Top 11 investment considerations for DB plans in 2021

We’re approaching the end of a year defined by social unrest, political change and a global 

 

pandemic — significant challenges that have led to an uncertain economy and volatile financial markets as well as historically low interest rates. We encourage defined benefit (DB) plan sponsors to note the lessons learned and plan accordingly for the impact of the new environment on their financial realities. The considerations outlined in this paper address a range of topics, from the effects of COVID-19 to opportunities for diversification, rebalancing and risk-transfer strategies to the routine exercise of setting financial assumptions.

 

Mercer’s consultants are ready to help guide you through each of these issues.

 

This paper focuses on these investment considerations for 2021:

 

  1. Assessing the short- and long-term impact of COVID-19 on your plan’s assets
  2. Evaluating the impact of COVID-19 on your liabilities
  3. Setting assumptions in a low rate environment
  4. Rebalancing and executing changes quickly in a turbulent world
  5. Buying annuities
  6. Updating your glide path’s interest rate triggers and adjusting hedge ratio
  7. Diversifying — and why it’s more important than ever
  8. Increasing diversification within a liability-hedging portfolio
  9. Managing credit-spread risk
  10. Harnessing the benefits of diversity
  11. Positioning for transition

Download the whitepaper to learn more.

Download the whitepaper

 

Please see Important Notices for further information.