Just to confirm:
Open plan - likely some combo of nominal bonds, real bonds, and equities to hedge
Closed plan - active lives can continue to grow benefits via wage increases, so you still could use nominal, real, and equities
Frozen plan - no more wage increase benefit even for current employees, so either nominal and/or real depending on existence of inflation-linkage for benefits.
Does this sound right? Namely you may need all 3 asset types to hedge open and closed plans, but just the bonds for frozen?
And does it sound right that if you have an open plan and close it, nothing changes from a hedge perspective? Since you never hedge future participants, the closing of the plan does not change anything
Open plan - likely some combo of nominal bonds, real bonds, and equities to hedge
Closed plan - active lives can continue to grow benefits via wage increases, so you still could use nominal, real, and equities
Frozen plan - no more wage increase benefit even for current employees, so either nominal and/or real depending on existence of inflation-linkage for benefits.
Does this sound right? Namely you may need all 3 asset types to hedge open and closed plans, but just the bonds for frozen?
And does it sound right that if you have an open plan and close it, nothing changes from a hedge perspective? Since you never hedge future participants, the closing of the plan does not change anything