The U.S. asset management industry is on the brink of revolutionary change as plan sponsors look beyond their focus on asset growth and investment management returns to strategies for funding pension liabilities, says a study by Greenwich Associates.
According to results of the 2006 U.S. Investment Management Research Study, the popularity of strategies such as liability-driven investment, absolute return, portable alpha, 120/20, and 130/30 is growing.
“Although actual usage of these products remains relatively low, there are signs that the current period might well represent the calm before the storm,” says Rodger Smith, one of the firm’s consultants.
Greenwich says the shift in strategy is being driven by two major trends: underfunding and accounting reform.
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