Derivatives
PENSION PLANS & THEIR SPONSORS —
A Unique Expertise
Serving Pension Plan needs is a core expertise of The Bank of New York Mellon that bridges Asset Servicing and Asset Management. Too frequently pension plan management has become an exercise solely in investing, rather than a comprehensive strategy that encompasses risk management across the sponsor, plan and beneficiary profiles. Our professionals are integrated into cross-disciplinary teams to deliver services that span Investment management, asset allocation, asset/liability & volatility and management, as well as trust and custody.
Working in concert within these disciplines, Derivative Product specialists develop hedging strategies and specialized structured investments that can be incorporated into Pension Plan asset/liability & volatility management. Sample transactions developed for Pension Plans include:
- Option portfolios designed to provide accelerated returns when interest rates fall and pension liabilities soar
- Equity index hedging programs that mitigate risk when stock markets fall
- Structured investments that provide risk/return profiles tailored to reduce inter-period volatility
- Total rate of return swaps to supply highly efficient unfunded sources of Beta