Skip to main content

How stress testing your portfolio can improve decision making

Prior to the COVID-19 pandemic, investors were concerned about uncertainties in trade, geopolitics and Brexit as well as investment complexities like low returns and market volatility. This demonstrates the reality that threats to a plan sponsor’s ability to meet plan obligations can come in many forms. That said, unexpected swings in funded status are potentially forcing a new view of measuring liability. Simple improvements in pension plan reporting and governance practices can provide better identification and effective management of risk on an enterprise level.

In a recent IFEBP (International Foundation of Employee Benefit Plans) Plans & Trust Magazine article, Kendra Kaake, CFA, explores considerations in assessing downside risk and how plan sponsor can take a more holistic view of plan asset allocation, including enterprise-specific goals, strategic business objectives, risk tolerances, legislative and regulatory impact and return requirements. 

Read the full article here.

SEI Investments Canada Company, a wholly owned subsidiary of SEI Investments Company, is the Manager of the SEI Funds in Canada.

The information contained herein is for general and educational information purposes only and is not intended to constitute legal, tax, accounting, securities, research or investment advice regarding the Funds or any security in particular, nor an opinion regarding the appropriateness of any investment. This information should not be construed as a recommendation to purchase or sell a security, derivative or futures contract. You should not act or rely on the information contained herein without obtaining specific legal, tax, accounting and investment advice from an investment professional. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. There is no assurance as of the date of this material that the securities mentioned remain in or out of the SEI Funds.

This material may contain "forward-looking information" ("FLI") as such term is defined under applicable Canadian securities laws. FLI is disclosure regarding possible events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action. FLI is subject to a variety of risks, uncertainties and other factors that could cause actual results to differ materially from expectations as expressed or implied in this material. FLI reflects current expectations with respect to current events and is not a guarantee of future performance. Any FLI that may be included or incorporated by reference in this material is presented solely for the purpose of conveying current anticipated expectations and may not be appropriate for any other purposes.

Information contained herein that is based on external sources or other sources is believed to be reliable, but is not guaranteed by SEI Investments Canada Company, and the information may be incomplete or may change without notice.

More on the current Market

Starting an OCIO search?

There's an important question you can't skip.