InvestmentRSS

Morgan Advanced Materials makes £67mn advance contribution

News on the go

On the go: Manufacturing company Morgan Advanced Materials has agreed to make an accelerated contribution of £67mn to its UK defined benefit pension schemes, as part of a deal that will see the trustees increase inflation and interest rate hedging levels.

‘Lower leverage is here to stay’: industry responds to LDI inquiry

Getty Images

The use of leverage in liability-driven investments should be reassessed, according to respondents to a Work and Pensions Committee inquiry.

FCA: Liquidity buffers are a ‘necessary but partial solution’

News on the go

On the go: The Financial Conduct Authority has urged managers of liability-driven investment funds to learn the lessons of the autumn liquidity crisis, claiming that liquidity buffers represent only part of the solution to future volatility.

TPR investment lead mulls role of ‘groupthink’ in LDI crisis

Volatility

The Pensions Regulator’s lead investment consultant, Fred Berry, has suggested that industry ‘groupthink’ may have played a part in creating the conditions for the liquidity crisis that engulfed defined benefit pension schemes in the autumn.

TPR expects improved LDI liquidity buffers to be maintained

Chris Ratcliffe/Bloomberg

The Pensions Regulator has set out its expectation that liquidity buffers be maintained across pooled and leveraged liability-driven investment mandates, going beyond the demands of Irish and Luxembourgish regulators.

LDI pooled funds determined Bank of England intervention

Maja Smiejkowska/Reuters

The Bank of England’s bond market intervention was determined by the lack of ability of liability-driven investment pooled funds to receive the liquidity needed from schemes to rebalance in a short period of time, Andrew Bailey has revealed.

PPF: True impact of LDI crisis is still unknown

Dreamstime

The true impact of the liability-driven investment turmoil will only be known when schemes start publishing their annual accounts, especially for a group of pension funds that were not able to meet collateral calls and lost their hedges, the Pension Protection Fund’s head of LDI and credit has warned.

Inflation is main concern for DB trustees and sponsors

News on the go

On the go: Inflation and monetary policy represent the key concern for three-quarters (74 per cent) of pension trustees and their sponsors over the next six months.

Value over cost emphasised in new DC illiquid investment guides

News on the go

On the go: Defined contribution scheme trustees are being encouraged to shift their focus on illiquid investments from cost to value, in a series of guides published by the Productive Finance Working Group.

Experts estimate £500bn in assets are ‘missing’ after LDI crisis

Olivierl/Dreamstime

Around £500bn in pension scheme assets are “missing somewhere” as a result of the liability-driven investment crisis, the Work and Pensions Committee has been told, with experts also questioning the role of leverage in these funds and the need for more guidance from regulators.