Diageo Pension Scheme has switched 5 per cent of its assets from its growth to its matching portfolio after hitting a derisking trigger, tipping its investment balance towards holdings that track liabilities.
Schemes have been urged to move quickly to prepare for forthcoming changes to pension tax legislation, with the new ‘uncrystallised funds pension lump sum’ expected to prove popular among members.
Industry figures have called for more transparency around charges from asset managers after Railpen Investments said upfront fees were as little as a fifth of its total fees paid.
Saul's outgoing chief executive has predicted that its use of convertible bonds to dampen pension fund volatility could catch on at other schemes, but some advisers remain sceptical of the benefits offered.
The Royal Mail Pension Plan has extended liability hedging in its portfolio by substantially boosting its use of swaps and gilt repurchase agreements, as it seeks to reduce risk in the scheme.
Independent governance committees could be hampered by a shortage of experienced professionals as contract-based scheme providers race to set up bodies by April 2015, with industry figures suggesting sharing personnel.
Comment & Analysis
Any other business: There may indeed be such a thing as too many tweets. Last week, UK police forces revealed there had been investigations into 828 breaches of social media guidelines, with many ending the individual’s career in the force.
Nabarro's Anne-Marie Winton argues that without a savings reality check, auto-enrolment could simply become an employer tax with little benefit in staff retention, in the latest edition of Informed Comment.
In the latest edition of Technical Comment, Barclays' Lydia Fearn lays out the key questions and steps that schemes need to be asking to make sure they are ready to implement the guidance guarantee.
Video: Redington's Aniket Das and Fulcrum Asset Management's Suhail Shaikh discuss scheme interest in smart beta multi-asset investments and the pros and cons of the strategy as a hedge fund alternative (5:38).
Advertisement feature: JP Morgan Asset Management's Lisa Coleman discusses the challenges facing credit managers and the benefits of a multi-sector approach in this video (8:04).
Video: Simon Howard, chief executive at sustainable investment trade body UKSIF, and Ralph McClelland, senior associate at Sackers, discuss the Law Commission's report on fiduciary duty, including the impact of its distinction between financial and non-financial factors (5:37).
The DC Debate
- Bromley mulls 10% illiquids allocation as cash flow worsens
- Scheme managers raise doubts on joint LGPS governance boards
- Are iPads harming or helping trustee boards? The cases for and against tablet governance
- Xerox to protect repayment power amid legal uncertainty
- Saul: convertibles could spread as schemes look to reduce volatility