Part of River and Mercantile Group PLC
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Integrated Actuarial and Investment Solutions
P-Solve is a leading institutional investment and actuarial advisor and fiduciary manager. We are dedicated to providing our clients with the understanding and tools to successfully meet the investment goals of their institution. P-Solve is a division of River and Mercantile Group PLC, which is publicly traded on the London Stock Exchange (Ticker: RIV).
Plan sponsors should see little change in funded status as of the end of February. Negative equity returns offset decreasing liabilities. Discount rates rose by over 0.2% in February to their highest level since April 2017. At the same time, the 3.7% decline in the Russell 1000 index of US stocks represented to worst monthly performance for equities since January 2016, when stocks fell by 5.4%.
This article addresses three major features common to most TDFs’ structure: asset allocation (specifically, equity exposure), management style (including active and passive management, use of proprietary funds, and tactical asset allocation), and fees – which, if not evaluated carefully and on a manager-by-manager basis, could result in a mismatch between an employer’s goals and participant investment results.
Strong markets coupled with favorable changes in corporate tax rates made 2017 a very good year for pension plan sponsors. The continuing run up in the equity markets meant that most plan sponsors saw funded status improvements in 2017 in spite of discount rate declines.