Defined terms for the annuity market and lifetime income landscape.
Investment mandate in the PE-insurance context is the strategic direction an insurance carrier's controlling owner gives to the management of the general account, including target asset allocation, yield objectives, and the use of affiliated investment managers.
Investment menu design is the fiduciary process by which a defined contribution plan sponsor and its designated fiduciaries select, structure, and monitor the set of investment options offered to participants, including the default and the options for participants who make affirmative elections.
An investment policy statement is a written document adopted by a plan's fiduciaries that sets out the plan's investment objectives, the criteria used to select and monitor plan investments, and the procedures the fiduciaries will follow in exercising their investment-related duties.
Investment yield is the rate of return earned on the assets in an insurance carrier's general account over a stated period, net of investment expenses, from which the carrier credits contract owners, funds reserves, and retains its economic margin.
