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Retirement Savings: Why Hedging Inflation Is Important
by Stacy Schaus of PIMCO, 9/1/17

Although inflation may seem a distant threat, even modest inflation can prove devastating to retirees who depend on income that does not adjust with inflation.

How Much Do I Need To Retire?
by Stacy Schaus, Ying Gao of PIMCO, 1/3/17

Grappling with the question of how much is one of the toughest relating to pensions

Align the Design: Considering and Evaluating Target-Date Glide Paths
by Stacy Schaus and Ying Gao of PIMCO, 5/16/15
Few responsibilities are as important to defined contribution (DC) plan sponsors as selecting a default glide path that best maximizes a participant’s odds of retiring on time and with sufficient lifetime income. The goal, put simply, is to maximize asset returns while minimizing volatility relative to the retirement liability – precisely what Objective-Aligned Glide Paths aim to achieve.

Designing Balanced DC Menus: Considering Equity Investments
by Stacy Schaus, Ying Gao of PIMCO, 12/9/14
Defined contribution investment lineups typically provide numerous equity choices but still may lack adequate diversification and return potential. Participants may benefit by accessing high-growth markets such as emerging markets and tapping in to dividend-paying stocks. Retirement outcomes could improve further by including portfolios structured using fundamental measures rather than market capitalization.

Designing Balanced DC Menus: Considering Inflation-Hedging Strategies????
by Stacy Schaus, Ying Gao of PIMCO, 6/19/14
Inflation-hedging strategies are fundamental to DC investment lineups and participants? need to build and preserve purchasing power in retirement. Plan sponsors should evaluate these assets separately and in combination before adding them to core lineups and target-date strategies. Selected assets or blends should be designed to deliver the primary benefits of inflation responsiveness, diversification relative to stocks, volatility reduction and downside risk mitigation.

Designing Balanced DC Menus: Considering Diversified Fixed Income Choices
by Stacy Schaus, Ying Gao of PIMCO, 4/17/14
Sponsors of defined contribution plans face a dual challenge: They must present investment options appropriate for plan members and design menus that encourage selection of well-structured portfolios. We believe that actively managed strategies designed to potentially reduce risks, invest globally and enhance yield relative to the index may improve diversification and lower concentration risk in fixed income offerings. Plan sponsors may consider a range of return and risk measures as they evaluate current and prospective fixed income offerings.

Global DC Plans: Similar Destinations, Distinctly Different Paths
by Stacy Schaus, William G. S. Allport, Justin Blesy of PIMCO, 5/30/13
DC plans in in the U.S., Australia and the U.K. may benefit from better aligning asset allocation defaults to workers needed outcome: purchasing power in retirement. Focusing on needed outcomes would suggest a higher allocation to real assets, earlier de-risking and consideration of tail risk hedging.

DC Plan Sponsors: Now's the Time to Get More From Bonds
by Stacy Schaus of PIMCO, 3/14/13
Long on equities and light on bonds, todays DC plan lineups may expose participants to extreme market risks. Plan sponsors could potentially improve retirement outcomes by trimming choices for stocks and considering additional options for bonds. The inclusion of active fixed income strategies with global exposure or additional income opportunities could help participants reach their retirement goals.

Thrown in Over Their Heads: Understanding 401(k) Participant Risk Tolerance vs. Risk Capacity
by Stacy Schaus, Ying Gao of PIMCO, 10/4/12
Our analysis suggests as investors in target-date strategies near retirement they become more attuned to market swings. We believe 401(k) plans cannot succeed if participants jump out of markets at the bottom and possibly miss a rebound. Plans need to have tolerable downside risk, so participants can ride the market waves. The way to manage target-date assets, in our view, is to focus first on the risk capacity of participants relative to meeting an income goal. We ask, how much of one's final income will need to be replaced in retirement?

Focusing on Capital Preservation: Stable Value and Possible Alternatives
by Brett Gorman, Henry Kao, Stacy Schaus of PIMCO, 6/28/12
Stable value, which combines an actively managed fixed income portfolio with a contract to help assure principal and income, offers capital preservation potential and historically higher risk-adjusted returns than money market and low duration strategies.

Loss Capacity Drives 401(k) Investment Default Evaluation
by Stacy Schaus and Ying Gao of PIMCO, 5/25/12
Based on our research, we believe retirement plan participants capacity for loss may be much lower than many investment default options accept as tolerable. Regardless of asset allocation structure, an investment default option should maximize the likelihood that each plan participant will meet his or her retirement income needs. One of the keys to meeting a set income replacement goal is to understand how much plan participants can afford to lose at every age as they approach retirement.
11 results found.