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.
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.
DC plans should consider adding multi-asset credit strategies to their default strategies
Many UK defined benefit (DB) pension funds are well along on their de-risking journey. What lies ahead now is relatively unexplored territory. Here we set out things to consider in building a runoff investment strategy.
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.
We further discuss how institutional investors can protect their portfolios from late cycle headwinds and rising volatility so that they can be positioned for long-term success.
The US recovery is now the longest on record. Nobody knows exactly how much longer this expansion will last.
CIO Perspectives: Healthcare investment approaches and enterprise-level considerations