Building resilience with more flexible solutions
BUILDING RETIREMENT RESILIENCE

Re-think fixed income

With yields reaching highs against a backdrop of slowing growth and increased market volatility, plan sponsors should consider reassessing fixed Income exposures for the new market regime.

Building resilience with more flexible solutions

Flexible fixed income strategies—like Core Plus and Unconstrained solutions—can access broader toolkits, potentially allowing investors to capture higher yields available to fixed income investors, while keeping risks contained. Plan sponsors should consider exploring the benefits of more flexible strategies in their core menu:
Yield & return potential
Yield & return potential
Potentially access attractive, high-quality yields that are available in the market, while avoiding overly concentrated bets in today's uncertain environment.
Risk management
Risk management
Add diversification across multiple fixed income asset classes and risk factors and dynamically adjust duration as policy plays out in the new regime.
Asset allocation
Asset allocation
Navigate opportunities and risks across both core and non-core exposures and help remove the allocation burden for participants.
RE-EXAMINING PLAN MENUS

Take action

Building resilience may require plan sponsors to examine retirement plan menus for 2023 and beyond. Consider these portfolio actions:

Rock climbing
Seek consistent alpha

Seek consistent alpha

The need for additional returns from active management is greater than in prior years as inflation is eroding many participants’ retirement savings. Active strategies that are low-cost and seek to deliver consistent, incremental alpha may help solve potential savings challenges in retirement plans.

Choppy waters
Withstand volatility

Withstand volatility

With market volatility expected to continue, participants will need solutions that provide greater stability to stay invested. Consider solutions that offer lifetime income and options that may be resilient in down markets, like value-oriented strategies.

Portfolio construction
Diversify return streams

Diversify return streams

In today's market, finding alternative ways to diversify traditional equity and bond strategies may be beneficial to retirement plans and participants. Unlock the potential for diversification through differentiated investment strategies like tactical asset allocation.

Download the full report to learn more

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