A new paper released by JPMorgan Asset Management (JPMAM) suggests that pension plans should adopt a risk management approach similar to the one used in corporate finance, one that measures and controls the risk the plans add to the balance sheet, earnings, and cash flow. One of the recommendations from JPMAM is to reduce “uncompensated” interest rate risk by narrowing the duration mismatch between plan assets and liabilities and the management of the risk of equity concentration in a pension plan through the implementation of a Broadly Diversified Investment Portfolio.
Run Pension Plan Like Any Other Corporate Finance Risk, JP Morgan Asset Management Tells Plan Sponsors
A new paper released by JPMorgan Asset Management (JPMAM) suggests that pension plans should adopt a risk management approach similar to the one used in corporate finance, one that measures and controls the risk the plans add to the balance
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