Global Invested Capital Market
The concept of a world market portfolio features prominently in many financial theories and models and serves as an important foundation of our asset allocation work for our clients. The world market portfolio is the collection of all assets available to investors in proportion to their relative market value.
Lump-Sum Windows: A Strategy to De-Risk Pension Plans
Providing a guaranteed retirement benefit to employees through a defined benefit pension plan can be financially risky for employers. As investments change in value, interest rates fluctuate, new mortality tables are introduced, and Pension Benefit Guaranty Corporation (PBGC) premiums increase, a plan’s funded status can become quite volatile. One strategy many employers use to mitigate these financial risks is to amend the pension plan to offer terminated, vested participants an immediate lump sum cash payment through an interim or “window” program.