UK - Funding levels at schemes would be 17% higher if they had adopted strategies to manage downside risk in 1999, a new report claims.
And it warns that a quarter of underfunded schemes risk more than a 10% drop in value over the next three years if they maintain static equity exposure.
Axa Investment Managers’ Strategies with Upside report – carried out by financial sector risk consultancy Barrie & Hibbert – says the drop will apply to a typical plan which has 60% invested in equities.
The report says marginally underfunded schemes should make use of strategies designed to manage downside risk – such as “dynamic contingent immunisation” and “portable alpha”.
The Pensions Regulator (TPR) has seconded staff from other national watchdogs as it rolls out the master trust authorisation and supervision regime, Lesley Titcomb has revealed.
In the second edition of AE Watch, Maria Nazarova-Doyle looks at the performance of the UK's largest DC default funds.
The Pensions Regulator (TPR) and Financial Conduct Authority (FCA) have outlined plans to better understand the consumer pensions journey as they launch their joint strategy.
The Pensions and Lifetime Savings Association (PLSA) is in the process of convening an industry-wide group to take forward the work of the Institutional Disclosure Working Group (IDWG).