10 investment actions for DB plans in 2017

November 22, 2016
| United States

The investment world has become increasingly complex. Pension plan investment committees have access to more ideas than they have time to consider, let alone implement. This complexity can be daunting, but complacency is not an option. Heightened risk throughout the world and evolving U.S. pension regulations have made it more challenging for pension plans to pay current and future beneficiaries. So what can you do to make your time commitment more meaningful to long-term plan success? Below, we suggest our top 10 investment actions for 2017. We believe a variety of operational, strategic and portfolio management goals will help you best use your limited resources to improve investment outcomes in 2017 and beyond.

Find the “rational” in operational goals

  • Assess critical resources and fiduciary risk
  • Leverage an array of tools to evaluate financial strategies

The right strategy gets the right results

  • Better align strategy and time horizon
  • Reduce nonstrategic activities such as short-term manager return monitoring
  • Define, evaluate and monitor key funding risks

Smart portfolio management

  • Diversify traditional portfolio exposures into less macro-sensitive markets
  • Assess and utilize all paths to implementation
  • Improve the risk/return profile with options
  • Be purposeful about timing interest rates
  • Define how different environments impact your liability-driven investment portfolio