As the COVID-19 situation continues to evolve, we are faced with falling equity markets, declining US Treasury yields, and widening corporate bond spreads. In response, you may be considering changes for your DB plans.

To support you in this process, we have compiled a helpful resource for DB investing during this unprecedented period. In “DB investing in a time of market volatility,” you will find insightful information to help you determine the best course of action for pressing challenges, such as whether to rebalance or take on more funded status risk. It also includes pros and cons to consider before you:

 

  • Increase the allocation to equity
  • Lower the fixed income portfolio duration
  • Move from Treasury to high quality corporate bonds

 

Please see Important Notices for further information.

1Mercer does not provide legal advice. You should contact your attorney before making any decisions with legal implications.


Have questions? Contact a Mercer consultant today.