Managing for a total outcome rather than focusing on the returns of individual strategies or asset classes is the key to solving the risk/reward dilemma faced by many underfunded pension funds, according to State Street Global Advisors.
In a recent paper, "Managing Pension Risk: Confront Your Risk/Reward Dilemma," the company offered insights for pension managers and investment committees and boards on how to manage pension risk.
State Street notes that investors' ability to recognize and manage risk has been tested in the face of market volatility and a shifting regulatory landscape. New accounting rules that have emphasized greater transparency, the Pension Protection Act of 2006, which put more emphasis on the asset/liability mismatch, and increased capital market risk have caused pension managers to struggle with remaining properly funded, match assets to liabilities, and manage contribution increases.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
- Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
- Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
