One of the most important choices defined benefit (DB) plan investment committees will make is deciding the type and amount invested in asset classes over the long term. The process for making this decision is known as the strategic asset allocation review (or just “strategic review”). Generally, a strategist with expertise in both assets and liabilities completes the analysis and communicates the results to sponsors.

This paper dives into the following:

  • Purpose of, and contributing factors to, strategic asset allocation
  • Strategic review frequency
  • Strategic review process
  • Plan sponsors’ decision points
  • Risk tolerance assessment
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