Asset Allocation – Page 160
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Features
The great bond shortage?
IPE asked three pension funds in three countries – the Netherlands, the UK and Switzerland: ‘Does the scarcity of high-quality long-term government bonds highlighted by the OECD, pose a problem?’ Here are their answers: Peter Scales, chief executive of the London Pensions Fund Authority, which has AUM of £3.2bn ...
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Features
An awkward customer
In a world of increasing demand for investment solutions based around liability driven benchmarks, how do global bond portfolios fit in? Historically, as Paul Abberley, head of fixed income at ABN AMRO Asset Management points out, “global bonds have always been problematic as an asset class in an optimisation framework. ...
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Features
Asset managers rise to challenges
One of the greatest challenges facing the Irish pensions market at present is the average funding level of Irish pension funds, which stands at around 70%. This came about largely due to high equity exposures at the time of the stock market turmoil and today restricts the room for manoeuvre ...
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Features
Anatomy of satisfaction
Fonchim, the €4.5bn industrywide pension fund for Italy’s chemical and pharmaceutical industry workers, has been one of the most successful of the new complementary pension funds at recruiting members. The fund has attracted 116,000 members, 60% of its potential membership, since it was launched in 1999. This is far higher ...
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Features
Moving smartly up the agenda
It used to be a simple enough thing. Allocate to equities, and ignore your risk exposure. Strong markets, and pension surpluses, meant you didn’t have to worry. With the heady days of the 1990s gone, pension funds are facing tougher times, and risk management has become an important issue. Not ...
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Features
Directive's impact across board
The objective of the IORPs Directive, otherwise known as the ‘pensions directive’ is to set a common minimum standard of pension scheme governance across EU member states. The directive applies to funded arrangements which provide retirement benefits and are separate legal entities to their sponsoring employers, that is, it applies ...
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Features
Germany's Aba warns of DC risks
Germany’s occupational pensions association Aba has come out against the proliferation of defined contribution plans in Germany, arguing that DC creates new risks for employers and is ineffective. Although German occupational pension schemes have traditionally been defined benefit in nature, many companies are switching to DC. Prominent examples include steel ...
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Features
Making AA more dynamic
Trustees are familiar with the world of triennial actuarial valuations, and the accompanying review of contribution rates and investment strategy. Typically, time would be allocated to consider the investment strategy (strategic asset allocation, or policy portfolio) in order to ‘get it right’. It would then be fixed for three years, ...
