Three-quarters of hybrid scheme trustees spend more time on their defined benefit offerings than defined contribution, sparking concerns that they are failing to respond to the shift to DC.
The London Borough of Bromley Pension Fund is considering a 10 per cent allocation to illiquid assets to provide greater returns and inflation linkage, in expectation of turning cash-flow negative within seven years.
Electronics retailer Dixons Carphone has seen close to 80 per cent of employees log in to its new benefits portal since it was launched in June, after it offered members incentives in a bid to drive engagement.
A proposed change to pensions accounting guidance around surpluses could lead to trustees having to renegotiate their financing arrangements with employers and shifting towards non-cash vehicles.
Defined benefit schemes are showing increased interest in illiquid alternatives as they hunt greater yield and diversification, but many lack sufficient resources and the confidence needed to execute such investments.
Interest rate rises could have a negative effect on covenant strength as some companies are forced to refinance at higher rates, advisers have said, and trustees should keep a watching brief to mitigate any resultant impact on their sponsors' ability to pay scheme contributions.
Comment & Analysis
Like Minds' Trevor Rutter lays out the essentials of messaging that will drive staff to save more into their workplace pension, in the latest edition of Technical Comment.
In this week's Informed Comment, Morgan Stanley's Joe McDonnell looks at the downsides of a binary growth v matching approach to derisking your scheme's investments, and suggests an alternative.
Talking head: The Pension Protection Fund's Sue Rivas says the organisation is on track to meet its target of providing three-quarters of scheme assessments within two years, and explains how it has sped up the process.
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).
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- How the PPF's contingent asset shift could affect your scheme
- Nest sizes up green technology as it sharpens ESG focus
- Unilever sees 26% opt-out from AE joiners on tax grounds