Pensions - Articles - Pension endgame strategies


The Pensions Management Institute (PMI) announces Insight Investment as its ‘Insight Partner’ for de-risking investment strategies. The partnership will focus on the key considerations facing schemes around whether to buy-in or not to buy-in, which PMI and Insight believe will be a crucial decision for many in 2019.

 As part of the PMI’s role in supporting innovation on topical issues and delivering expert viewpoints to members, the PMI develops Insight Partnerships with organisations considered thought leaders and industry experts. In this capacity, Insight Investment will take a lead in communications activity around Pension endgame strategies, including a session at the PMI’s Trustee Workbench conference on 6 June in London, which will explore some of the key considerations for endgame de-risking planning. 

 Gareth Tancred, Chief Executive of the Pensions Management Institute, commented: “Last year was a record for bulk-annuity deals and this trend is set to continue, while the emergence of commercial consolidators and other buy-out alternatives means schemes need to think carefully when considering their de-risking options.

 “Against this backdrop, we are delighted to be working with Insight Investment to help our members keep abreast of the latest thinking around whether to buy-in or not to buy-in all or part of their scheme assets.”

 Serkan Bektas, Head of Client Solutions Group at Insight Investment, explained: “Given the significance of the decisions facing pension schemes today, we are delighted to partner with the PMI to share our analysis and discuss the pertinent issues involved so trustees are informed and equipped to navigate their endgame options.

 “De-risking decisions can be as complex as they are critical. For example, at first glance, a pensioner buy-in may appear to be a step towards a full buy-out by securing payments for some scheme members. However, in the context of the whole scheme, a buy-in may result in a riskier asset strategy and lower hedge ratio for the residual liabilities, extending the time it takes to achieve a full buy-out. It is therefore critical that schemes fully consider overall value for money, the impact on their total portfolio and whether sufficient flexibility has been retained to deal with risks that are not easily hedged.”
  

Back to Index


Similar News to this Story

Sackers launch guide for trustees on pension transcations
Sackers have published its latest guide for trustees on buy-ins, buy-outs and longevity transactions. This guide is focused on supporting pension sche
Pensions Minister echoes climate warnings in Westminster
MPs from across the House of Commons have debated climate change and pensions. Pensions Minister Guy Opperman responded. Earlier he spoke of ‘kickstar
New tools allow pension schemes to deliver greater value
New tools helping pension schemes deliver greater value for money for millions of savers have been launched today (21 May) by the Cost Transparency In

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.