Last year was a great year for pension funds, no doubt about it. But is trouble looming?
First, there’s the tapering of the Fed’s bond buying program.
Still, they are likely better off than in the past.
“[Pension fund sponsors] have taken action so that we don’t look like we did” before previous bubbles, so “they [probably] won’t be hurt by any equity disruption, said Charles McKenzie, head of institutional solutions for Pyramis Global Advisors, a division of Fidelity investments company based in Smithfield, R.I.
Risk is at the forefront of concerns listed by midsize pension plan sponsors, according to a Pyramis survey.
The poll of 166 midsize U.S. corporations conducted in September and October found the top three concerns were risk management (31 percent), low return environment (29 percent) and volatility (24 percent).