Protecting funded status, addressing inflation risk, adding value, and more are among suggestions from consultants and asset managers.
It has never been more expensive to fund a stream of guaranteed retirement income, nor have individuals been so in need of guarantees generated outside of large collective pensions.
Adjustments made to the corporate tax rate, repatriation of offshore cash and interest rate deductibility all are likely to have immediate effects on the credit markets—and by extension, on institutional investors’ fixed-income portfolios.
“As they ready their portfolios for the end of the 'Goldilocks' market, U.S. institutions are integrating ETFs more deeply into their portfolio management and investment strategies,” says Andrew McCollum, Greenwich Associates Managing Director.
According to the researchers, sector diversification and yield curve positioning can help investors during rising-rate periods.