Plan sponsors should consider fixed income game plan

Fixed income strategies, says the Principal Financial Group, will work in all interest rates environments.

By Paula Aven Gladych | Updated on December 02, 2013

Since nobody can plan for every contingency, including rising interest rates, the Principal Financial Group recommends that defined benefit plan sponsors use a fixed income strategy that works in any interest rate environment.

It tested out three fixed income strategies using rising interest rates, falling interest rates and rates that stay the same over a 10-year period. Each strategy was evaluated on its impact to funded status and total accounting cost.

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