We know that beyond ensuring you meet your fiduciary obligations to plan participants, plan sponsors have unique and often competing objectives. That’s why we develop customized portfolios that meet your needs today and can evolve as your needs change.
Head of Global Pension Practice
Our customized approach centers on our holistic pension risk management framework. Understanding your plan’s liability, risk tolerance, and plan status, we create portfolios that maximize returns in the current market environment for a given level of sponsor risk tolerance.
To do this, we can create tailored growth and liability hedging portfolios. Within the growth portfolio, we aim to implement active managers to add alpha while managing risks. The liability-hedging portfolio hedges against interest rate risk.
We can also help de-risk your plan as your funded status changes. Our glide path can use a number of risk reduction levers aimed at maximizing expected return at each declining level of targeted funded status volatility. It also reduces funded status drawdown tail risk. Traditional glide paths have a more regimented approach to de-risking that simply shifts assets out of the growth portfolio and into the liability hedge as funded status increases regardless of relative valuation levels.
Serving as either a 3(21) or 3(38) fiduciary, we can customize our services to what works best for you. Whether we have full discretion to implement portfolio changes on your behalf or partner with you to make portfolio decisions, we are fully focused on helping you meet your fiduciary obligations and achieve your required expected return objectives in a risk-controlled way.