Seven Key Questions Plan Sponsors Are Asking

Is your plan’s return-seeking portfolio built for what comes next?

Many corporate pensions limit their return-seeking assets to traditional equities. But what happens when the market environment is unfavorable for this asset class? We think plans need to examine this vulnerability and consider constructing return-seeking portfolios with three building blocks that may help pursue funded-ratio growth while mitigating funded-ratio drawdowns in more challenging environments.

Rethinking De-Risking

Traditional approaches to de-risking DB plans haven’t yielded the desired results

Current Trends in Portfolio Transition Management

What are some of the key drivers in servicing institutional investor clients in transitioning their portfolios? Asset flows. Dispersion. Risk mitigation. Technological advances. Here are the trends that William Cobbett, Head of Transition Management Americas, is seeing from his capital markets desk at Citi in New York, and how they may factor into an asset owner's choice of transition manager.

Weatherproofing a plan’s return-seeking assets

For corporate DB plans, return-seeking assets are often synonymous with traditional equities. That’s fine if market conditions are just right, but it leaves plans vulnerable in many environments. We think the solution is to diversify return-seeking allocations with assets that may perform well in a variety of conditions.

Opportunities in Emerging Market Local Currency Bonds

EMs currently account for more than half of the world’s GDP and around two-thirds of GDP growth—that economic share is only expected to rise as EMs are projected to grow faster than developed markets (DMs) in upcoming years.