InvestmentRSS

Synthetic equities see interest as schemes look for creative ways to derisk

Defined benefit schemes are showing interest in synthetic equity strategies in order to move cash from growth portfolios to liability-matching strategies in an effort to shore up funding levels.

LDI struggling to penetrate medium and smaller-sized schemes

Liability-driven investment strategies are struggling to gain ground outside larger schemes, with regulatory data indicating just one in 17 medium-sized plans have implemented hedging strategies.

Pension funds drive property surge as index linkage takes off

Schemes are looking towards property for further diversification, having expanded alternative property investments fivefold last year, as experts predict improved economic sentiment and a lack of development sites could stimulate rental growth.

Waltham Forest invests in impact bonds for diversified returns

Waltham Forest Pension fund has invested £20.8m in an impact investment fund as it seeks to diversify its returns and support UK-based social capital projects.

Experts call for smart beta credit to meet diversification demand

Alternative fixed income indices could be the next frontier in smart beta investing for pension schemes, industry experts have said, calling for a shift in focus away from equity strategies.

Greater intermediary fee transparency needed to assess value, experts urge

News analysis: Investment management and consultant fees need to be more transparent to allow schemes to more accurately measure whether they are getting value for money, industry figures have said.

LGPS schemes collaborate on infra to diversify returns

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Three local authority pension schemes have revealed their plans to invest in infrastructure collectively, as they look to reduce management costs and diversify their portfolios to protect against market falls.

Scheme derisking surge pushes gilt investment to further heights

Data analysis: Schemes ploughed £7.9bn into fixed income assets in the last quarter of 2013, data from the Office for National Statistics showed, as they accelerated derisking plans and diversified fixed income assets.

Solvency reform could boost cat bond value for schemes

Demand for insurance-linked securities such as catastrophe bonds has been rising even as yields have been decreasing, as consultants expect Solvency II to increase supply.

Experts question multi-asset suitability for younger savers

Data analysis: The rise of multi-asset funds in defined contribution schemes has fed criticism over whether these strategies are taking a sufficient level of investment risk for 20-somethings with a long-term savings horizon.

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