The funded status of corporate DB pension plans has experienced unprecedented volatility in the 21st century. This article examines the sources of funded status volatility seen over the past two decades and discusses how plan sponsors of DB pension plans have adapted. It argues it is important to exercise care in the strategy that is chosen and in the timing of implementation.
Some trends have the potential to pack the impact of a force of nature in markets in 2019. Mercer takes a look at threats and opportunities from choppy waters of the late cycle, headwinds in market participation, geopolitical tremors, and the unstoppable force of sustainability.
Low-volatility equity approaches have delivered for 10 years. As their popularity rises, Mercer looks at potential uses, causes for concern, and whether it's time to move in another direction.
There is growing recognition that globalisation has a downside. But whether they are mitigated, or continue on the current course, investors should be looking to safeguard their portfolios.
A reduced and reworked equities allocation, a buildup of income-producing assets and a commitment to readily available cash are all part of NMSIC CIO Robert Smith’s protection plan.
The most important thing investors can do given the investment environment is to balance their beta to account for the wide range of potential outcomes, says Greg Jensen, Bridgewater co-CIO.
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