Pensions Management - the magazine for pension & investment industry professionals
Feature » Investment strategy
Don’t let the tail wag the dog

UK pension funds have witnessed sterling returns of 0.96% for global equities in the past 10 years (to March 31, 2010) with high levels of annual volatility. This includes two protracted periods of equity market weakness, the first driven by the bursting of the dot-com bubble and the second by the credit crisis. As in 2001/2002 investors have questioned the roles of active management and equities. With increasing longevity, a sharper focus on the sponsor covenant and tighter regulation, this questioning is easy to understand. Nevertheless, equities have delivered positive returns during bull market phases over the past decade, suggesting UK pension funds need to be more nimble in their asset allocation and more sophisticated in how they approach total return risk management.

Pension funds exploring foreign exchange are both reaping rewards and shaking up the way the markets work

A new world

Currency is a non-traditional field for pension funds, but those taking part are revitalising the market.

Companies will offer broad ‘pensions plus’ plans including debt management and general savings

Wrapping it up
Several companies are intending to launch holistic savings offerings in the next 12 months, in hopes of invigorating the market after defined benefit schemes

Think about it...
As the advisory community is drawn deeper into a more highly regulated and professional environment, Pádraig Floyd looks at the role of discretionary fund management

Closing the doors to Europe

The hedge fund industry is beginning to recover from a tumultuous two years, but the ensuing regulatory directive coming in from Europe could put added pressure on managers at an already difficult time

In the process of derisking, complex hedges can bring unforeseen threats

Hidden dangers beneath the surface

Improving mortality rates pose a fiscal threat to schemes and longevity swaps are one way to hedge against these risks – but their complexity can bring further problems

Make the call

When and whether to hedge against liability risk is a decision that demands great consideration

Sold on safety

The government’s quantitative easing initiative has seen in excess of £175bn pumped into the UK economy, but what overall effect has this had on the position of gilts?

Cash in on the continent

Investors are advised how to get the best from European markets in such spurious times in value terms

Good value strengthens the yield

With volatility proving that no asset class is completely safe, many investors are recognising the potential of alternatives like high yield bonds, both as a generator of returns and as a diversifier

Is there light at the end of the tunnel?

With the markets braced for yet another turbulent year, PM takes a look at how the key asset classes might fare

Equities emerge from the East

Far from resting on its laurels, Global Investment House is taking full advantage of the market downturn to grow and develop a powerful private equity business in the Gulf region

The proof is in the eating

New balanced funds offer investors access to a wider array of asset classes than ever before, but it’s their single-manager approach that will most appeal to trustees

Exchange and outsmart

Times have changed in the institutional world, and equities still rule the roost. But how does currency fit into pension fund portfolios?

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