The Actuarial Interest Rate as an Investment Objective
Bache, 1979
3 Pages Posted: 29 Mar 2014
Date Written: September 13, 1979
Abstract
A pension plan's actuarial interest rate assumption is frequently an important consideration in defining investment strategies and asset mixes. That the actuarial rate has absolutely no financial meaning or investment significance does not appear to be widely appreciated in the investment community. The rate's only usefulness is a relatively limited decision variable for defining the plan's funding schedule.
Suggested Citation: Suggested Citation
Michaud, Richard O., The Actuarial Interest Rate as an Investment Objective (September 13, 1979). Bache, 1979, Available at SSRN: https://ssrn.com/abstract=2417341
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