All Investment articles – Page 17
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NewsMPs to question DB schemes’ use of LDI in new inquiry
On the go: The Work and Pensions Committee has launched an inquiry into the regulation and governance of defined benefit schemes with liability-driven investments.
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NewsIFoA withholds ‘risk alert’ over LDI
On the go: The Institute and Faculty of Actuaries has opted not to issue a “risk alert” over liability-driven investments, in response to the liquidity crisis faced by many defined benefit schemes that unfolded after the September “mini” Budget.
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NewsUSS weighs up costs and benefits of outsourcing investments
Despite hiring an external asset manager to run its climate transition index earlier this year, the £90.8bn Universities Superannuation Scheme is keen to cut investment management costs by developing its in-house investment capabilities.
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NewsTPR to prosecute former trustees over ‘illegal’ pension loans
Two former trustees will appear before court as part of a prosecution brought by the Pensions Regulator over allegations that the pair made illegal loans and investments.
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NewsEssex launches global equity sustainable transition fund
On the go: The circa £9.3bn Essex County Council Pension Fund has partnered with UBS Asset Management and Hymans Robertson to launch the UBS Life Global Equity Sustainable Transition Fund.
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NewsBoE acted to prevent a gilt market ‘fire sale’, MPs told
The Bank of England had no choice but to intervene in the gilt markets, having received signals from pension funds that a “fire sale” may occur, BoE deputy governor for financial stability Sir Jon Cunliffe has told MPs.
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NewsMini-Budget blows £11bn hole in BT Pension Scheme
On the go: The £46.9bn BT Pension Scheme sustained aa £11bn hit to its assets following the government’s September “mini” Budget, before the Bank of England intervened to stabilise gilt markets.
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NewsTruss commits to pensions triple lock as inflation hits 10.1%
Prime minister Liz Truss has confirmed that the triple lock will be maintained, even as September’s figures showed inflation rising to 10.1 per cent.
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NewsLDI funds prepared for ‘much larger increases in yields than before’
Liability-driven investment funds have built sufficient capital to shield themselves from the impact of further spikes in gilt yields, the Bank of England has said.
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NewsRogue trustees to pay £880,000 redress bill
Trustees of the BWFS Occupational Pension Scheme were found to have committed “multiple breaches of trust and many acts of maladministration” by the Pensions Ombudsman.
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NewsGilt yields drop while schemes plan for life after mini-Budget U-turn
Pension schemes are reviewing their asset allocations and resilience to future market shocks, as gilt yields fell in response to the abandonment of most measures presented in the September “mini” Budget.
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NewsKwarteng out as LDI derivative losses set to hit £149bn
Market moves: Liz Truss sacks Kwasi Kwarteng, with Jeremy Hunt installed as chancellor; JPMorgan estimates market-to-market losses from liability-driven investment derivatives could hit $167bn (£149bn); and schemes rush to prepare as the Bank of England ends its bond-buying programme.
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NewsExperts warn DWP rules could lead more schemes to LDI
With pension funds still dealing with the current market turmoil, experts point out the government’s proposed rules for defined benefit funding could force schemes into an even lower-risk environment, increasing the need for liability-driven investments.
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NewsColumbus’s egg and leverage in LDI
There is a story about hindsight that dates back to the 1500s. It involves Christopher Columbus and his discovery of the trade route to the West Indies.
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NewsTPR’s Counsell: DB schemes are not at risk of collapse
Defined benefit pension schemes were not on the verge of collapse before the Bank of England’s gilt market intervention, the Pensions Regulator’s chief executive Charles Counsell has said.
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NewsBoE demands ‘appropriate levels’ of market resilience
On the go: The Bank of England has called on market participants to learn lessons from the current volatility in gilt markets and has said that it is monitoring the behaviour of liability-driven investment managers, with its gilt-purchasing programme set to end on October 14.
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NewsTPR moots LDI power of attorney as Bailey rules out more support
The Pensions Regulator has called on defined benefit pension schemes to review their liquidity, liability hedging and governance processes, suggesting that managers of their liability-driven investments could be granted power of attorney over some assets to quicken trading.
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NewsYields ‘can’t spike again’: Schemes respond to liquidity pressures
Analysis: On September 23, chancellor Kwasi Kwarteng rose to his feet in the House of Commons to deliver a “mini” Budget that would have profound consequences for pension schemes.
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NewsLDI: Pension funds appeal for more BoE support
Market moves: Some pension funds think the Bank of England’s gilt market intervention should go further, while schemes pull capital out of multi-asset credit funds.
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NewsBoE widens gilt purchases after continued bond market volatility
On the go: The Bank of England has widened its bond-purchasing programme to include index-linked gilts after another turbulent day in UK bond markets.