Allocating to multi-asset credit managers, who seek out alpha opportunities without constraint, can improve risk-adjusted returns for the average DB plan.
NEST announced today (15 May) that it has awarded a high yield bond mandate to J.P.Morgan Asset Management to further diversify members’ portfolios and offer attractive returns in an otherwise low-yielding fixed income environment.
DC plans should consider adding multi-asset credit strategies to their default strategies
Our summer 2019 edition looks at UK pension buy and maintain strategies, the globalisation of real estate holdings and the importance of timing when investing in a volatile, late cycle environment.
Are your private credit allocations positioned for uncertainty?
Caught our eye: UK pension buy and maintain strategies could bring demand pressure to sterling corporate bonds
In an already tightly held market for sterling corporate bonds, even modest moves by UK pension funds to adopt buy and maintain strategies could create stiff competition for these assets.
In recent years, defined contribution (DC) plans have often found it difficult to focus on investment as they have grappled with a series of legislative and regulatory changes.
An alternative risk premia strategy is itself more diversified than a diversified growth fund or an all-equity portfolio.
Pension funds don’t face the many constraints that make buy and maintain strategies so well-suited to insurers, and can make use of these freedoms when designing portfolios to meet the liability-aware investment needs of pension funds.