In just the last five years, total US institutional assets under management by Outsourced Chief Investment Officers has continued to grow steadily, and is projected to reach nearly $2 trillion in 2021.
With the initial chaos of the COVID-19 pandemic somewhat behind us but much uncertainty and potential volatility ahead, plan sponsors will be well served by focusing on—and possibly recalibrating—some core plan management elements. These approaches include liquidity management, rebalancing processes and opportunities, governance, and communication.
For plan sponsors that wish to de-risk, the Agg is not the solution Some defined benefit pension plan sponsors that have not begun to de-risk are hesitant to shift out of Agg-based fixed income allocations toward longer-duration mandates in the current environment, citing the specter of rising interest rates. Lengthening the duration of the existing…