FROM: Lisa Sorani, Manager of HR Employee Services LS -

More documents

Recommendations

Info

INVESTMENT OPTION 4-C r • Option 4 – C: Barbell llApproach (continued) • Benefits o o o Less reduction in credit quality compared to option A or B Reduced exposure to rising interest rates Higher return than traditional fixed income • Drawbacks o o Reduced return potential due to safe side of the barbell High Yield and Bank Loans are relatively expensive Pension Consulting Alliance, Inc. ││ EBMUD Fixed Income Discussion │ 54
CONCLUSIONS r • Interest t rates are near all time lows as a result of unprecedented d actions taken by the Fed • Plan Sponsors face an extremely challenging situation o o o o o Low Bond yields make it exceedingly difficult to meet their actuarial return assumptions without t significantly altering the composition of their portfolio Compounding the problem is the fact that traditional Fixed Income benchmarks are highly weighted in Government backed debt – proportion is growing *** The base case for the evolution of the interest rate environment is not overwhelmingly positive - we can see from 1954 that small increases in interest rates over long time periods can be exceedingly detrimental to Fixed Income portfolios Despite the lackluster base case, alternative ti scenarios exist with far greater downside for Fixed Income investors While it is exceedingly unlikely that the U.S. would experience any of the more severe outcomes outlined, it is important to note that it is a continuum of outcomes and that very poor outcomes can occur for Fixed Income investors even at relatively modest potential scenarios *** Pension Consulting Alliance, Inc. ││ EBMUD Fixed Income Discussion │ 55
Page 21 and 22:
M E M O R A N D U M Date: April 29,
Page 23 and 24:
Recent Investment Performance Barro
Page 25:
Additional Considerations Barrow Ha
Page 29 and 30:
For example, as of the most recent
Page 31 and 32:
Q1 - 2013 Preliminary Recent Invest
Page 33 and 34:
Q1 - 2013 Preliminary Periods endin
Page 35:
Q1 - 2013 Preliminary Fixed Income
Page 38 and 39:
AGENDA ITEMS Section Tab Current In
Page 40 and 41: THE CURRENT INTEREST RATE ENVIRONME
Page 50 and 51: SECTION 2 LOOKING FORWARD Source: W
Page 52 and 53: LOOKING FORWARD: INTRODUCTION r •
Page 54 and 55: LOOKING FORWARD: POSSIBLE OUTCOMES
Page 56 and 57: POSSIBLE OUTCOMES: ALTERNATIVE SCEN
Page 78 and 79: LOOKING FORWARD: CONCLUSIONS r •
Page 80 and 81: INVESTMENT OPTIONS r • In light o
Page 82 and 83: INVESTMENT OPTION 2 r • Option 2:
Page 84 and 85: INVESTMENT OPTION 4 r • Option 4:
Page 86 and 87: INVESTMENT OPTION 4-A r • Option
Page 88 and 89: INVESTMENT OPTION 4-B r • Option
Page 92 and 93: CONCLUSIONS r • There are a few a
Page 95 and 96: Considering a Real Return Class Eas
Page 97 and 98: Defining Inflation • Inflation is
Page 99 and 100: Expert Views 5
Page 101 and 102: Expert Views: Inflation Doves • B
Page 103 and 104: Expert Views: Inflation Doves The E
Page 105 and 106: Expert Views: Inflation Hawks • B
Page 107 and 108: Expert Views: Inflation Hawks The E
Page 109 and 110: Expert Views: Summary • Experts a
Page 111 and 112: Institutional Investor Response •
Page 113 and 114: Modeling the Real Return Class •
Page 115 and 116: Modeling the Real Return Class •
Page 117 and 118: Implementing a Real Return Class
Page 119 and 120: Appendix 25 25
Page 121 and 122: Modeling a Real Return Class SUMMAR
Page 123 and 124: A Brief Description of Global Infla
Page 125 and 126: A Brief Description of Absolute Ret
Page 127 and 128: A Brief Description of Absolute Ret
Page 129 and 130: A Brief Description of Commodities
Page 131 and 132: A Brief Description of Oil & Gas RE
Page 133 and 134: A Brief Description of Oil & Gas RE
show all

FROM: Lisa Sorani, Manager of HR Employee Services LS -

Create successful ePaper yourself

Delete template?

Save as template?