Controlling volatility in their portfolios is the top priority for corporate pension plan executives in 2010, according to an SEI poll.
More than nine out of 10 pension plan sponsors (91%) said controlling volatility is a priority, and a third of respondents said it was a high priority.
Ninety percent of respondents said developing a strategy for improving their plan’s funded status was a priority, while 71% called it a top priority.
Asset-liability studies are expected to increase in 2010 over concerns about funded status and volatility, Jon Waite, director of investment management advice and chief actuary for SEI’s Institutional Group, said in an interview.
“They need to understand what the different levers are and what the impact of those levers are on their pensions and corporate finances,” he said.
Mr. Waite said that prior to the recession, corporate pension plans were better funded and plan sponsors were looking to balance risk and return. More recently, they are minimizing risk or maximizing return within reason.
The survey of executives from 54 pension plans with $250 million to $10 billion in assets was conducted in January.