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Investor Profile

PPF looks to hybrids

The Pension Protection Fund was set up nearly a decade ago to protect members of UK defined benefit pension where the sponsor became insolvent.More insurance provider than pension fund it’s risk tolerance is low and its investments conservative. But chief investment officer, Barry Kenneth, says the portfolio is evolving, including a new allocation to hybrids […]
Amanda WhiteJuly 23, 2014
Research

Cost shifting and the freezing of corporate pension plans

This paper, which examines the impact of the trend in the US of corporate funds freezing their defined benefit funds and offering defined contribution plans, shows that net of the increase in total DC contributions, firms save 2.7-3.6 per cent of payroll per year, and over a 10-year horizon they save 3.1 per cent of […]
Amanda WhiteApril 24, 2014
Uncategorised posts

Merton’s message: give up on alpha

Nobel Prize winner, Robert Merton, has thrown down the gauntlet. He claims that by focusing on a retirement income goal he can beat any competitor that is managing a 70:30 portfolio that has wealth accumulation as the goal. Do you dare take him on? The defined contribution pension management industry has it wrong, according to […]
Amanda WhiteDecember 18, 2013
Investor Profile

Conservatism to stay for Norway’s DNB Liv

The $46 billion Norwegian DNB Livforskiring has a conservative strategy but it should not be confused with a static approach. The fund revises the investment strategy of its defined benefit offering on an annual basis.   Norwegian pension investor DNB Livforsikring is set to stick to a conservative investment strategy due to continued regulatory pressures, […]
Dan BillinghamNovember 29, 2013
FIS Amsterdam 2013

Hybrids win governance race: Wisconsin research findings

Hybrid pension schemes, combining both defined contribution and defined benefit characteristics, are best for governance because they align interest of both employees and sponsors argue David Villa, chief investment officer of the $91-billion State of Wisconsin Investment Board (SWIB) and Sorina Zahan, partner and chief investment officer of Chicago-based Core Capital Management, speaking at Conexus […]
Sarah RundellOctober 22, 2013
WPF Risk Summit

Hybrids: best of both worlds

The funding levels of US public pension funds, falling from 100 per cent in 2001 to 77 per cent now, is the result of bad governance, according to David Villa, chief investment officer of the $91 billion State of Wisconsin Investment Board (SWIB). He says irrational governance and imprudent management has resulted in the funding […]
Amanda WhiteAugust 27, 2013
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