Institutional investors and pension plan consultants need to get the most out of their investment dollars. How do investors meet their investment yield requirements and future obligations?
Below are eight strategies asset managers can employ to meet pension plan needs for yield-enhanced income. The historical yield differential between the income producing asset category and its benchmark is highlighted in basis points (bps).
Each plan’s optimal asset allocation and volatility targets should be based on client risk preference, funded status, interest rate sensitivity, and overall organizational objectives.