Predictable results for pension funds in an uncertain world

October 2016
predictable results for pension funds in an uncertain world

In partnership with ITN we have produced a short film which looks at pension risk management and explores how trustees can invest in a way which focuses on achieving their goals even with the economic uncertainty that lies ahead.

Watch the full video below

The 2008 market crash, Eurozone crisis, and most recently the UK’s Brexit vote caught out many pension funds that were not prepared for the resulting market turmoil.

At the moment many schemes are “really at risk of putting severe strain on their pension fund sponsors, causing companies to get into difficulty, diverting cash that might be invested in the underlying businesses.” Kerrin Rosenberg, UK CEO at Cardano

The challenge for pension funds is to embed the right risk management framework in their investment approach to protect against financial risk and deliver predictable results in an uncertain world.

“We are always trying to build a portfolio that is very robust to a very wide range of potential economic outcomes, because we don’t believe anyone can predict with any degree of certainty what is likely to develop over the long-term in the world economy.” Keith Guthrie, Cardano’s CIO,

As Daniel Kahneman, Nobel prize winner for economic science, states in the film: “organisations, if they are very conscious of what they what to accomplish, they quite possibly can put in place procedures that will protect them from different kinds of errors.

The film will be showcased at the PLSA Investment conference, where we are also running an interactive session at The Trustee Learning Zone on taking back control of pension investments for DB pension schemes called “Volatility: Friend or Foe?”.

To learn more about how to overcome unpredictable challenges and build robust and resilient portfolios get in touch with us.