Volatility in defined benefit schemes trumps deficit worries
Market exposures to FTSE 100 defined benefit schemes could result in a £100bn spike over one year in their total deficit, reports PensionsFirst
Risk hedging in UK defined benefit (DB) pension schemes should take priority for fund managers above worries over their deficit, as market volatility implies a one-month 95% value-at-risk of £25.4 billion for FTSE 100 DB schemes, says Benjamin Reid, chief executive of consultant firm PensionsFirst Analytics.
The deficit across FTSE 100 DB schemes stands at £43.5 billion - following an £11bn decrease in October, due in part to changes to the IAS 19 accounting of liabilities and a 25bp increase in
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