All hedging articles
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NewsDAX pension funds pile into bonds to steady funding ratios
German Bunds and US Treasuries are favourites to hedge funding ratio swings, limit balance sheet volatility, and diversify amid political uncertainty
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NewsDNB reassures Dutch funds on interest rate hedging impact
Dutch pension sector is worried that government bond trades upon switching to defined contribution arrangements could squeeze liquidity and move markets
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NewsGerman corporate pension funds tilt towards fixed income amid risk concerns
While continuing to increase their allocations to private markets, drawn by the potential for improved risk-adjusted returns and greater diversification
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NewsMajority of UK fiduciary managers produced ‘average’ returns over 2024
Fiduciary managers are adjusting tactical equity allocations following the introduction of tariffs
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AnalysisDutch pension funds hedge equity risk in run-up to DC transition
While some funds have sold part of their equity exposure, more are likely to use options to reduce the downside risks to their listed equity investments
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NewsSwiss pension funds make the case for gold allocation in bull market
Swiss schemes usually hold between 3% and 5% of total assets under management in gold
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Opinion PiecesViewpoint: IOSCO’s pre-hedging proposals fall short
The regulator’s umbrella body needs to deliver recommendations that clearly prohibit pre-hedging where dealers are in competition, says Emma Lokko
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NewsDutch pension funds cannot reduce risk without limits, says regulator
Many Dutch schemes plan to dial down investment risk to protect their funding ratios in the run-up to the pension transition
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NewsGerman schemes could face further liquidity risks
Substantial rating downgrades of securities held by German investment funds could lead to high outflows
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NewsAfter bruising year, ATP adds new hedging portfolio to boost return
Danish pensions heavyweight was big seller of equities in 2022
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Opinion PiecesViewpoint: ESMA’s latest shot at ‘pre-hedging’ must now bring a clear set of rules
With a direct and significant impact on the prices that pension and other funds receive for the securities they buy and sell, pre-hedging is a key market cleanliness issue with broad implications for the investment industry, but also the end-investor and the public at large. It should not be overlooked this time around for it could become a LIBOR moment for market confidence.
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News
UK DB schemes may see ‘unexpected financial impacts’ due to high inflation
The impact of inflation on scheme funding will depend on the extent to which schemes have hedged their exposure to inflation
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IPE Conference: Strong sustainability a proxy for good company mgt
Former ATP CIO gives interview on 20th anniversary of massive liability hedging exercise
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Wellcome Trust ‘prospers’ under COVID-19 fallout with 12.3% return
The charity raised cash levels and hedged around 20% of its public equity exposure before the market decline
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Special Report2021 Investment Horizons: Hazy outlook for hedging
Investors must be cautious when navigating today’s cloudy inflation landscape
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Opinion PiecesViewpoint: The tipping point for UK pension schemes
Schemes need to consider how to get to a secure level of funding, but also, the assets they will need to hold when they reach peak cashflows in order to remain fully funded
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NewsMandate roundup: LGPS pool names MAC specialist managers
Plus: Swiss plan tenders out $200-400m emerging market small cap mandate, Record lands $8bn mandate
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News
Increased credit allocation could improve schemes’ liquidity, says AXA IM
Expect equity to remain volatile with a ’significant risk of a second leg down’
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NewsUK yield movements fuel collateral requests
Pension schemes should understand what liquidity is like
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Regulator: Dutch sector schemes’ interest hedge varies widely
On average the level of interest rate hedge is 43.2%
