Incorporating Environmental, Social & Governance
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.
What investors should consider
Allocating to multi-asset credit managers, who seek out alpha opportunities without constraint, can improve risk-adjusted returns for the average DB plan.
UK pension funds are moving to globalise their real estate holdings, taking advantage of increased 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 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.