Institutional investors

Informed de-risking January 2011 Michael Thomas Chief Investment Officer Martin Jaugietis Senior Consultant James Gannon Manager, Investment Strategy and Consulting Many corporate pension plans have decided to de-risk their investment portfolios as their funded status improves. Whether you like it or not, any change to the fund's asset allocation involves a market-timing decision. With interest rates at historically low levels and equities rebounding in today's market, is there a way to strategically de-risk a portfolio without ignoring market conditions? This paper outlines: How the Pension Protection Act impacts contributions and time horizons Why real world challenges, such as interest rate lows and equity market extremes, impact de-risking, and Three practical steps for pension plan sponsors who want to de-risk their portfolios, while balancing timing factors. Download Research For more information about our research, please contact David or Gerry:     West Coast David Rothenberg Managing Director 866-926-5934 East Coast Gerry Lillis Director 866-459-4128 Please remember that all investments carry some level of risk, including the potential loss of principal invested. Although steps can be taken to help reduce risk it cannot be completely removed. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns. Russell Investment Group is a Washington, USA corporation, which operates through subsidiaries worldwide, including Russell Investments, and is a subsidiary of The Northwestern Mutual Life Insurance Company. Date of first use: January 2011 USI-12562			Printer friendly version of this page