Allocating to multi-asset credit managers, who seek out alpha opportunities without constraint, can improve risk-adjusted returns for the average DB plan.
This quarterly 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.
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?
UK pension plans concerned about how to invest in a volatile, late cycle environment may want to consider two practices: continue effective rebalancing and don’t postpone further duration hedging in anticipation of rising rates.
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.
In the wake of the Global Financial Crisis, all eyes are on dynamic, responsive funding strategies that can deliver long-term goals in a risk-aware way.
Using our 2019 Long-Term Capital Markets Assumptions and our estimate of the average current pension profile, we projected forward the buyout position of the average UK pension scheme.
With global recessionary risks rising, we provide a framework to help UK pensions prepare for near-term risks that could challenge the fulfillment of their sponsor covenants.