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
The registration deadline for the Workplace Savings & Benefits Awards 2019 is today.
This week's top stories were the DWP giving the green light to CDC and TPR granting extensions for 11 master trust authorisation applications.
Susan Martin says building strong foundations for business are the only way forward as the pensions industry is radically shaken up
The Pensions Regulator (TPR) has granted Now Pensions a six-week extension for its master trust authorisation application after the 31 March deadline, PP can reveal.