Author Archive for Sorca Kelly-Scholte

One step forward, two steps back – How pension funding plans are evolving

Earlier this month, The Pensions Regulator published its annual analysis of defined benefit scheme funding and recovery plans. It’s no news that funding levels continue to be hammered by falling yields, and that many recovery plans have been blown off course as a consequence – but in this analysis we can begin to see how

May 28, 2015 Categories: Investment Strategy

DB Plans – officially a “legacy from the past”?

In December, the 40th NAPF Annual Survey revealed that, for the first time, active membership of DC schemes outnumbers that of DB schemes in the UK workplace. That crossover has long been expected, and its arrival has been hastened by auto-enrolment swelling the ranks of DC members. But it is startling nonetheless, coming as it

Jan 8, 2015 Categories: Pension Insights

Everybody knows that pension funds are derisking, right?

Everybody knows that pension funds are derisking, right? Except, it seems, the data. The release of the PPF’s Purple Book 2014 last week gives us the latest comprehensive data set. As the chart below shows, having made big derisking asset allocation shifts in the noughties, pension fund asset allocations have been pretty static for a

Nov 6, 2014 Categories: Pension Insights

De-risking – sometimes it’s good to just let go…

A welcome trend in pension funds is a steady increase in resourcing. One place where you can see it is in Russell’s recent governance survey from which the table below is taken. But while trustees may have put in place a range of resources, the same survey shows that they have not empowered those resources

Oct 23, 2014 Categories: Investment Strategy

Derisk your governance

Most people will agree that ivy growing over a wall is a pretty thing. But behind those pretty leaves the ivy’s grippers can break down stone, brick and mortar, and damage your home. Pension funds have metaphorically been ripping the ivy off their walls for some time, selling out of growth assets to avoid a

Oct 1, 2014 Categories: Investment Strategy

Scottish Independence is no ‘Black Swan’

By the time you are reading this blog, we will probably be less than 24 hours away from knowing the outcome of the Scottish independence referendum . It’s a yes or a no. There’s nothing in-between. The differences in consequences for pension funds, as well as others, are vast. In the jargon, this is an

Sep 17, 2014 Categories: Investment Strategy

The new pensions landscape – the Butcher, the Baker, the Candlestick-maker

Today I’m giving a short talk at our Quarterly Funding & Investment Review giving an overview of how the recent raft of pensions announcements, codes and consultations might affect defined benefit pension plans. ‘The Butcher, the Baker, the Candlestick‐maker’ in pensions are: Freedom & Choice in Pensions (the Butcher) – defined benefit pension plans have been in

Jul 23, 2014 Categories: Investment Strategy

The ‘No True Scotsman Fallacy’ and the active vs. passive debate in LGPS

Imagine Hamish McDonald, a Scotsman, sitting down with his Glasgow Morning Herald and seeing an article about how the  “Brighton Sex Maniac Strikes Again”. Hamish is shocked and declares: “No Scotsman would do such a thing”. The next day he sits down to read his Glasgow Morning Herald again, and this time finds an article

Jul 16, 2014 Categories: Investment Strategy

Diversification: weathering the storms

Everyone has experienced it. One minute the sun is shining and the sky is blue, and the next, great big storm clouds have gathered overhead and you are caught in a torrential downpour (usually on the days you left the house without an umbrella!). In a similar way, every pension trustee board faces storms too,

Jul 10, 2014 Categories: Investment Strategy

Growth investments – looking in the right places

At the NAPF Investment Conference in March, one of my personal favourite sessions was my colleague Don Ezra’s talk on happiness (see short video below). Turns out that happiness is not the preserve of the young. Apparently, research shows that, as we get older we gain greater perspective and more contentment. So believe it or

Jun 19, 2014 Categories: Investment Strategy


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