January 2, 2015

January 2015, "Dynamic Asset Allocation as a Pension Plan 'De-Risking' Strategy: The Devil Is in the Details"

Abstract

Pension experts from Sibson Consulting and investment experts from Segal Rogerscasey collaborated on the latest issue of Spotlight, which discusses dynamic asset allocation as a pension "de-risking" strategy and is intended for financial professionals. As a plan's funded status improves, dynamic asset allocation gradually reduces the plan's allocation of "return-seeking assets" and increases the allocation to "liability-hedging" assets.

This Spotlight outlines a number of elements to a dynamic asset allocation that require thoughtful consideration on the part of the plan sponsor and notes some of the decision points the sponsor will face in implementing a dynamic-asset-allocation strategy.