portfolio dedication

portfolio dedication definition - business

portfolio dedication

The synchronization of returns on an investment portfolio with known future liabilities. Portfolio dedication applies primarily to investment decisions by institutions such as pension funds and insurance companies. These institutions can estimate future liabilities fairly accurately, and then try to minimize the outlay to satisfy the liabilities. Also called dedication, matching.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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