Making the right asset allocation decision is critical if pension funds are to generate sufficient returns to meet their liabilities. A recent analysis by GlobalSWF indicates that US public pension funds are only 75% funded and face a $1.3 trillion shortfall. Other public pension plans, such as the Universities Superannuation Scheme (USS) in the UK, are also suffering shortfalls. Figures from the latter’s last annual report indicates it is only 84% funded. This shortfall has created a challenge for USS, which subsequently presented scenarios requiring an increase in employee/employer contributions from just over 30% to between 42% and 56%. This