PT  - JOURNAL ARTICLE
AU  - Sanjiv Das
AU  - Seoyoung Kim
AU  - Meir Statman
ED  - Mack, Barbara J.
TI  - Practical Applications of Coming Up Short: <em>Managing Underfunded Portfolios in an LDI-ES Framework</em>
AID  - 10.3905/pa.2015.3.1.108
DP  - 2015 Jul 31
TA  - Practical Applications
PG  - 1--4
VI  - 3
IP  - 1
4099  - https://pm-research.com/content/3/1/1.4.short
4100  - https://pm-research.com/content/3/1/1.4.full
AB  - Coming Up Short: Managing Underfunded Portfolios in an LDI-ES Framework Sanjiv Das Seoyoung Kim Meir Statman Drawing on observations from behavioral portfolio theory, Liability Directed Investing-Expected Shortfall (LDI-ES) focuses on effective use of portfolio rebalancing to maximize value, while minimizing expected shortfall. In this report, Seoyoung Kim describe how he and his co-authors examine four approaches to underfunded portfolio situation.The source article in The Journal of Portfolio Management ’s Fall 2014 issue provides critical commentary on the value of rebalancing, cash infusions and other adjustments to the targets and time lines related to meeting the liabilities of a fund. In addition to the risks of shortfall and underfunding, portfolio managers must also factor interest rate and inflation risk into their projections.