All volatility articles – Page 3
-
OpinionHow to navigate hypervolatility in equity markets
From the blog: We have been in an unusual economic situation for the past 10 years, ever since the end of the global financial crisis.
-
Features
Alternative risk premium funds fail to deliver on promises in testing 2018
Analysis: Pension schemes continue to pour assets into fast-growing alternative risk premium strategies, despite a torrid 2018 for returns and concerns over the diversification benefits delivered by the funds.
-
OpinionWhat is the global market outlook for 2019?
Markets started 2018 full of optimism. The US economy was putting in a stellar performance, buoyed by tax cuts that caused a surge in both growth and corporate earnings, while the unemployment rate hit an almost 50-year low.
-
Opinion
DC Debate Q3: Getting the right amount of risk in defaults
In the first instalment of this quarter's DC Debate, five experts dive into the appropriate amounts of risk and diversification for defined contribution members at various points in their savings journey.
-
OpinionChoose wisely – not all DGFs justify their fees
Diversified growth funds can be a liquid, low-governance way for smaller schemes to achieve asset diversification. However, their ability to add value from calling markets is questionable, and some funds waiting for a doomsday scenario are missing out on easy market returns.
-
OpinionOne year out, Brexit is still a major pensions risk
The UK’s decision to leave the European Union has significant implications for the pensions industry and will continue to do so long after the UK’s formal exit.
-
OpinionWill the return of volatility save active management?
You will have probably read that Warren Buffett recently cashed in his bet against hedge fund firm Protégé Partners.
-
News
Could DGFs deliver a better DC experience?
Analysis: The perceived wisdom of defined contribution investment had always been one that places an emphasis on simplicity.
-
OpinionHow to prepare for the next stock market crash
Who knows whether another stock market crash is days, months or years away? Trying to call the top or the bottom of a market with perfect timing is, in general, a futile exercise.
-
Opinion
How can DC schemes deliver value for money?
There are few more prolific terms overheard in the pensions industry than value for money, and far fewer that evade objective definition quite so comfortably.
-
OpinionWhich retirement option should your default strategy target?
While the question of what a default option should target is a valid one, it implies a couple of common misconceptions.
-
Opinion
How are DGFs being used in DC?
How are defined contribution schemes using diversified growth funds, and what roles do member engagement and cost constraints play? Naomi L’Estrange from 2020 Trustees, Shuntao Li from Barnett Waddingham, Neil McPherson from Capital Cranfield, Murray Taylor from JLT Employee Benefits, and Percival Stanion from Pictet Asset Management discuss DGFs in DC and the issue of fees.
-
FeaturesPearson moves away from hedge funds into DGFs
The pension plan of publishing giant Pearson Group has scrapped its hedge fund exposure and invested in diversified growth funds, in a bid to control investment risk and costs as the scheme nears self-sufficiency.
-
Features
Imperial Tobacco fund sharpens returns focus
The Imperial Tobacco Pension Fund has cut its exposure to shares and corporate bonds in favour of alternative asset classes, with a view to increasing the scheme’s sources of return and reducing reliance on equities.
-
NewsTrustees told to focus less on market volatility
From Brexit to Trump, the political events of 2016 added to market uncertainty throughout the year, but trustees should take care not to be too fixated on volatility.
-
FeaturesLuxfer Group ups DGFs in portfolio restructure
Global materials technology company Luxfer Group has restructured the growth portfolio of its defined benefit scheme to invest in diversified growth funds, as research has predicted continued demand for these strategies.
-
Features
Is there a place for smart beta in DC portfolios?
Are smart beta products suitable for default defined contribution funds, or are they too complex? Could reduced volatility address problems with DC saving? AQR’s Scott Richardson, Capital Cranfield’s Jonathan Reynolds, RPMI Railpen’s Steve Artingstall, SpenceJohnson’s Robert Holford and Xerox HR Services’ Simon Hill discuss.
-
Opinion
When things get hairy: Don’t overreact to President Trump
From the blog: Donald J Trump has been elected president of the US, sparking marked but short-lived market fluctuations and suggesting that you probably shouldn’t take investment advice from a pollster.
-
Opinion
Active management of passive funds – a viable strategy for DC?
Since the introduction of freedom and choice, value for money has been high on the agenda for defined contribution schemes. As trustees try to keep on top of costs, could an active asset allocation approach work for schemes with underlying passive funds?
-
OpinionHow to take some of the worry out of market volatility
Large falls in financial markets have the potential to seriously knock the confidence of defined contribution savers. A 2014 DC member survey, for example, underlined a troubling degree of aversion to sudden falls in pension savings.