How Multiemployer Plan Sponsors Can Manage Relief Payments plansponsor.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from plansponsor.com Daily Mail and Mail on Sunday newspapers.
Alternative investments and private assets might help defined benefit plans diversify and generate more returns.
Reported by
The endowment model for investing suggests that long-term investors with access to illiquid investment opportunities, such as higher education institutions, should have relatively high allocations to alternative assets, which can help them earn greater returns.
Like endowments, defined benefit (DB) plans are also long-term investors, though many DB plans have different liquidity needs than higher education institutions. Still, sources say, DB plans can take some cues from the endowment playbook.
Adam Levine, investment director of Aberdeen Standard Investments’ Client Solutions Group, says DB plans are very focused on their goals. They aim to have a good funded status relative to liability and to ensure they have enough funds to pay all obligations promised. “DB plans are very much oriented to a specific outcome and what they want to achieve for the pla