HONG KONG - The US$300m Hong Kong Electric Holdings defined benefit pension scheme is set to review its asset allocation next year in a move that could see the outsourcing of part of its fixed income portfolio.
The review - the first since 1998 - will decide whether the Occupational Retirement Scheme Ordinance (ORSO) plan increases part of its fixed income brief.
Group treasurer Karina Li said the review was sparked by wage inflation and market volatility in Hong Kong.
Li explained that the scheme would most likely shift assets from the equity portfolio to the fixed income portfolio, but added that she was unsure as to how much capital would be moved.
Hong Kong Electric Holding’s ORSO has 2,000 members and invests 50% of its assets in overseas equities; 20% in local equities, and 30% in domestic and overseas fixed income, using six undisclosed, active balanced managers.
By Janet Du Chenne
PTL has appointed Karein Davie as a client director in its Birmingham office.
The level of interest rate hedging increased to £29.5bn of liabilities in the second quarter as pension funds continued to de-risk, according to BMO Global Asset Management's research.
UK inflation has risen for the first time since November to 2.5% in July, up from 2.4% in June, thanks to rising fuel costs and the price of computer games.
The number of DB pension scheme trustees targeting a buyout with an insurer has increased significantly in the past five years, latest research from Willis Towers Watson shows.