State Street’s Andy Todd examines why consolidation of defined benefit schemes has not taken off in the private sector, and argues that cost should not be the only motivation for asset pooling.
Liquidity risk is here to stay
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June 5, 2017
From the blog: Market liquidity is reducing. It's been an issue for a while, and it is only going to intensify. As such, it holds serious ramifications for investors globally.
The bread and butter asset class for a pension fund’s core portfolio holding is often fixed income.
But low interest rates have led to a notable search for fixed income yield, and so have heightened competition in this asset class.
LGPS funds tackle a range of challenges head on
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January 31, 2017
From the blog: More than half of global public pension funds with assets under management of $10bn (£8bn) or more feel under pressure to cut costs.
This is particularly pertinent to the UK market, where central government is promoting the consolidation of assets within the Local Government Pension Scheme into eight distinct asset pools.
The good news is that various contributing factors, including this pooling initiative, are allowing funds to become stronger than ever before and meet challenges head on with insight and proactivity.