly reduce funded status volatility while maintaining expected returns.

News

Next Steps After an Annuity Purchase

Next Steps After an Annuity Purchase

You’ve just completed an annuity purchase for your pension plan; so what’s next for the plan? Now is a good time to build a strategy for your plan which will differ depending on your funded status.

read more
Retirement Update – December 2018

Retirement Update – December 2018

Key Takeaways: Discount rates were flat for the month, but still up materially since the beginning of the year. Investment returns were mostly up, however an up and down month for equities. Funded status should have remained neutral to slightly positive...

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Mortality: Back to Where We Started

Mortality: Back to Where We Started

Second only to the discount rate, the mortality assumption is the biggest driver of the pension liability on plans sponsors’ balance sheets. New mortality tables issued in 2014…

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Equity Protection – is now the right time?

Equity Protection – is now the right time?

Recent bouts of volatility have made headlines and questions are being asked of one of the longest equity bull markets in history. However, strategies to protect against declines in the equity market have been steadily getting cheaper and are now at multi year lows…

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Pension Investing – Next Generation of Glide Paths

Pension Investing – Next Generation of Glide Paths

Pension plan sponsors, especially those with frozen pension plans, have spent significant time deciding on the most appropriate balance between growth (return seeking/equities) and hedging (liability matching/long-term bonds) assets to meet their objectives. For most, the ideal goal is to fully fund the pension plan through a balance of investment performance, cash contributions and a rising interest rate environment while not subjecting themselves to higher than desired funded status risk.

read more
Retirement Update – November 2018

Retirement Update – November 2018

October saw some of the worst equity market performance in recent years, although there has been some recovery into November. The negative impact on funded status due to equities would have been offset to a degree by rising interest rates throughout the month.

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Pension Plan Annuity Purchase Update – Q2 2018

Pension Plan Annuity Purchase Update – Q2 2018

Market Activity Source: LIMRA Secure Retirement Institute Through the first half of 2018, pension buy-out sales are once again on a record-breaking pace. Q2 sales eclipsed $8.2 billion which brings year to date sales to $9.6 billion. If Q3 and Q4 sales...

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