Including: UK - Pension funds need education; US - California funds divest from Iran
UK - Pension funds need education
The Financial Times has reported on a survey of pension fund managers which said that barely over a fifth of large pension funds, with assets of between £5-10bn, had a liability driven investment (LDI) strategy in place.
Critics of the strategy accused LDI of being “a bit of a gimmick” and “a fancy name for asset/liability modelling” but over 30% of funds questioned said they were considering a move to implementing LDI in the future.
US – California funds divest from Iran
Following the signing of the California Public Divest from Iran Act, the two largest US public pension funds, both based in California, will be forced to sell assets in energy companies based in the country, the Wall Street Journal has reported.
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.