Paul Sweeting, European Head of the Strategy Group, takes a look a de-risking and how right risking can provide for growth while moderating unrewarded interest rate risk.

This note describes one potential investment strategy that provides pension investors with the ability to more closely match the interest rate sensitivity of their assets to their liabilities while maintaining equity market exposure.

Current yields are often considered to be low when compared to history and future forecasts. As such, many funds are postponing liability hedging until rates rise. In this paper we consider several options that suggest that inactivity may be the wrong option.