• Home
  • Admin/Tech
  • Benefits
  • Buzz
  • DB
  • DC
  • Diversity
  • Investment
  • Law & regulation
  • Risk reduction
  • Events
  • Whitepapers
  • Spotlights
  • Digital Edition
  • PPTV
  • Newsletters
  • Sign in
  •  
      • Newsletters
      • Account details
      • Contact support
      • Sign out
     
    •  

      You are currently accessing ProfessionalPensions via your Enterprise account.

      If you already have an account please use the link below to sign in.

      If you have any problems with your access or would like to request an individual access account please contact our customer service team.

      Phone: +44 (0) 1858 438800

      Email: [email protected]

      • Sign in
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
    • YouTube
  • Register
  • Subscribe
  • Events
    • Upcoming events
      event logo
      Investment Conference

      This two part Investment Conference will bring you the latest updates from economists, asset managers and pension consultants. We will be taking a look at the outlook for the 2021 economy, alternatives, cashflow strategies and global equity markets to name a few, assessing how they fared through the volatility and what we can expect for the year ahead.

      • Date: 20 Jan 2021
      • Digital Conference
      event logo
      Webinar: Using passion for ESG to unleash member engagement

      This webinar will look at how pension schemes can harness their members’ interest in ESG to engage them more broadly with their pensions. In particular, it will look at exclusive research showing how members are reacting to ESG; their propensity to act versus their actual behaviour; and the expectations they have of providers in this regard.

      • Date: 26 Jan 2021
      • Webinar
      event logo
      Webinar: What to put on your GMP Equalisation project roadmap for 2021

      This webinar will bring together views from actuaries, lawyers, administrators, trustees and data experts to look at the pragmatic, collaborative solutions that are open to schemes to solve the GMP equalisation challenges in 2021. It will assess the individual challenges schemes face with equalisations and provide some practical options that are available to resolve these issues.

      • Date: 02 Feb 2021
      • Webinar
      event logo
      Webinar: Will the world return to normal in 2021?

      In this webinar, PP editor Jonathan Stapleton will be joined by BMO’s chief economist Steven Bell and director of fiduciary management, Christy Jesudasan, alongside PTL trustee director Melanie Cusack and Isio’s head of fiduciary management oversight Paula Champion to discuss the significant impact of these themes on the pensions sector.

      • Date: 04 Feb 2021
      • Webinar
      View all events
      Follow our Professional Pension Events

      Sign up to receive email alerts about our events

      Sign up

  • Whitepapers
    • How DC schemes can gain exposure to different asset classes in a low-return environment

      So far, DC plans have largely been focused on the onset of auto-enrolment and changes to the regulatory framework - be it the ‘charge cap,' ‘pension freedoms' or consultations around ‘value for money', says Annabel Tonry, Executive Director at J.P. Morgan Asset Management (JPMAM).

      Download
      Pension freedoms three years on

      In 2015 George Osborne, then the UK Chancellor of the Exchequer, decided that those age over 55 could take much more of their pension in cash. This has since opened up a range of possibilities for DC scheme members in the world of pensions.

      Download
      Find whitepapers
      Search by title or subject area
      View all whitepapers
  • Spotlights
  • Digital Edition
Professional Pensions
Professional Pensions
Sponsored by T. Rowe Price
  • Home
  • Admin/Tech
  • Benefits
  • Buzz
  • DB
  • DC
  • Diversity
  • Investment
  • Law & regulation
  • Risk reduction
 
    • Newsletters
    • Account details
    • Contact support
    • Sign out
 
  •  

    You are currently accessing ProfessionalPensions via your Enterprise account.

    If you already have an account please use the link below to sign in.

    If you have any problems with your access or would like to request an individual access account please contact our customer service team.

    Phone: +44 (0) 1858 438800

    Email: [email protected]

    • Sign in
 
  • Employee Benefits

Partner Insight: Can illiquid investments help in a slow-growth future?

  • Chris Inman
  • 20 June 2019
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
0 Comments

Aon head of DC investment advisory Chris Inman explores the many uses of illiquid assets in pension portfolios.

DC members face an uncertain outlook. ‘Late cycle' worries keep coming back, bringing with them bouts of market volatility, as we saw at the back end of 2018. Amid this uncertainty, there are untapped opportunities. The increasing access to illiquid assets that broaden the investment opportunity set for DC schemes, as well as the potential for responsible investing initiatives to engage savers, will be key to improving member outcomes. Both can be utilised, along with the current DC investment range, in individualised glidepaths, which explicitly target the member's desired outcome.

Why is DC investment in illiquid assets set to increase?

There has been a lot of focus on illiquid assets as the solution to all our problems. While we do believe that their use can help improve member outcomes, we should fundamentally be considering them as a diversification tool, offering wider access to markets and benefits through a number of factors, including lower correlation to equity markets; inflation linked returns; and illiquidity premium. Given the long-term nature of DC savings, illiquid assets are a natural fit but they are not a homogenous group!

We see their potential usage differing according to DC savers' varying objectives, for example:

• Explicit inflation-link may be achieved through contractual terms within many infrastructure projects, supporting real long-term growth;

• The relatively high expected return potential through private equity or venture capital portfolios (versus public equity) may particularly benefit members in the ‘early career' stage, who typically have a higher risk tolerance and the opportunity to seek higher returns through taking on illiquidity risk;

• Superior downside protection compared to many listed exposures, particularly during times of market stress; and

• A natural income yield, which has potential to form a significant part of an investor's spending needs post-retirement. 

Aon believes illiquid assets have a big role to play in DC default funds. We currently create bespoke, outcome-oriented strategies, either standalone or as part of fiduciary solutions, that combine illiquid assets with listed alternatives for liquidity, diversification and tactical asset allocation purposes.

Click here to learn more from Aon on how to improve member outcomes for DC pensioners

 

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Employee Benefits
  • Aon
  • DC Pension Scehemes
blog comments powered by Disqus
Back to Top
Trustpilot

 

  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters
  • YouTube

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading