PHOENIX – Responding to a report that downplayed the importance of unfunded public pension liabilities, investors said they value the funded-liability metric and see pensions in general as a significant problem.

Portfolio managers told The Bond Buyer that while an issuer's pension fund's actuarially unfunded liability isn't the only way they think about pension risk, it can weigh heavily in their investment decisions. That thinking is in contrast to that in a University of California report last month that downplayed the importance of the funding ratio under what it characterized as flawed accounting rules.

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