Legislation And Accounting Rules Driving US Pension Plan Sponsors Into New Investment Strategies

Funding requirements set by the US Pension Protection Act and new accounting rules have propelled companies to consider risk management and investment strategies that they once shied away from for their defined benefit plans, according to a recent survey by

By None

Funding requirements set by the US Pension Protection Act and new accounting rules have propelled companies to consider risk management and investment strategies that they once shied away from for their defined benefit plans, according to a recent survey by Pyramis Global Advisors. According to the survey of 214 directors of the largest DB plans in the U.S., half of all corporate DB plans said they were using or considering liability-driven investing (LDI), and for the first time, corporate DB plans’ allocation to fixed income surpasses that of public DB plans.

«