October 23, 2014
Never Again: Start Now to Protect Gains in Your Pension Plan’s Funding
Pension plan funded status has come a long way since the ravages of the financial crisis and today stands near a seven year peak. For plans that have not started down the de-risking path, now may be the time to begin locking in gains. Heading into 2008, most pension plans were healthy and overfunded. By the end of that climactic year, the average plan had been devastated by a “perfect storm” of increasing pension liabilities (from falling interest rates) and falling asset values. Having been burned in 2008, wise pension sponsors are taking a “never again” approach to protecting their plan’s funding.
We have included the first page of the pension piece below. If you would like to receive the full perspective, please contact us.
Nick Botticelli is a Director of Investment Strategy and Pension Portfolio Management at Hirtle Callaghan. Prior to joining Hirtle Callaghan, Nick spent 16 years at Verizon Investment Management Co. where he was the Executive Director of Global Public Assets reporting 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.
If you would like to learn more about LDI and our experience reducing risk and enhancing performance in pension portfolios, please contact Nick at firstname.lastname@example.org