Meeting pension fund liabilities through the use of derivatives

Pension funds' liabilities are unlikely to ever decrease and the poor recent performance of stock markets has caused a deficit that can only increase without the use of other instruments

Investment allocation for pension funds is not an easy issue. Let's consider the following data: most pension funds in the UK have significant deficits that have arisen from the poor performance of the stock markets over the last few years. That forces the sponsor to make important contributions to meet the liabilities, or the pension funds to seek investment returns much higher than what can realistically be achieved.

The problem is easy to phrase. Pension funds face liabilities as a result of

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here