By: Ron Ryan, CEO, Ryan ALM, Inc.

We are pleased to share with you the latest research from Ron Ryan, who provides a unique perspective on asset allocation and the important role that Cash Flow Matching (CFM) can play in helping plan sponsors achieve the elusive ROA. How would you like another 50 bps with little risk? Using CFM to defease pension liabilities through a corporate bond exposure (primarily A/BBB+) could enhance the fixed income return versus the Aggregate Index that is heavily skewed to lower yielding government securities. In addition to the enhanced return, the CFM strategy provides the necessary liquidity to meet ongoing benefits and expenses.

We are acknowledged experts in Cash Flow Matching. We regularly provide a free analysis on what a CFM strategy could do for you and your plan as it relates to the critically important management of assets/liabilities. Don’t hesitate to reach out to us. We look forward to being a resource for you.