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Article: Plan losses may spur shift to LDI strategy; Those that made switch couple of years ago reaping benefits during current market drop.(News)
- Article from:
- Pensions & Investments
- Article date:
- December 22, 2008
CopyrightCOPYRIGHT 2008 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Barry B. Burr
The drop in the capital markets might prompt pension funds to consider moving to liability-driven investing to mitigate against further losses and increased contributions.
With many U.S. corporate pension plans facing huge pension deficits because of the financial crisis, "the only (plans) that are doing materially different are those that move significantly to the so-called liability-driven-investing model,'' said Alan Glickstein, senior retirement consultant and actuary, Watson Wyatt & Co., Dallas. "These plans could even be overfunded at the end of the year.''
"Folks who chose to go LDI two or three years ago are ...