Benefits and Pensions Monitor 2005/2006 Annual review and forecast

Location Date: 
Hedge Funds, Finding Unique Returns Streams, December, 2005

Pension plan funding surpluses and shortfalls tend to vary with longer-term interest rate assumptions and plan beneficiaries' life expectancy assumptions on the liability side, versus actual and assumed rates of return on the asset side. Linking these factors with alternative strategy return components can create diversification benefits for traditional portfolios. These diversification benefits include both higher potential returns and lower total portfolio volatility. Click here for full story...