The proportion of pension schemes with multi-asset fund exposure has risen to 83 per cent, up from 70 per cent just six months ago, as schemes look to control volatility and mitigate macroeconomic risk.
BP Pension Scheme has formalised a derisking framework with its sponsor to dampen covenant, asset value and investment risks, delegates at the National Association of Pension Funds’ investment conference 2014 heard last week.
Data analysis: Nearly two-thirds of workers heard about auto-enrolment through the media rather than from their workplace, sparking concerns that employers are not playing a strong enough role in communicating the reform.
Schemes may want to consider holding off adjusting their spousal benefits, after a tribunal overturned a previous ruling that deemed entitlements should take into account membership pre-dating the Civil Partnership Act 2004.
NAPF Investment Conference 2014: Collective defined contribution could be a way forward for schemes trying to "give members what they want" and avoid burdening them with decisions, said Diageo's director of pensions.
NAPF Investment Conference 2014: The John Lewis Partnership's DC scheme will not consider offering income guarantees to its members, unless a legislative framework is put in place to deliver them.
Comment & Analysis
PMI president Paul Couchman takes aim at the regulatory burden of the new defined contribution code on lay trustees in particular, and argues it is "highly likely" more than one in four schemes are non-compliant, in this week's Informed Comment.
As more defined benefit schemes follow a derisking plan towards their end point, monitoring and managing risk grows ever more important.
How to achieve the right asset mix was the perennial question dominating last week’s NAPF conference in Edinburgh. So where should trustees focus in order to meet their current and future liabilities?
Video: Sarah Smart, chair of the trustee board at the Pensions Trust, says its fiduciary management set-up has outperformed its target at lower risk than budgeted for, and explains how the scheme monitors this arrangement (5:56).
Video: In this first edition of The Review, Insight's Colm McDonagh and Towers Watson's Ed Britton discuss the impact of recent emerging market volatility on pension funds' sovereign debt holdings, and assess value in the market (5:43).
Video: London Pensions Fund Authority's Susan Martin explains its plans to collaborate with other organisations and schemes to up its allocation to infrastructure and private equity, in this edition of Policymakers and Decision-makers (5:08).