Posts by Tom Cassara
Alternatives to traditional pension de-risking
Article October 8, 2021 Alternatives to traditional pension de-risking Written by Tom Cassara Share Are you looking to further de-risk your defined benefit pension plan, while improving the bottom line at the same time? If so, in this note we explore de-risking ideas that are potentially more profitable than simply shifting assets from equities to…
Read MoreCreative ideas for managing pension plan risk
Article September 14, 2021 Creative ideas for managing pension plan risk Written by Tom Cassara Michael Clark Share The past couple of years have been very interesting times for US pension plan sponsors. Obviously, the global pandemic and its effect on the economy has been the most impactful. We’ve also had new pension legislation as…
Read MoreWhen good tools are used inappropriately, bad things happen
No, all derivatives are NOT the same. Derivatives are a tool, nothing more, nothing less.
Read MorePension plan glidepath: an investment opportunity
Many frozen pension plan sponsors have established “glidepaths” to manage the allocation of assets between growth assets (typically equity) and hedging assets (typically fixed income).
Read MoreA case study in liquidity – because when it rains, it pours!
Liquidity management is of increasing importance on the agendas of trustees and plan committee members, with many plans potentially now paying out more cash out than is coming in and with the recent market volatility having a negative impact on asset levels.
Read MorePension investing – why equity derivatives now?
Equity returns of 15% or higher would usually be cause for celebration among corporate pension plan investors.
Read MoreDe-risking – is less equity better?
Is holding less equity as a plan gets closer to its funding goal the right thing to do?
Read MorePension investing – an alternative strategy for public and church defined benefit plans
Public sector and church pension plan sponsors face unique but similar financial challenges.
Read MoreA powerful 3 step strategy: increase expected return on pension assets at the same (or lower) level of funded status risk
It is possible for pension plan sponsors to increase expected returns on assets by 100 to 300 basis points (1-3%) per year for the same or lower funded status risk.
Read MorePension investing – next generation of glide paths
Pension plan sponsors, especially those with frozen pension plans, have spent significant time deciding on the most appropriate balance between growth (return seeking/equities) and hedging (liability matching/long-term bonds) assets to meet their objectives.
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