Bursting of tech bubble and a Eurozone debt crisis largest risks to UK DB schemes

Sudden decline of ‘Magnificent Seven’ could see funding levels drop by as much as 11%

Jonathan Stapleton
clock • 4 min read
A sharp downturn in these key tech stocks could lead to substantial market volatility
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A sharp downturn in these key tech stocks could lead to substantial market volatility

A sudden and significant decline in the stock prices of the seven largest technology companies – the so-called ‘Magnificent Seven’ – could lead to well-funded defined benefit (DB) schemes seeing substantial falls in funding, research from Van Lanschot Kempen Investment Management (VLK) finds.

The fiduciary management firm's research modelling the potential impact of five future risk scenarios on UK DB pension schemes found a sharp downturn in these key tech stocks could lead to substant...

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