Pension

Recognizing the specific needs of our plan fiduciary clients, Pavilion has dedicated a team of professionals to focus on the DB business.

Plan sponsors today face a historically unique combination of market stresses and legislative challenges. We believe that many of the strategies and tools applied to yesterday’s pension management are not the best fit for today’s environment. Our team works with plan sponsors to build forward looking customized solutions that are appropriate for each pool of beneficiaries.

Our clients benefit from Pavilion’s real world experience, which we integrate with the theoretical modeling at the foundation of pension planning.

Investment processes

Pavilion partners with Plan sponsors to implement and document a prudent cycle of pension management investment processes:

  • Develop and revise investment policies
  • Conduct asset allocation studies
    • Risk budgeting
    • Asset/liability modeling
    • Stress testing
  • Investment manager research
    • Search and selection
    • Ongoing due diligence and policy compliance
  • Quarterly performance reviews
    • Performance attribution
    • Peer universe comparison
    • Funded status review
  • Fiduciary education

Liability Driven Investing (LDI)

Always skeptical of buzzwords and fads, Pavilion takes a critical eye to investment approaches that do not show true value. LDI is one of the trends that meets our high bar and warrants consideration for pension management. Since plan sponsors are in the business of meeting a specific future liability (namely benefit payments), it is logical to consider that liability in the asset allocation decision process.  Pavilion helps pension clients to analyze whether LDI is a good fit for their situation, and when it is, we partner with clients to design, implement, and manage LDI portfolios.

Retirement focus and expertise

We have a team comprised of seasoned industry professionals dedicated to both the investment and administrative issues of retirement plans. Members of our team were among the founders of the Defined Contribution Institutional Investment Association (DCIIA), an organization dedicated to bringing institutional solutions to retirement programs.