* Benefits of Bond ETFs

Recent market difficulties have drawn attention to the risk management practices of institutional investors. particularly significant was the fact that negative equity market returns were eroding plan assets at the same time as declining interest rates were increasing benefit obligations. these events have spotlighted the weakness of current funding standards for corporate defined benefit pension plans. They have also emphasized the weakness of investment practices.

There are readily available tools that can allow institutional investors in general, and pension funds in particular, to implement a more structured investment and risk management process. More specifically, it can be shown the benefits that institutional investors can gain from the implementation of active and passive asset allocation decisions cast in the context of core-satellite portfolio management and implemented by dynamic trading in bond Exchange Traded Funds. (ETFs)

Details: Benefits of bond ETFs for institutional investors, The Natural Vehicle for a core-satellite approach