While the typical balanced fund is becoming a rarity among pension plans, a segment of plan sponsors continue to utilize these funds — albeit with added diversification. Traditionally, such funds have invested 60 per cent in equities and 40 per cent in bonds. But with investment options for pension plans expanding over the last 20 […]
While it may seem counter intuitive to add higher-risk securities to a portfolio during times of severe market stress, doing so can be part of a prudent rebalancing strategy, according to a paper from T. Rowe Price Inc. “Regularly reorienting to targeted long-term asset allocations helps ensure that all risk exposures in the portfolio are […]