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Posts Tagged ‘derisking’


Multi-asset investing – how much risk can you afford?

Investors today face a challenging landscape, with high valuations across many traditional asset classes. Those high valuations come with low prospective returns, below-normal yields and, last but not least, high risk of significant drawdowns. More than ever, investors need to consider how much risk they can afford in pursuit of their investment goals. And more

Excitement x 3 – the election, bond sell-off, and Legoland…

After the excitement of the Election, life returns to normal for the voting public, including pension trustees. Normality for trustees should include having a clear plan for using bond market volatility as an opportunity to de-risk. One of the implications of a General Election is that thousands of public buildings across the country have to

What exactly do you do all day?

There’s a running joke in the Rae household about what I actually do at work. My eldest now thinks I play Match Attax (don’t ask), my middle thinks I’m a builder and my youngest wishes I was Sir Topham Hatt (*makes a mental note to go to the gym more). The reality is perhaps less

Mar 26, 2015 Categories: Investment Strategy, Liability Hedging

Riding the waves of the bond markets

Recent movements in the gilt market have reinforced the importance of ensuring that the design and implementation of a hedging strategy remains flexible enough to withstand market realities. Over the last month, we’ve seen the yield on the 30 year gilt move from 2.40% on 8 January all the way down to 2.08% on 30

Feb 18, 2015 Categories: Investment Strategy, Liability Hedging

Derisking

Last week, my colleague Sorca Kelly-Scholte posted on the publication of the PPF ‘Purple Book’. In particular, Sorca highlighted the extent to which asset de-risking appeared to have slowed down based on asset allocation trends. As I read the same publication, I was caught by a different chart. On page 91 of the Purple Book,

Nov 14, 2014 Categories: Liability Hedging

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
Russell-Investments-wire-blog-Dangers-of-flight-path-planning

The dangers of flight path planning

  ‘Flight planning’ in pensions has many aliases – journey planning, glidepath planning, dynamic derisking. All of these names describe the same idea – investment strategy can change as the scheme’s circumstance changes, and pension schemes should plan ahead for those changes. Typically, this involves planning how the split between growth assets and liability hedging

Mar 12, 2014 Categories: Uncategorized
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Flight paths on cruise control – but watch out for turbulence

This time last year I blogged about pension plans sitting on the runway Waiting to take off. Although many had flight plans in place, few were making switches from growth to liability hedging assets. Derisking had stalled in the face of low interest rates, meaning that the price for hedging liabilities was at an historic

Jan 8, 2014 Categories: Uncategorized

Waiting to take off

This time last year in my paper “Help: we’re running out of gilts” I noticed that pension fund derisking had effectively stalled. The obstacle to derisking was not about economic conditions but about lack of capacity in the market for derisking assets. This lack of capacity wasn’t going to go away any time soon. As

Jan 15, 2013 Categories: Investment Strategy

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