UK - The market for liability mandates is going to be worth tens of billions of pounds within the next few years, fund managers predict.
Barclays Global Investors believes the main driver will be the increasing influence of finance directors on pensions policy.
BGI claims that schemes will increasingly turn to liability mandates to avoid the funding problems that they have experienced over the past four years.BGI co-chief executive Andrew Skirton says the fund manager has been building up its resources to cope with the expected influx.
“A lot of finance directors and corporate treasurers have taken a keen interest in the pension affairs, so there’s a new risk management perspective to bear.
“We’ve certainly been building up our skill set over the last few years to make sure that we’ve got the people, the tools, the technology and back office to cope with all this.
“We haven’t got specifics, but over the next year we would expect it to be tens of billions rather than billions in assets, not revenues. It’ll be tens of billions that move to these more tailored solutions and we’ve seen some of that already.”
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