Click the title of the white paper below to download a PDF file of the complete white paper.Journey Management, part II: Goal-focused, dynamic risk budgeting
Overview: Institutional investors, such as pension plans, take investment risk in an attempt to achieve their goals. Often these goals are tied to funding liabilities. However, recent volatility in typical US pension plans' funding ratios - and their present underfunding - suggests that traditional investment goals and policies have not provided a sufficiently successful framework. Investment policies and risk budgets historically have been infrequently revisited and tended to be viewed through as asset-only lens. This has begun to change. With the Pension Protection Act and the rise of mark-to-market accounting, plans are increasingly aligning their risk budgets (asset allocations) with their liabilities.
Overview: Evolving Perspectives on Pension Risk Management is a compendium of articles and view points written by Senior Actuary, Pierre Couture and a few of his colleagues, during the period of June 2007 through March 2011. Reading through this document, you will get a flavor for different opinions, thoughts and strategies across different and often times dislocated market environments. In our view, the goal for any plan sponsor is to manage pension portfolios in a way that is responsive and sensitive to changes in market conditions, a plan sponsorís financial strength and its risk tolerances. In working with our clients, we employ a consultative, custom and thoughtful approach to helping them manage pension risk over a planís lifecycle.