The Great Pension Derisking
April 15, 2013
Stung by funding shortfalls time and again, companies are using a variety of tactics to lighten their pension burdens for good. Read more.
Liability Driven Investing May Be Appropriate for Pension Funds in All Interest Rate Environments
November 1, 2012
Pension funds may continue to implement their approved liability driven investment strategies (LDI) despite the low-interest environment. Read more.
Aegon clinches record longevity protection deal
February 17, 2012
Dutch life insurer Aegon has struck a 12 billion euro ($15.65 billion) deal with Deutsche Bank to protect itself against the financial impact of customers living longer than expected, the biggest such transaction in Europe. Read more.
Market welcomes Rolls-Royce pensions move
November 28, 2011
Rolls-Royce has seen its share price rise 2.5% after announcing that its pension scheme had insured £3bn of its liabilities against the risk of members living longer, giving rise to predictions that the number of FTSE100 companies using this kind of insurance could double over the next 12 months. Read more.
Longevity Risk: A Major Threat to Pension Funds and Sponsoring Companies
March 28, 2011
Longevity risk is being recognised as a major threat to UK pension funds and the companies who sponsor them. Many funds are now considering de-risking their liabilities over time and finding that it might be more cost efficient to de-risk by using more than one tool. Read more.
Risk management a priority for Canadian defined benefit pension plans
January 19, 2011
Pension plans are moving away from traditional investment strategies in an effort to manage risk according to Mercer’s 2010 Asset Allocation Survey for Canadian Defined Benefit Plans.
More than 190 Canadian defined benefit (DB) plans participated in the study of their fund allocations to traditional asset classes and alternative investments. The plans in the survey range in size from $100,000 to over $10 billion in assets. The Mercer survey also identifies links between asset allocation strategies, plan size and the state of the plans’ liabilities, and reviews a variety of governance issues facing plans. Read more.
Nortel’s orphans seek new pension option – Proposal could beat annuity payouts
September 13, 2010
Members of Nortel Networks Corp. pension plans are to demonstrate a Queen’s Park again Wednesday, pleading for an experiment that might increase their retirement income.
An imaginative plan devised with the help of consulting actuaries and lawyers faces some skepticism, opposition from representatives of about 35 of Nortel’s 400 disabled employees, and various legal, financial, political and time constraints. Read more.
Commodities as Inflation Hedge
July 13, 2010
With massive amounts of cash sloshing through the world’s economies, it’s only natural that investors should have nightmares about inflation. But by now, it’s too late do anything about it. People – let’s call them the markets – have already made gold a very expensive proposition. Read more.
BMW lays off UK pension liabilities with Deutsche Bank
February 22, 2010
German car maker BMW has offloaded 3 billion pounds ($4.6 billion) of the risk posed by people living longer from its UK pension scheme to Deutsche Bank, in the biggest deal of its kind.
“The capital markets and reinsurance sectors have always traded in longevity risk but only a handful of transactions have been formatted to work for a pension scheme,” he said. “A transaction of this scale and with a pension scheme will dilute the nervousness in the system and pave the way for more deals of this kind.” Read more.
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