An inherent challenge faced by many pension plans wishing to implement de-risking strategies is their inability to respond swiftly to changing market conditions. The key is implementation. DB plan sponsors must look at de-risking as:
- A framework for managing their plan throughout its lifecycle
- A way to gain a better understanding of their plans' liabilities in the context of their plan as a whole
- An occasion to delegate some investment responsibilities to a strategic partner such as an external manager to allow for quicker decision-making and better focus
How many plan sponsors have a mechanism in place to identify and quickly exploit opportunities found on the marketplace? Funding volatility is high and chances to capitalize on upside and mitigate downside scenarios are missed at DB plans’ peril. It is against this backdrop that de-risking has become a much discussed investment strategy in the pension world.
Read SEI's white paper Demystifying De-risking (PDF)
SEI Can Help
As a leading Manager of Managers globally, SEI is well-positioned to assist Canadian pension plans with timely decisions relating to the overall management of their plans. Our pension solution can enhance pension governance and decision-making by freeing the pension plan sponsors from the operational burden of running the pension plan investment strategy but leaving the executive decisions and oversight with the plan sponsors.