First few Article Sentences
The Demand for More Income
Most liability-driven institutional investors are in a difficult position these days. Pension plans are faced with challenging regulatory and market conditions in the form of increased funding obligations. These reflect actuarial calculations that integrate regulations, assumptions, historical investment returns and expectations and projections for future investment results.
In a similar way, mission-driven, long-term investors such as foundations, endowments, building funds and other tax-qualified investment accounts must align their assets (short or long term) with their liabilities (minimum disbursement requirements, contractual commitments and program funding to fulfill their mission).