This 2009 survey-based study describes how large global funds manage investment risk from strategy to implementation. In total, fifty-eight funds with assets aggregating to almost U$2 trillion participated in the survey. Almost all large funds (over U$25 billion) use some form of risk budgeting,...

The Pension Benefit Guaranty Corporation (PBGC) insures private sector defined benefit (DB) pension plans when an employer becomes insolvent and is unable to pay its pension liabilities. In principle, the insurance premiums collected by PBGC should be sufficient to cover potential losses; this...

There has been a surge of interest in recent years from defined benefit pension plan sponsors in de-risking their plans with strategies such as “longevity hedges” and “pension buyouts” (Lin et al., 2015). While buyouts are attractive in terms of value creation, they are capital intensive...

Defined-benefit (DB) pension funds, often underfunded, rely on the legal obligation of their sponsor to secure pension rights for individuals.Because that guarantee is risky, ways must be found to secure the pension promises. This paper is the first to identify the optimal pension fund...

Today, many defined benefit pension funds across the world are closing in response to twelve years of intense market volatility and dramatic increases in life expectancy. To the casual observer, it must seem as though the risk of maintaining a defined benefit pension fund has contributed to its...

The object of this study is to analyze investment efficiency of pension funds by examining the portfolios of four mandatory pension funds (AZ, Erste Plavi, PBZ Croatia osiguranje and Raiffeisen). In this study, the pension system is analyzed through two step procedure. The study will first focus...