Consultants

Institutional investors are taking a more differentiated and strategic approach to private credit allocations – and they have a broad menu of sub-sectors and approaches to select from that each can help meet different risk-return objectives. Specialized segments including asset-based private credit and subscription li e lending are also at the forefront for investors. For all, prudent execution and experience in navigating different market environments is paramount.

Collective investment trusts offer DC plan sponsors several advantages over traditional mutual funds, which has led an overwhelming majority of plans including the CIT structure in their investment options. CITs and mutual funds differ in key features, implementation and use cases, making them a viable option for most DC plan menus.

With corporate pension plans enjoying high funded status and even surpluses, their derisking paths have widened significantly. Some are leveraging annuity buy-ins strategically to prepare for an eventual buy-out or to manage market volatility. Others are pursuing more calibrated liability-driven investing strategies that support their asset gains and can even grow their surpluses. The lead sponsors of P&I’s Pension Derisking conference share current insights for pension plans.

An active, bottom-up approach to opportunistic high-yield can deliver returns without increasing risk for long-term investors looking to diversify across fixed income. A specialist portfolio manager in U.S. opportunistic high yield explains the market inefficiencies that underpin the approach, its fundamental investment process, and the comparative advantages that the asset class presents.

Pooled employer plans are gaining in popularity as a robust retirement plan solution for employers that are attracted to their operational, fiduciary, plan design, cost, and related benefits. Yet misconceptions by plan sponsors persist around relevance, control, flexibility and the fiduciary duties between the PEP provider and the participating employers. PEPs can be implemented by all stripes and sizes of employers, and it’s also important to understand their comparative nuances versus single-employer plans and other types of group plans.

How are investors positioning their fixed-income allocations for a higher-for-longer rate scenario? Or, for that matter, for an unexpected rate surprise? They are focused on shorter duration and high-quality assets, with several segments offering attractive returns including investment grade credits. Investors are also seeking highly customized solutions that can meet their precise objectives of diversification, income or liability-matching.

Corporate pension plans are continuing to pursue PRT transactions for a host of reasons, with more insurers stepping up to meet the demand and deliver on providing retirement security to plan participants. This updated resource explains what’s behind the current developments and offers practical advice to plan sponsors on preparation for a PRT, evaluating an insurance partner, and implementation steps. It also profiles the sponsor’s investment capabilities, capital sourcing strategies and solutions.