The Woodford Investment saga created a surprise for many investors as a result of the suspended redemptions of the Woodford equity fund. The impact it created on individual investors could be a learning curve for pension schemes and trustees.
As the number of authorised master trusts rises to six, we thought it was worth considering the impact of the authorisation regime so far, good and bad.
The general consensus of a consolidated DC market is that it is a good idea. After all it should bring economies of scale and reduced risk. However are there disadvantages too? Are there any unintended consequences?
Chris Pritchard provides insight into Alternative Risk Premia (ARP). This refers to generating returns by taking risks that are quite different to traditional market risks, such as equity risk and credit risk.
The ‘Freedom and Choice’ reforms shook up the market a few years ago and said that people were free to use their pension pot as they wish. However, more freedom equals more choice and that makes choosing what to do at retirement more complex.
An employer will make a very generous contribution of 10% to a pension, but only if the employee makes a contribution of 6%. However, some employees are unable to make the 6%.
The DC pension formula (growth stage) is pivoted on the trinity of how long you put money in to it, how much you put in to it and net investment return.
Managing the risks is just as important in DC as it is in DB. By using the right kind of risk measures, we can focus on investment strategies on the end goals that actually matter.
With recent news highlighting the ever increasing number of people being caught by the LTA, we explain what it is and how pension schemes and their members can navigate their way through the pension tax maze.
From Barnardo’s and BT to Superfunds via GMP – Head of Pensions Research, Tyron Potts, maps out an ‘A - Z’ of everything you may have missed in world of pensions this winter.