A Fair Comparison Framework
How to allocate a marginal portfolio dollar not only between equity and credit, but also between public and private vehicles.
In recent years, many U.S. corporate pension plans have closed and entered their “end-state.” CIOs managing these end-state portfolios must navigate a specific set of investment challenges and evaluate the potential impact of keeping illiquid private assets in their portfolios.
PGIM’s Institutional Advisory & Solutions (IAS) team uses its asset allocation framework (OASIS™) to help end-state plans solve for optimal asset allocations. The team’s research illustrates how CIOs can incorporate private assets to achieve return objectives while also meeting liquidity and funded status stability constraints. The OASIS framework may be used to help CIOs measure the tradeoff between portfolio performance and investor constraints, helping to make more informed decisions.
More insights from IAS
Measuring the Value of LP Fund-Selection Skill
Using the IAS fair comparison framework, this publication explores the impact of choices an investor in private markets must make.
Asset Allocation with Illiquid Private Assets
An asset allocation framework designed to help CIOs make more informed decisions concerning their strategic investments in illiquid private assets.