The tax timebomb


For Nick Greenwood, pension manager for the £1 billion Royal County of Berkshire Pension Fund, the decision to hedge out 43% of its liabilities through a longevity swap was the culmination of a serious focus on liability management by the fund. “When I joined two-and-a-half years ago, the fund had a very traditional asset allocation and liability risk was never mentioned at board meetings. We’re now looking at the risks on the liability side more than the investment side,” he says.

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