David Gordon on the Middle East, Europe and the 2011 Risk Management Conference.
The last decade has been unpleasant for DB pension plans, even before the 2008 market crash. The Great Recession further exacerbated these challenges as global equity markets tumbled and central banks around the world lowered interest rates to stimulate the global economy. This caused their liabilities to increase while their investments declined. To make matters […]
One of the potential solutions outlined for managing excessive risk concentration is the use of an overlay portfolio. Overlay portfolios are managed by the plan sponsor or by a third party, and can be used for tactical asset allocation or for hedging of risks incurred by an external manager to which the plan sponsor does […]
The rise of risk factor based strategies.
Why don't pensions funds estimate permissible losses?
Coverage of the 2011 Global Investment Conference.
In my previous column, Examining portfolio risk, we discussed ex-ante risk, ex-post risk and how both measures can provide greater understanding of portfolio risk. In this column I would like to discuss the options that are available to a pension fund manager that discovers excessive risk concentration in a fund through ex-ante risk reports. When […]
Coverage of the 2011 Global Investment Conference.
When we think of risk, we often define it in financial terms as risk by its very nature often comes with financial consequences. From a benefits plan perspective, we frequently focus on how benefits are funded and underwritten—how the risk is shared between plan sponsor, employee and insurer. However, not all risks are explicitly financial—some […]
They were supposed to be simple - now some are too complex.