The Markets February 13, 2012

Pension Risk Transfer Index Falls 0.30% in January

The Dietrich Pension Risk Transfer Index was nearly unchanged from its prior month’s level of 86.65 and currently sits at 86.35 as of February 1, 2012. 
Reported by

According to Dietrich & Associates, the net unchanged position was driven by modestly lower annuity discount rates, which were offset by modestly higher pension funding levels. The current annuity discount rate proxy embedded within the index is at 3.08%.

“With the Federal Reserve intent on trying to keep interest rates low until at least 2014, the short-term outlook for pension liabilities being reduced by rising interest rates seems unlikely,” said Jay Dinunzio, senior consultant at Dietrich & Associates. “Asset allocation will likely be a key focus for many pension sponsors as they seek to opportunistically increase fixed income exposure. The institutional insurance marketplace has a variety of contract structures available, which may allow risk focused small and mid-sized plan sponsors to access a customized LDI solution where the fixed income investment is tailored to the specific plan liability cash flows.”

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The Dietrich Pension Risk Transfer Index can be found at  https://www.dietrichassociates.com.

Deals & People February 13, 2012

Prudential Expands DC Business

Prudential Investments expanded its defined contribution business by establishing a new Southwest sales division.
Reported by

The division will be led by account manager Stacey Harper, who will be supported by retirement specialist Jeffrey L. Meltzer. Both of these are new positions.

Harper was formerly a national accounts manager at Prudential Investment Management, and Meltzer was most recently an internal wholesaler for Prudential Investments’ sales team. The Investment Only Defined Contribution (IODC) unit of Prudential Investments supports advisers who help plan sponsors build and maintain defined contribution plans. Prudential Investments is the mutual fund and wealth management business of Prudential Financial Inc.

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Prudential also announced that Tony Fiore was named director of institutional IODC sales. Fiore will be responsible for coaching the IODC sales team, as well as developing consultant and registered investment adviser (RIA) relationships nationally. Previously, Fiore was the Eastern Region account manager.

Ryan T. Quinn, who recently joined Prudential Investments from the Hartford Retirement Plans Group, has been appointed to Fiore’s previous position. Both will report to Michael Rosenberg, senior vice president of Prudential Investments and head of the IODC channel.

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