Pension Funds Insider

Pension Funds Insider brings the latest pensions news and industry insights; from investment and governance updates to new mandate appointments and pensions regulatory information.

Risk Management

Image for Fertile terrain for pension scheme de-risking

Fertile terrain for pension scheme de-risking

16 February 2017

Costas Yiasoumi expects a bumper year for bulk annuity de-risking and says preparation can help schemes achieve their risk management objectives

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Image for Lifetime ISA is risky, says PTL

Lifetime ISA is risky, says PTL

03 February 2017

The Government is overlooking risks to its new Lifetime ISA, according to a leading independent trustee and governance service provider.

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Image for Brexit leading to pension schemes transferring overseas

Brexit leading to pension schemes transferring overseas

12 January 2017

Increasing numbers of UK final salary pension schemes are being transferred into overseas schemes, in anticipation of the triggering of Article 50.

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Image for 2016 in reflection: solvency, sovereignty and solutions.

2016 in reflection: solvency, sovereignty and solutions.

20 December 2016

Frankie Borrell reviews developments in the pension risk transfer market throughout 2016.

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Image for One million DB pension risks transferred to insurers in 'quiet revolution'

One million DB pension risks transferred to insurers in 'quiet revolution'

15 December 2016

UK company pension schemes have transferred the defined benefit (DB) pension risks of more than one million people to insurers, according to research by pension consultants LCP.

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Image for European pensions plans warn of post-Brexit risk

European pensions plans warn of post-Brexit risk

02 December 2016

European pension plans are overwhelmingly negative about the impact of Britain's decision to leave the European Union, according to new report.

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Image for Pension scheme inflation hedging increased

Pension scheme inflation hedging increased

21 November 2016

Inflation hedging by pension schemes increased by 11% in the third quarter of 2016, according to BMO Global Asset Management's latest survey.

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Image for HSBC adopts new climate change risk fund

HSBC adopts new climate change risk fund

10 November 2016

Legal & General Investment Management (LGIM) has launched a new fund that addresses investment risks associated with climate change.

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Image for UK pension deficits reach an all-time high

UK pension deficits reach an all-time high

16 September 2016

Research shows that during August pension deficits have grown by £100bn

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Image for China Logistics – Riding the Tide of Economic Rebalancing and the Internet Economy

China Logistics – Riding the Tide of Economic Rebalancing and the Internet Economy

23 August 2016

LaSalle believes that the strong fundamentals and structural changes that are underway in China have the potential to translate into a favourable risk-adjusted return profile for opportunistic investing in the logistics sector.

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Image for DB deficit hits £1trillion

DB deficit hits £1trillion

18 August 2016

The combined deficit of UK defined benefit (DB) schemes has hit £1trillion, according to pensions consultant Hymans Robertson.

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Image for Less pensions guidance, more advice please!

Less pensions guidance, more advice please!

20 July 2016

People are largely in favour of pension freedoms but just over a year in, we are already seeing people achieving poor outcomes and being targeted by scammers.

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Image for Could BHS be the tip of the iceberg for the pensions lifeboat?

Could BHS be the tip of the iceberg for the pensions lifeboat?

06 May 2016

The failure of BHS raises big questions about what happens to those schemes that are guaranteed to fail.

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Image for Calling time on the weakest covenants

Calling time on the weakest covenants

14 April 2016

The increasing focus on covenant strength is occurring at a time when solvency levels have been falling for those that have not hedged interest rates. This is leading to a significant minority of situations where the trustees no longer believe they will be able to pay full benefits. What can be done in such circumstances?

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Image for Emerging markets: where do we go from here?

Emerging markets: where do we go from here?

08 April 2016

It has been a difficult few years for emerging markets. Having been beset by challenges – from a rise in US interest rates to low commodity prices and slower economic growth – many investors are asking where we go from here. While the asset class faces headwinds, the long-term case is strong and intact: it remains a broad and diverse universe, currently at a potentially attractive entry point for long-term investors in both equities and bonds.

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Image for The search for secure income

The search for secure income

08 April 2016

The uncertain outlook for the global economy has raised the prospect that core interest rates might stay lower for longer. Yields on investment-grade debt are subdued, or even negative, and could stay that way for some time. One possible investment alternative is to explore the opportunities offered by dividend-growing stocks; their ability to offer secure income combined with lower volatility is attractive over the long term.

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Image for Pension Insights – Generating income in a de-risking portfolio

Pension Insights – Generating income in a de-risking portfolio

18 March 2016

In this paper we assess how pension scheme trustees can achieve a positive near term cash flow as schemes de-risk and near term liabilities fall due.

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Image for Are you exposing your DC members to sequencing risk?

Are you exposing your DC members to sequencing risk?

06 November 2015

Helping members achieve the best retirement outcomes under the new pension freedoms remains a major challenge for most DC schemes. Many of the 'one size fits all' flexi-access solutions that are currently being touted in the market will fail many DC members and potentially increase the risk of 'sequencing risk'.

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Image for Assessing Value-for-Money in Annuities

Assessing Value-for-Money in Annuities

29 October 2015

Bulk annuities are increasingly being considered as an asset class to replace other investment holdings. Pension funds can improve their risk-reward trade-offs if they can replace gilts with annuities priced at an implied return better than "gilts less 40bp to 60bp". Transactions have been offering pricing levels better than this.

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Image for Achieving certainty of cost at buy-out

Achieving certainty of cost at buy-out

31 July 2015

Certainty of cost at the point of insuring is usually a key aim for trustees and their sponsoring companies. The company in particular, may be putting in a significant amount of money to insure the liabilities and usually wants to be as sure as possible that there isn't going to be the unwelcome surprise of another funding requirement to complete the wind-up. This article looks at insuring the benefit and data risks to achieve that certainty.

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