January 6, 2016
December 2015 Pension Plan Funding Update
December was a negative month for Pension plans as liabilities (BofA Mature 12 year duration index) outperformed assets (60% ACWI/40% Barcap Agg) by 1.2%. The 1.2% difference was the third smallest monthly move this year.
Return seeking assets were down -1.2% continuing the slide that started in November. Assets trailed liabilities by 1.2% for the year. There were six volatile monthly moves in funded status during the first ten months of the year. The last two months for funded status volatility was subtle relative to the rest of the year.
Nick Botticelli, Director, Pension Portfolio Management
Nick is a Director at Hirtle Callaghan in the Investment Strategy Group and the Head of Pension Portfolio Management. Prior to joining, Nick spent over 16 years at Verizon Investment Management Co. serving in various roles. Most recently Nick was the Executive Director of Global Public Assets where he reported directly to the CIO of Verizon Investment Management. Nick was responsible for manager selection and due diligence of $40 billion globally in Global Equities, Global Bonds, Hedge Funds, Currencies and Commodities. In addition, Nick served as one of the three person asset allocation committee deciding on the strategic and tactical direction of the pension plan. Recent large projects included a $7.5 billion pension risk transfer, 401k target date diversification and the addition of liability driven investments to the pension portfolio. Nick was responsible for the public investments in five different trusts including Defined Benefit, Defined Contribution, VEBA’s, Captive Insurance and Foundation. On-going functions of the Global Public Investment team which Nick managed, included evaluation of asset allocation models, funded status, hedge ratio, monitoring of performance, organization structure, risks, compliance, legal agreements, fee structuring, account structure of both existing and prospective portfolios and asset classes. He is a graduate of Pace University.