“Pension Shortfall: Solving for the Missing 2%”
Pensions & Investments
July 11, 2012

Selected excerpts:

“Unfortunately for plans relying solely on traditional equities and fixed income, the prospects look grim. Our analysis suggests these plans will likely experience a 2% shortfall per annum over the next seven to 10 years.”

“For example, the plan sponsor with a 20% allocation to alternatives (and with the remaining 80% of its portfolio invested at the same traditionalist ratios) and a 7% per annum forward equity return expectation, is implying that its alternatives investments must return 17% in order to achieve an overall portfolio return of 7.75%.”

Full article available here.


Welton Investment Partners