Cerulli Associates surveyed mid-sized pension plan sponsors at the end of 2018 to evaluate their primary concerns. The results were published in April 2019 and entitled “Derisking DB Plans in Flux”. One notable statistic revealed plan sponsors were most concerned about the interest rate environment and the impact on funded status. According to the survey, related financial market volatility had a lasting impact on those responsible for pension asset management. Therefore, it is implied that going forward there will be greater emphasis on plan de-risking.
Two other important concerns were third-party investment management fees, and risk-adjusted performance. To address these issues, the study also notes that plans should “take a more holistic view” about plan assets and their risks, in relation to the asset/liability management.