Focus on pension fund liabilities
According to a new survey of Irish pension plan trustees, the majority of traditional Irish pension schemes are under-funded. The survey also found that the long-term financial well-being of pension plans is struggling in spite of the strong equity market performance and that a key priority amongst the respondents was to better match pension liabilities and increase bonds.
Tom Geraghty, head of Mercer Investment Consulting in Ireland, added that "while assets have performed well, pension fund liabilities have continued to rise at a faster pace than expected due to declining long term bond yields, enhanced mortality conditions and a strong salary growth environment in the local market."
The survey indicates that an increasing portion of Irish pension fund trustees are moving towards the approach where the asset allocation decision considers liabilities and that these trustees are moving away from the market peer group approach.
- Information courtesy of Study warns of pension shortfall by Ciaran Brennan (www.irishexaminer.com)
To gain an African perspective on these and other pension fund issues visit the Asset Allocation Summit 2007. This summit examines the evolution of pension scheme benchmarks and explores new ideas for liability-driven investing, absolute return mandates and the use of structured products for managing pension scheme risk. Some of the topics include:
Making sense of liability driven investing - presented by Penny Green, Chief Executive Superannuation Arrangements of the University of London, Trustee: Non-academic Staff Pension Scheme, University of London, President, Pensions Management Institute, United Kingdom
Current trends in the approach of pension funds asset allocation presented by Mike Faasen, Group Principal Officer: Post Office Pension Fund, South African Post Office Limited, South Africa
Asset allocation: a retirement fund trustees perspective presented by Barry Shipman, Consultant: Retirement Funds, Chamber of Mines of South Africa, South Africa
The event runs from 26 - 30 March 2007 at The Forum / The Campus, Johannesburg, South Africa
For more information you can visit www.terrapinn.com/2007/assetza
