Rosa Fenwick News Today

New model will cut margin faster after stresses abate, but costs still high for directional trades

Repo market fears prompt insurers and pension funds to revert to bond collateral

News analysis, case studies and informed comment on the challenges facing UK pension schemes, from Pensions Expert, a DG Publishing service

Pension scheme inflation hedging activity increased by 24% quarter-on-quarter to £24bn during the final three months of 2021, according to BMO Global Asset Management.

So far, DC plans have largely been focused on the onset of auto-enrolment and changes to the regulatory framework - be it the ‘charge cap, ‘pension freedoms or consultations around ‘value for money, says Annabel Tonry, Executive Director at J.P. Morgan Asset Management (JPMAM).Download In 2015 George Osborne, then the UK Chancellor of the Exchequer, decided that those age over 55 could take much more of their pension in cash. This has since opened up a range of possibilities for DC scheme...

Pension schemes increased their inflation hedging in the final quarter of 2020 as major issues were concluded in a “momentous geopolitical quarter”.