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

Ryan ALM, Inc. is pleased to raise awareness about a challenging and ongoing pension fund activity – liquidity management. The payment of benefits and expenses is a critical function. Liquidity needs to be available when needed. However, frequently plan sponsors or their advisors are scurrying to find liquidity anywhere it presents, such as equity dividends, fixed income interest, and capital distributions. This practice of “sweeping cash” can lead to a negative impact on growth assets. The changing interest rate environment may also weigh heavily on cash balances. These issues and more are discussed in the brief research piece.

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