US Midsize Public Pension Plan

Our client had wisely provided a defined contribution plan for their employees to invest at retirement. It was a popular offering and the markets performed well in the early years. But with its popularity came concern for the future. Would the next 5 years look as good as the last? Would the equity allocation be too great a risk going forward? How would the fixed income allocation perform if/when rates started to rise? The responsibility to take a critical look at the plan weighed heavily on the board of trustees who cared deeply for their employees and retirees but were not financial professionals.

They needed a partner who could work closely with them to shape their needs and concerns into an actionable set of priorities.

We developed a bespoke plan in a competitively priced CIT structure to provide liquidity, transparency, and comparatively low-cost. To address the low-rate environment, we chose active fixed income over passive. Within the equity allocation, we agreed that a core beta allocation with active sub-asset classes provided the client with the right blend of cost effectiveness and alpha.

The client chose to work with us due to our willingness to take the time to understand their needs, engage and inform. Confidence from the board, as well as employee participation, has grown over time through the ongoing support and education we continue to provide, especially during turbulent markets.