Passive management and the false premise of fiduciary relief
The increase in interest among DC plan sponsors for passive funds may be, in part, based on the false premise that fiduciary oversight requirements are nearly eliminated. Yet fiduciary responsibility may not be reduced to the extent sponsors believe when selecting passive funds to include in their DC line-up.
Perspectives on risk management: Ten conversations
Risk is a multi-dimensional subject. In this publication, Bob Collie interviews 10 respected investment professionals to explore their unique views on risk management.
Updated: The effect of the term premium in a rising rate environment
How best to position a portfolio in a rising rate environment is not as obvious as it might seem. This paper describes how the existence of a term premium may stack the odds against those who bet on rising interest rates.
LDI for DB plans with lump sum benefit payment options
While offering lump sums adds an extra layer of complexity to an LDI strategy, this should not dissuade sponsors from pursuing an LDI strategy for their plan. With a proper understanding and adequate approach, LDI can successfully reduce the interest rate risk in the plan and help the sponsor meet their objectives.
What's the right savings rate?
DC plan participants struggle with how much to save to achieve target replacement income (TRI) in retirement. The TRI 30 method offers plan sponsors a practical approach to guide participants toward appropriate individual savings rates.
How big is longevity risk?
Retirees drawing down assets in DC accounts must factor in both investment and longevity risk. At younger ages, investment risk is greater, but longevity risk becomes greater over time. This finding is relevant to the current debate on the provision of lifetime income options to DC plan retirees.
Perspectives on risk management
10 frank conversations on risk management with institutional investors, consultants, and investment professionals