There are now only just over six months to go before the new regulations on environmental, social and governance (ESG) disclosure come into effect for pension schemes.
Large funding deficits and low yields have meant that, for many trustees, annuities haven’t been considered a suitable asset over the last decade. However, that picture is changing slowly.
Trustees of DB schemes must consider many factors when considering a superfund transaction; buy-outs offer more security but are not always affordable.
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.
Trustees of defined contribution pension schemes face increasing responsibility, as information must now be made available to the general public.
Supported by attractive pricing from insurers, many scheme are finding opportunities to de-risk using bulk annuities, meaning demand is extremely strong.
Trustees of DB schemes must plan for a new long-term future for their members, as the traditional journey has changed.
Recently, one of our clients asked us for some help in thinking about their currency risks, ahead of Brexit. Although they had most of their assets invested in UK markets, they wanted to reduce their currency risk and they therefore expected our advice to focus on their overseas investments. But sometimes risk can appear in unexpected places and the best solution can be the opposite of what you expect. In this case we had to go beyond the expected to get the best result.
The DWP issued a response to its consultation on trustees’ investment duties in 2018. The focus was on the expectations upon trustees to take account of financially material risks within their investment strategies.
ESG, SRI, ethical investing are often used interchangeably; but actually they are different and these differences affect how client portfolios should be designed and which investments are appropriate for meeting a client’s objectives.