Covid-19: Impact on corporate pension fund allocations
We consider how pension funds may position portfolios for the new market cycle to repair the damage caused to funding by Covid-19
Pension Pulse
Sorca Kelly-Scholte
Welcome to Pension Pulse. This publication from our Pension Solutions and Advisory Group provides UK pension funds with timely updates on market trends, funding levels and the latest industry and product developments.
We consider how pension funds may position portfolios for the new market cycle to repair the damage caused to funding by Covid-19
Our analysis demonstrates how sticking to a regular portfolio rebalancing regime may still add significant long-term value, even in times of market volatility.
Even fairly modest moves by UK pension funds into buy and maintain credit could create intense competition for assets in an already tightly held market.
Pension funds don’t face the many constraints that make buy and maintain strategies so well-suited to insurers.
UK pension funds are globalising their real estate holdings, taking advantage of diversification benefits and greater scale of investment opportunities.
UK pension plans concerned about how to invest in a volatile, late cycle environment may want to consider these two practices.
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