Two year gilt yields have risen to 4.48%, the highest level since last September’s peak
Broadstone finds schemes moved closer to self sufficiency while XPS finds DB surpluses rose
SSGA’s research shows investors are looking at index and systematic strategies
Yields on benchmark UK government bonds have risen more than four-fold during 2022
Coronavirus (Covid-19) has rattled investors of all kinds, but the market reaction poses some challenges unique to pension funds, Duncan Lamont writes.
The majority of pension schemes that are using a long-term funding target are focused on self-sufficiency, Aon research has revealed.
It would be inappropriate to name and shame schemes which do not sign up to the Star Initiative, a majority of Pensions Buzz respondents said in backlash to comments made by the pensions minister.
Pension funds could face a dilemma over their fiduciary duties as falls in gilt yields mean they may have to buy securities that are guaranteed to lose money, according to Cambridge Associates.
This week's top stories included Legal & General acquiring MyFutureNow to provide a dashboard service to customers, while also agreeing a hybrid buy-in with a Hitachi scheme.
Pension schemes that have not hedged their liabilities could face funding issues as long-dated bond yields have plummeted, industry experts have warned.