All liquidity risk articles
-
NewsFCA to allow retail investors and DC self-select funds access to 'higher-risk' LTAFs
The city watchdog is allowing mass market retail investors, self select DC pension schemes and self-invested personal pensions (SIPPs) to access long term asset funds (LTAFs) but the move has already been questioned by the investment industry.
-
NewsBigger LDI collateral buffers will increase sponsor reliance, MPs told
The Work and Pensions Committee has been reminded of the trade-off between bigger collateral buffers and investment returns, with one chief executive warning that buffers of 400 basis points would force some schemes to “pare back their growth ambitions” and increase their reliance on sponsor contributions.
-
NewsBoE acted to prevent a gilt market ‘fire sale’, MPs told
The Bank of England had no choice but to intervene in the gilt markets, having received signals from pension funds that a “fire sale” may occur, BoE deputy governor for financial stability Sir Jon Cunliffe has told MPs.
-
NewsCould gilt market shock push schemes towards insurers over LDI?
The market shock prompted by the government’s “mini” Budget could see a shift away from liability-driven investment strategies and toward insurance deals, experts have suggested.
-
NewsTPR: ‘Keep asking questions’ about investment strategies
On the go: The current economic malaise, and especially the impact on liability-driven investments now interest rates are rising, proves it is especially important that trustees continue to ask questions about their investment strategies, even if they seem “silly”, says Fred Berry, the Pensions Regulator’s lead investment consultant.
-
NewsAon and Mercer issue ‘urgent’ call to action over LDI strategies
Consultancies Aon and Mercer have urged pension schemes, trustees and sponsors to prepare to intervene to protect their schemes, as bond market volatility puts strain on liability-driven investment strategies.
-
NewsTPR funding statement flags uncertainty impact for valuations
High levels of uncertainty surrounding inflation, interest rates, mortality, energy prices and economic growth will put additional pressure on trustees completing their tranche 17 valuations this year, according to the Pensions Regulator’s annual funding statement.
-
NewsBuck launches ‘gap analysis’ governance solution
On the go: Buck has launched a new “gap analysis” governance tool designed to help schemes navigate the Pensions Regulator’s forthcoming combined code of practice.
-
NewsAlternative assets could give DC higher returns with no extra risk
Alternative assets could present defined contribution schemes with a means to increase value for members without taking on any extra risk, according to a new report from the Pensions Policy Institute.
-
News2022 set to be a bumper year for bulk annuities
On the go: 2022 is set to be a busy year when it comes to derisking and could break the record for the largest transaction, according to a report from LCP.
-
NewsSolvency II reform could unlock ‘tens of billions’ in investments
On the go: The reform of the EU’s Solvency II requirements would unlock a “Brexit bonus” amounting to “tens of billions” of pounds in long-term infrastructure investment, according to a new report from the Pension Insurance Corporation.
-
NewsBT targets cash flow-matched strategy by 2034 with IRM
The BT Pension Scheme is using integrated risk management to assess its appropriate level of risk and pace its transition from equities to a fully cash flow-matched strategy by 2034.
-
NewsBudget 2021: Sunak announces further changes to DC charge cap
Chancellor of the exchequer Rishi Sunak announced on Wednesday that the government will consult “within the next month” on further changes to the charge cap intended to encourage more investment in illiquid assets by defined contribution schemes. But experts have said this is “missing the point”.
-
NewsTapping DC schemes for growth fund raises industry concern
Chancellor Rishi Sunak is reportedly hoping to draft defined contribution schemes into propping up the government’s proposed Long-Term Assets Fund, though experts have raised concerns about its practicality.
-
NewsTPR: Trustees must ‘improve their understanding’ of liquidity risks
On the go: Trustees need to improve their understanding of liquidity risks and do more to monitor and mitigate against them, the Pensions Regulator has said.
-
NewsProfit warnings down but half of DB sponsors remain on life support
Profit warnings from listed companies with defined benefit schemes have dropped by two-thirds in the past six months, but more than half remain in the insolvency “danger zone”, according to figures from EY.
-
NewsUK pension schemes under-allocated to Chinese equities
UK pension schemes’ allocation to China as a percentage of global equities is generally inadequate, but there is no consensus as to how big the allocation should be, according to participants at Camradata’s Investing in China roundtable.
-
News
How schemes can navigate the post-Covid recovery
Defined benefit schemes should use the post-Covid recovery to conduct a thorough postmortem of the effects of 2020’s events on their portfolios and strategies, according to Barnett Waddingham.
-
NewsWeekly roundup: It’s not easy being Green
Welcome to Pensions Expert’s roundup of a week in which we bade farewell to a few of the high street’s better-known names, and the Pension Protection Fund brightened everyone’s mood with its new doomsday scenario.
-
News
PPF reserves could be ‘wiped out’ by one or two big claims
Pension Protection Fund chief executive Oliver Morley has warned that the lifeboat’s reserves could be wiped out by just a few large claims, while downplaying the risk of a post-Covid run of small-scheme claims.