With little certainty in the current market environment, CFOs and those that run pensions are interested in reducing exposure to pensions financial risk.
In a new Mercer report (in conjunction with CFO Research) entitled Evolving Pension Risk Strategies, 49% of financial officers say they are currently matching the duration of fixed-income investments to defined benefit plan liabilities. Forty-three percent are shifting assets into lower-risk categories as a company’s funded ratio improves – something known as “dynamic de-risking.”
