Category: GK

Live long & prosper: pensions schemes, longevity risk & investment strategy

June 19, 2014

Reading Time: 6 minutesIntuitively we know that one of the largest single risks facing a defined-benefit pension fund is longevity – that of its members living longer. Its now well known of course that this risk has repeatedly hurt schemes in the past, as past predictions on the path of longevity improvements have proven to be incorrect.   … More Live long & prosper: pensions schemes, longevity risk & investment strategy

How do institutional investors use options ?

April 29, 2014

Reading Time: 2 minutesI’ve had the pleasure of speaking at the Global Derivatives conference in Amsterdam in May 2014, on the ways in which institutional investors are users of options. Here’s a quick look at what I covered Firstly, I’ll look at the different groups of institutional investors including insurance companies, defined benefit and defined contribution pension funds, private wealth … More How do institutional investors use options ?

What David Moyes can teach us about fund managers

April 23, 2014

Reading Time: 2 minutes  Another week, another expensive and previously high-performing manager is sacked after losing the faith of his employers following a period of under performance. So far so familiar, but am I talking about the Barclays Premiership or the world of UK pensions? And what parallels can we draw between the two? At Redington we believe successful fund … More What David Moyes can teach us about fund managers

A lot can happen in 5 years, the rear view mirror and the road ahead

April 20, 2014

Reading Time: 4 minutesWhen “Past performance is not necessarily a guide to the future” has never seemed more apt The rear view mirror It’s now been just over 5 years since equity markets hit their lows at the peak of the fallout from the banking/credit crises of 2008. A lot can happen in 5 years. This year’s crop of … More A lot can happen in 5 years, the rear view mirror and the road ahead

Liability Driven Investment: assets, strategies & innovation, a roundtable discussion

March 25, 2014

Reading Time: 6 minutesI recently had the pleasure of attending a roundtable discussion on Liability Driven Investing, hosted by Pensions Expert. the group covered the following four questions : How do you approach LDI with schemes that do not already have it in place? Once an LDI programme is in place, does it get more sophisticated as it … More Liability Driven Investment: assets, strategies & innovation, a roundtable discussion

What Lies Beneath: The hidden cost of pension fund equity risk

March 24, 2014

Reading Time: 4 minutesRead the full paper here update, this paper was quoted in a front page article in Financial News in the weeks of 7th April 2014. The online version can be found here A recent change to the banking regulatory landscape brought pension risk to the fore… On 29th November 2013, following a consultation, the Prudential … More What Lies Beneath: The hidden cost of pension fund equity risk

What is the purpose of a pension scheme?

January 29, 2014

Reading Time: 3 minutesThis was written as a response to this post on mallowstreet.com, which itself was a summary of a presentation given at the annual TUC pensions conference which made several points including advocating pension schemes reject Liability Drive Investing as a “distraction”, and focus instead on future income streams. The blog also questioned the relevance of … More What is the purpose of a pension scheme?

PPF 7800 Index funding level increases 15% in 2013

January 15, 2014

Reading Time: 2 minutesThe December update of the PPF’s 7800 index of pension fund assets and liabilities revealed a sharp increase in funded position for schemes in aggregate over the course of 2013, from a funding level of 83% at the end of 2012, to 98% at the end of 2013. These levels compare to the low point of … More PPF 7800 Index funding level increases 15% in 2013