Nuclear Decommissioning Trusts
Unique requirements, decades of experience
Callan has extensive experience providing services to nuclear decommissioning trust (NDT) sponsors. Issues of asset allocation and manager structure are not as clear-cut as they might be elsewhere due to the complex and evolving circumstances facing the typical NDT.
Our comprehensive, proprietary simulation model is able to evaluate the consequences of various investment strategies including static/dynamic asset allocation policies, active versus passive management, varying turnover assumptions and tax rates, rebalancing ranges and frequencies, differing amortization methodologies for rate calculations, simulated rate-hearings, and more.
Research and investment policy planning
We work with you to understand your investment objectives in order to establish a sound fiduciary process for decision-making. The result should be a blueprint for fund management at both the broad asset class and individual manager level, with the ultimate goal of reducing the volatility of your funded status and contributions while limiting the likelihood of a future deficit.
Manager research
We put into practice all of the policies set in place during the planning phase, seeking tax-aware, alpha-generating active management where appropriate to complement low-turnover, cost-effective passive or quasi-passive strategies. Our search considerations are customized and depend on a variety of qualitative and quantitative considerations, built into our proprietary database.
Implementation and monitoring
We have created a structured framework for consistently implementing NDT programs, which includes reviewing your fund's asset allocation at least every year to determine any adjustments required over time. Investment managers and their performance are also closely monitored through time.
Explore the results of our 2023 Nuclear Decommissioning Funding Study here.
Operating nuclear reactors in the U.S.
Years Callan has served NDT clients
Dedicated research specialists devoted to asset allocation and manager research
How we work with you.
Step 1
Strategic planning & asset allocation
Step 2
Policy development & risk assessment
Step 3
Manager structure
Step 4
Manager evaluation & selection
Step 5
Portfolio monitoring & ongoing education