Many corporate pension plans have already taken several de-risking steps, including extending the duration of their fixed income, reducing the allocation to return-seeking assets, offering term-vested lump sum payouts, etc. As plan sponsors approach the end of their de-risking glidepath and begin to think about the structure of their end-state/hibernation portfolio, a logical next step is to customize their fixed income assets to more precisely match the exposures of the liability. Naturally, this step can introduce challenges and complexity. Utilizing a completion manager can address many of these challenges. In this paper we discuss the role of a completion manager, NISA’s approach to completion portfolio management, and some particular implementation considerations.
Primer on Completion Portfolio Management
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