Many pension plans remain underfunded, but improving markets have helped to narrow the gaps. Plan managers can now afford to rein in the risk in their portfolios and are taking a more cautious approach.
But will too much focus on risk mitigation lead to underperformance? Or will plan managers strike the balance that gives them the returns they need without putting too much on the table? Read on to find out what other plans are doing, and learn more about investing strategies that could work for you.
Top 100 Pension Funds Report: Risking it all
2010 marked another good year for pension investments—but after two major economic crises in the first decade of the 21st century, many plan sponsors are questioning whether the risk is greater than the reward. Read more.
Video: Rethinking asset allocation
John Power, senior vice-president, U.S. equities, with Pyramis Global Advisors, says that investors need to seriously rethink traditional asset allocations. Watch this video.
Profile: TTC pension fund considers new direction
Consistency has helped the TTC Pension Fund Society through recent market challenges, but it’s looking to different asset classes for a possible new direction. Read more.
Profile: Queen’s is cautious with pension risk
There’s little room for luxury in higher education, and even less room for the luxury of major risk in the Queen’s University Pension Plan, where caution is the watchword of the day. Read more.
Understanding LDI
Lingering economic uncertainty and a workforce that’s moving closer to collecting pensions have led many plan sponsors to seek new ways to mitigate risk in their plans. Liability driven investing (LDI) is one de-risking strategy that’s increasingly coming into focus. Read more.
Managing risk in a small pension plan
For small-size employers that want to continue offering a DB pension plan, there are manageable strategies for mitigating risk. Read more.
Alternatives becoming the new core
Alternative investments will increasingly become part of institutional and high net worth portfolios. In fact, they are likely to blend right in to the traditional portfolio, supplanting traditional notions of what the portfolio core should look like. Read more.