A holistic look at investing
Physical gilts have generally offered a yield pick-up over equivalent swap-based exposure. Yet this premium has declined over the past two years as pension funds have continued to invest heavily in gilts to match liabilities. Let's consider how much this premium might have to fall for investors to swap bonds for swaps.
Are zombie pension schemes a viable option? And if so, how should their investment strategy be set?
Mark blogging about the pensions generation game reminded me of a couple of Brucie bonuses that investors should be on the lookout for: the diversification bonus and the rebalancing bonus. Although they're often confused, they're very different prizes.
What do inflation-linked pension benefit schemes and Texan cowboys have in common? We look at a source of scheme risk that many trustees may not have considered: limited price indexation risk. This could become increasingly important for trustees as their schemes progress along their de-risking glidepaths.
At LGIM’s client conference, pension-related theatricals took place alongside discussions of ‘digital humans’ and the long-term trends dominating the investment landscape.
If your base case is that interest rates will rise faster than is already priced in, how much should you under-hedge? The answer could be less than you think.
The introduction of auto-enrolment has led millions more to save into a pension. But is encouraging people to put more aside for the future the sole antidote to money worries? What if the worries themselves were stopping people saving?
Some belief is needed in factors other than market exposure to justify choosing a multi-factor strategy over a market-cap weighted one. But how much belief?