Integrated Solutions for Pension Funds
This week, coincidentally two interesting articles hit the press. First, it was reported that Prudential executed a “buy-in” strategy with a corporate pension plan. This transaction essentially insures risks to pension liabilities. As part of the transaction, the investment strategy will focus on core fixed income instruments. If such transactions become more prevalent, the asset management industry will clearly be affected.
The same day I read an article reporting on Phil Duff’s new firm, Massif Partners. The intent of this enterprise is to provide integrated solutions to pension funds through both asset strategies and risk management on the liability side of the balance sheet, integrating the efforts to result in optimal solutions. Again, if this type of service grows in prominence, the asset management industry as we know it will be threatened.
Are these announcements coincidental or do they represent a trend?
JM
Add comment June 2nd, 2011
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