Volatility in defined benefit schemes trumps deficit worries

benjamin-reid

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

To continue reading...

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 indvidual account here: