Forecasting Investment Returns and Expected Return Assumptions for Pension Actuaries

OpinioPro Selection
By March 30, 2019 15:02

Forecasting Investment Returns and Expected Return Assumptions for Pension Actuaries

Introduction

Pension actuaries select or recommend investment return assumptions for a variety of purposes, including accounting and financial reporting, public and multiemployer funding valuations, and projections of future funding and solvency levels or asset liability modeling. When selecting or recommending the expected investment return assumption, many actuaries rely on capital market assumptions (CMA) and modeling from outside parties, such as their firm’s internal investment practice, the plan’s investment consultant, or publicly available white papers or surveys. The range of capital market assumptions used by these outside parties can be significant. In some instances, actuaries might develop expected investment return assumptions on their own. 

OpinioPro Selection
By March 30, 2019 15:02

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