UK - Schemes will slash their equity weightings in order to increase their bond allocations and move to liability-driven mandates, fund managers claim.
Research carried out by the Investment Management Association shows fund managers believe the 56% equity weightings held by pension funds will fall sharply. They believe equity levels will fall to levels similar to life funds, where the average weighting is 31%.
Bond investments currently make up 33% of pension fund portfolios and the 113 IMA members surveyed – who collectively manage £2trn on behalf of UK-based clients – expect this to increase at the expense of equities. Liability mandates will also benefit from moves to cut equity weightings.
IMA chief executive Richard Saunders said: “The emerging trend of liability-based benchmarking is likely to result in an increased level of bond investment, and illustrates firms’ ability to adapt to a changing environment.“
The Pensions Regulator (TPR) and Labour MP Stephen Kinnock and will listen to the experiences of steelworkers when transferring their pensions away from the British Steel Pension Scheme (BSPS) next week in Port Talbot.
Just Group has acquired a 75% stake in the holding company of Corinthian Pension Consulting in a bid to strengthen its professional defined benefit (DB) advisory services.
The Pensions Regulator (TPR) has exercised its production order power under the Proceeds of Crime Act 2002 for the very first time as part of a fraud investigation.
The ITN Limited Pension Scheme has named Trafalgar House as its administrator for an initial term of five years.