In a recent article for FundFire, Managing Partner Jim Scheinberg spoke with report Justin Mitchell about the asset hit major Outsourced Chief Investment Officer (OCIO) firms have taken amid a risk transfer boom.
“The firms losing AUM have a ‘heavy concentration’ of corporate pension clients,” Jim stated in the article. “Many companies are terminating their pensions after favorable market conditions left them financially flush. The windfall follows years of chronic underfunding, and that is going to continue over the next few years,” he added.
“There is a massive increase in the amount of frozen defined benefit plans terminating,” he said. “Over the next 36 months, you’re going to see a meaningful thinning of the herd.”