Liability-driven investing is growing more important as pension plans broadly move into a phase where they are not growing but instead need to be focused on meeting their benefit obligations.
Cerulli also sees opportunities for advisers in the 403(b), defined benefit (DB), and financial wellness markets.
MassMutual has issued a white paper outlining all considerations for defined benefit plan sponsors considering a pension risk transfer.
The company will offer a lump-sum distribution window to certain participants and transfer certain retiree assets to a group annuity.
The financial crisis resulted in severe declines in the funded status of most U.S. corporate pension funds resulting in almost universal pension deficits; companies’ various responses to the challenge offer some food for thought.
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.
This enables corporations to expense their contributions at a higher tax rate, according to Cerulli.
A new Cerulli Associates analysis shows institutional custom solutions assets stood at $1.7 trillion at year-end 2016, and assets are projected to grow 10.4% to 1.9 trillion by 2021.
Cerulli posits that LDI, when implemented effectively, can be “the ultimate custom solution.”