All risk modelling articles – Page 3
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PodcastsPodcast: Industry ‘irritation’ with TPR’s code of practice could have been avoided
Podcast: The negative reaction of the industry to the Pensions Regulator’s new code of practice shows what can happen if consultations are handled poorly, says Tim Middleton, director of policy and external affairs at the Pensions Management Institute. He is joined by Steven Taylor, partner at LCP, to discuss consultations, collective defined contribution schemes, and flexibility within the defined benefit universe.
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NewsTPR to amend single code as industry slates new requirements
The Pensions Regulator’s combined code of practice has been dealt a blow after widespread industry criticism forced it to scrap new rules on unregulated investments, while the fate of its proposed “own risk assessment” remains uncertain.
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NewsDC providers default funds weather ‘torrid’ 2020
A new report from Punter Southall has revealed the best-performing defined contribution default providers during Covid-19, with Nest and L&G leading in the consolidation phase, Smart Pension topping cumulative performance in the growth phase, and L&G Multi Asset doing best in the retirement phase.
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NewsChallenges of green regulation should not be underestimated
On the go: More than a quarter of defined benefit pension schemes are only aiming for minimum compliance with new rules and regulations around climate change, the challenge of which should not be underestimated, LCP has warned.
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NewsDIY strategies are ‘better and cheaper way’ to do ESG investing
Customisation of index strategies and direct ownership of equities is a more efficient and cost-effective way of investing sustainably than using ‘off-the-shelf’ index products, according to SigTech, which offers quant technologies to investors.
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NewsNearly a third of Gen Xers have inadequate pension savings
Almost one in three Generation Xers — individuals aged between 41 and 56 — have inadequate pension savings and face a minimum-at-best standard of living in retirement, according to research by the International Longevity Centre and Standard Life.
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NewsGovt rejects calls for £1.2bn pension boost for mineworkers
On the go: The government has rejected calls to reform the Mineworkers’ Pension Scheme that could have seen its members share an additional £1.2bn, a decision critics have branded “intransigent” and a “slap in the face”.
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NewsDesire for cryptocurrencies is ‘deeply concerning’
New research from CoreData has shown almost half of millennials, people aged between 25 and 40, want to invest at least part of their pension in cryptocurrencies such as bitcoin. Experts, however, have warned that cryptocurrencies remain a long way off being a viable investment option.
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NewsTapping DC schemes for growth fund raises industry concern
Chancellor Rishi Sunak is reportedly hoping to draft defined contribution schemes into propping up the government’s proposed Long-Term Assets Fund, though experts have raised concerns about its practicality.
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NewsGovt to reform discount rate and cost-control mechanism
The government has proposed aligning the discount rate review periods with the valuation cycles of public service pension schemes, and is taking forward reforms to the cost-cap mechanism first proposed by the government actuary.
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NewsDWP presses ahead with TCFD rules in time for COP 26
The Department for Work and Pensions is to press ahead with new rules that will require trustees to report on their schemes’ climate change investment risks by October, but has introduced a number of changes and easements to the regulations after industry concerns.
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NewsTPR: Trustees must ‘improve their understanding’ of liquidity risks
On the go: Trustees need to improve their understanding of liquidity risks and do more to monitor and mitigate against them, the Pensions Regulator has said.
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NewsFiduciary managers survive Covid scare with strategies intact
On the go: Most fiduciary managers had positive returns in 2020 without needing to change their investment strategies in light of the Covid-19 pandemic, analysis from XPS has shown.
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NewsSPP, PMI criticise rushed code of practice consultation
The Society of Pension Professionals and the Pensions Management Institute have both criticised the timeframe of the Pensions Regulator’s consultation on its combined code of practice, raising the prospect of its flawed and costly implementation.
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NewsBT agrees £2bn asset-backed funding arrangement to plug deficit
On the go: BT and the trustee of the BT Pension Scheme have agreed to plug £2bn of the scheme’s £7.9bn deficit through an asset-backed funding arrangement secured against the company’s EE business.
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PodcastsPodcast: Pension schemes’ under-allocation to China is ‘anachronistic’
Podcast: UK pension schemes are too often under-allocated to China and missing out on the significant opportunities presented by its continued growth and development. There are, however, lingering environmental, social and governance concerns around investing in the “nominally communist” state, says RisCura investment consultant Lars Hagenbuch. He is joined by SEI Investments director Cyprian Njamma in an episode also covering Covid-19 mortality data and the Pensions Regulator’s proposed asset information reform.
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NewsProfit warnings down but half of DB sponsors remain on life support
Profit warnings from listed companies with defined benefit schemes have dropped by two-thirds in the past six months, but more than half remain in the insolvency “danger zone”, according to figures from EY.
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NewsUK pension schemes under-allocated to Chinese equities
UK pension schemes’ allocation to China as a percentage of global equities is generally inadequate, but there is no consensus as to how big the allocation should be, according to participants at Camradata’s Investing in China roundtable.
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News£6bn swap shows insurers’ appetite for longevity risk
On the go: A £6bn longevity swap by an unnamed UK pension scheme and the Prudential Insurance Company of America suggests that insurers’ appetite for longevity risk has not diminished, despite the uncertainty around the long-term impacts of the Covid-19 pandemic.
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News
Govt should boost CDC pensions to rebalance consumer risk
The Institute and Faculty of Actuaries has proposed a number of measures to tackle the so-called ‘great risk transfer’, among which is a call on the government to emphasise the benefits of collective defined contribution schemes as an alternative to traditional DC pension arrangements.