Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
Quick links:
  • Home
  • The Actuary Issues
  • April 2012
04

Pension schemes 'unprepared for de-risking opportunities'

Open-access content 12th April 2012

Many pension schemes are not set up to take advantage of opportunities to de-risk when they arise, according to the results of a survey published by Schroders today.

2

The asset management company found that 56% of pension schemes surveyed said the average time for them to make an investment decision was over a month. Only 17% were able to make an immediate decision, with 27% able to do so within a month.

At the same time, 44% of schemes questioned said they reviewed their funding level on a monthly basis, 22% quarterly and 28% even less regularly than that. Only 6% review their funding levels weekly.

The survey also found that 51% of respondents had de-risking on their scheme's agenda for this - either for growth assets or risk management. But Schroders' head of UK strategic solutions, Mark Humphreys, questioned whether schemes were prepared to take advantage of de-risking options.

'The recent market turmoil has put de-risking firmly on the Trustees' agenda for 2012,' he said. 'However our survey highlights what we believe is a wider trend - infrequent monitoring and slow decision making may mean that schemes are not set up to take advantage of opportunities to de-risk when they arise.'

In terms of de-risking mechanisms schemes are most likely to use, 36% said they would review growth allocation in general and 28% were most likely to explore a liability-driven investment strategy.

A further 18% were most likely to reduce their overall growth allocation and 14% would prioritise longevity hedging.

Commenting on other key points raised by the survey, which was carried out last month, Mr Humphreys added: 'Another interesting finding from our survey is the willingness of many schemes to engage with a wide range of parties when forming investment ideas. 

'Around 36% of the trustees that responded to our survey said they would turn to their fund manager, 67% said to an investment consultant, 48% said to the scheme actuary and 27% said to other advisers including internal resources.'

This article appeared in our April 2012 issue of The Actuary.
Click here to view this issue
Filed in:
04
Topics:
Pensions
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Actuarial Analyst, Reserving

London (Central)
Up to £75,000
Reference
118759

Actuarial Analyst, Reserving

London (Central)
Up to £40,000
Reference
118758

Student Pricing Actuary

London (Central)
£45,000 - £55,000
Reference
118764
See all jobs »
 
 

Most-Popular

 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2020 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, Level 5, 78 Chamber Street, London, E1 8BL. Tel: 020 7880 6200