Milliman Q3-2015 Pension Study: Applying the Milliman Managed Risk Strategy

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By Tamara Ann Burden, Mitch Morin | 13 January 2016
The Milliman 100 with the Milliman Managed Risk Strategy (MMRS)™ began at the end of the second quarter of 2015, asking the question “what could have happened had the 100 largest corporate pension plans in America adopted MMRS at the turn of the 21st century.” Updated quarterly, the analysis takes a look into market events and phenomena that affect both pension plans and MMRS itself. The third quarter of 2015 may have been a portent of events that are still unfolding into 2016. Changing interest rates, Chinese economic trouble, and a glut in oil supply all affect a well-diversified equity portfolio, but MMRS helps subdue the adverse effects of heightened equity portfolio risk. In the third quarter of 2015, the Milliman 100 with MMRS began derisking right as volatility was peaking, interest rates were dropping, and contribution risk was increasing.