@article {Hunt79, author = {Andy Hunt and Stuart Jarvis}, title = {A Goal-Focused Approach to Full Funding: Making PensionPlans More Adaptive to Change}, volume = {1}, number = {2}, pages = {79--90}, year = {2013}, doi = {10.3905/jor.2013.1.2.079}, publisher = {Institutional Investor Journals Umbrella}, abstract = {The authors outline current best practices in designing and implementing a pension plan{\textquoteright}s optimal investment policy toward a clearly defined funding goal given the plans{\textquoteright} liabilities. Two key factors point to a dynamic approach: Changes in the plan{\textquoteright}s funding ratio and changes in the investment opportunity set. The authors demonstrate how the range of potential outcomes for the pension plan is improved when its investment policy becomes goal-focused and adaptive to changing circumstances, and refer to this approach as {\textquotedblleft}Journey Management.{\textquotedblright} The authors propose not a single one-size-fits-all strategy, but a framework that can be tailored to a plan{\textquoteright}s unique situation. They speculate that improved governance will likely be required to effectively implement such an approach.TOPICS: Pension funds, risk management, volatility measures}, issn = {2326-6899}, URL = {https://jor.pm-research.com/content/1/2/79}, eprint = {https://jor.pm-research.com/content/1/2/79.full.pdf}, journal = {The Journal of Retirement} }