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Bridge over ocean
1 July 1995 Financial Analysts Journal Volume 51, Issue 4

The Plan Sponsor's Goal

  1. Fischer Black

For a given public or private pension plan benefit structure and for a given funding level, a plan sponsor may want to choose an investment strategy to minimize the present value of future contributions to the plan. This goal is consistent with the way most sponsors make decisions on investment projects generally and in the interests of the plan participants.

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