The Weekly Wrap: October 18 edition

Private equity tries to crack $5.3tn US pension market

FTfm: Private equity firm Pantheon Ventures is bidding to become the first private equity manager to crack the US's $5.3tn (£3.3tn) defined contribution market with a fund of fund structure. It is designed as an investment sleeve of custom target-date funds, providing private equity exposure of 3-5 per cent for conservative allocation funds and 8 per cent for more aggressive, longer-dated funds.

Employers face changed pension landscape

FT: Banks may be being forced to hive off the pension obligations of their higher-risk division to limit taxpayer risk in the event of a bank failure. “This is to prevent pension debts of other group members falling on the ringfenced bank in the event that those other members fail, which could constitute a channel of financial contagion across the ringfence,” the Treasury said over the summer in an impact assessment paper on the banking reform bill.

Pension schemes 'complacent' about fraud risk

FT: Nearly a fifth of pension schemes are not actively considering fraud risks, potentially exposing members to losses, according to a survey by pension consultants Baker Tilly. Just over half of the schemes surveyed had not tested internal fraud controls for more than a year.

London tops commercial property investors' list

FT: London has become the destination of choice for commercial property investors – which include pension funds – from Asia, the Middle East and the US. “London's credentials as a safe haven for investment means that there is still strong demand from overseas,” said Liz Peace, chief executive of the British Property Federation.

Swiss schemes switch to insurance-linked securities

MandateWire: Swiss pension funds have replaced domestic bonds with insurance-linked securities in a bid to diversify fixed income portfolios. according to data from MandateWire. Almost 67 per cent of ILS investors in 2013 were from Switzerland.        

Most read on pensionsweek.com     

Xerox underlines member responsibility in DC plan
Why schemes should not exclude investment in payday lenders
Defence schemes 'future-proof' MNT governance
MNOPF increases contributions to secure benefits
BA scheme inserts murder exemption into rules

This week's social media comment

In response to Robert Peston's presentation at the National Association of Pension Funds, Russ Kamp tweeted the following: 

@pensionsweekhttps://twitter.com/pensionsweek">@pensionsweek> @Pestonhttps://twitter.com/Peston">@Peston> Austerity hasn't worked in Europe and it won't. Deficit spending is needed to create more jobs and demand for goods.

— Russ Kamp (@RussKamp) October 16, 2013