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richard

"Exotic" DB Investments

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Which of the following types of investments are not permitted under ERISA?

(Let us assume that the plan sponsor is sophisticated, has proper advice, the overall assets are properly diversified, and these "exotic investments" are used either to hedge DB plan liabilities or the other DB plan assets.)

Buying stock (or index) options

Selling covered stock options

Buying (or selling) interest rate options

Buying (or selling) interest rate futures

Buying (or selling) commodity options

Buying (or selling) commodity futures

Buying (or selling) foreign exchange options

Buying (or selling) foreign exchange futures

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Guest ESOPwizard

If the pension plan can't afford to pay $300+ per hour

for some expert advice, it can't afford to make those

investments.

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