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
  • August 2013
08

Rise in gilt yields set to continue, says Capita

Open-access content 23rd August 2013

Pension trustees should treat the recent further rise in gilt yields as a trend, not a blip, Capita Employee Benefits has said.

Its actuarial, investment and DB consulting director Julie Stothard urged trustees to de-risk schemes over coming months and to be prepared to act quickly.

'The last week saw a rise of approximately 0.2% in gilt yields but this is merely the continuation of a trend observed over 2013,' Stothard said.

'Gilt yields have now risen by approximately 0.8%-1.0%pa since the key valuation dates of 31 December 2012 and 31 March 2013. We believe that this trend will continue and that a number of de-risking opportunities will arise for those best prepared to act.'

She said the firm did not expect a return to pre-crisis yield levels in the near future, but thought the combination of the Bank of England's continued loose monetary policy, the introduction of forward guidance on interest rates and the recent sharp increases in the manufacturing and construction purchasing managers' indices all supported the likelihood that longer-dated gilt yields could continue to rise.

Stothard said: 'Trustees should use this window of opportunity to maximise their data quality and to ensure that they have the tools to monitor the movement of their scheme's assets and liabilities.

'This preparation will pay significant dividends: they will be able to move quickly and at the best possible price to take full advantage of the opportunities in the market. The difference between being prepared and unprepared could have significant cost implications for the scheme.'

This article appeared in our August 2013 issue of The Actuary.
Click here to view this issue
Filed in:
08
Topics:
Investment
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Pricing Actuary (Marine)

London, England
£60000 - £80000 per annum
Reference
119007

Actuarial Manager - Reserving & Capital

England, London
£80000 - £110000 per annum
Reference
119006

Capital Actuarial Analyst

London (Central)
Up to £45000.00 per annum
Reference
119005
See all jobs »
 
 
 
 

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