Investment Strategies & Cash Flow Management for Maturing Pension Funds
08.45 : Registration and Coffee
09.15 : Welcome & Opening Remarks
Trevor Cook, Managing Director, Specialist Pension Services
09.25 : Session 1: Cash Flow
Moderator: Ian Richards, Chair of Trustees, Next Pension Trustees
Sorca Kelly-Scholte, Head of EMEA Pensions Solutions & Advisory, J.P. Morgan Asset Management
CDI - Taking the Global View
As pension investors find themselves in negative cashflow, they are looking for assets that help to match their cashflow requirements and deliver long-term return principally in the form of income. While domestic sterling assets are the best theoretical fit, the sterling markets lack the capacity to satisfy UK pension needs. In this session, Sorca Kelly-Scholte sets out the case for taking the search for asset cashflow global, and in particular to the US, where there is much greater capacity and where deeper markets allow for better diversification of the associated risks.
Paul Skinner, Investment Director and Fixed Income Product Manager, Wellington Management
Cash Flow Driven Investing
Credit is an asset class that is well suited to the needs of a mature pension scheme as it provides return, cashflow and liability hedging. We believe that the focus should be on each scheme's specific cashflow and hedging requirements. To that end, managers need to have the appropriate tools to mitigate risk and provide the required realised rate of return. Given current market conditions, we will be sharing our views on how we believe credit portfolios can best be structured to balance attractive returns with the required security and liquidity to meet ongoing cashflow requirements.
10.40 : Coffee/Tea
11.10 : Session 2: Multi Assets
Moderator: Nigel Stapleton, Chair of Trustees of the National Grid UK Pension Scheme
Simon Levell, Managing Director Consultant Relations, Capital Group
Nisha Thakrar, Client Solutions Specialist, Capital Group
Avoiding False Precision - the Importance of Preserving a Plan B
The temptation with maturing pension funds is to try and lock in a watertight 'Plan A' through an intricate matching strategy. However, given the 'known unknowns' around longevity, managing funding gaps and increasing transfers out, we would argue that it's important to maintain flexibility and the option to move to a Plan B should the situation change. This Plan B involves providing both growth and income and the ability to toggle between them dynamically as the maturity profile involves. Indeed we would suggest that holding a wider range of assets, beyond just fixed income sensibly keeps your options open and mitigates the risk of the cash reserves running dry.
Darren Toner, Portfolio Manager & Partner, CQS
Multi Asset Credit: Capturing Income and Minimising Volatility in Credit Markets
Capturing income whilst minimising volatility should be a key consideration for maturing pension schemes. Alternative credit enables the de risking of portfolios away from equities while maintaining attractive expected risk-adjusted returns. As the relative value between different credit asset classes shifts over time, Multi-Asset Credit (MAC) investing enables tactical and dynamic asset allocation to profit from a board range of opportunities, mitigate risk and mange duration. MAC strategies seek to capitalise on the most compelling individual credit opportunities and to capture relative value opportunities between different credit asset classes and across geographic regions over time. To achieve this, MAC investing requires deep fundamental research and agile portfolio management.
12.25 : Drinks and Lunch
13.35 : Session 3: Liquidity & LDI
Moderator: Paul Black, Client Director, Capital Cranfield
Karin Franceries, Head of Multi Asset Institutional Advisory, Amundi Paris
Viviana Gisimundo, Deputy Head of Institutional Advisory, Amundi Asset Management
Liquidity Needs for Maturing Pension Funds
Using a case study, this session will demonstrate the difficulties that are encountered with traditional asset allocations when a fund is mature and propose solutions to reduce the risk of not meeting pension obligations.
David Morton, Head of DC Investments, Hymans Robertson
The Evolution of LDI
Over the past 10 to 15 years, the use of LDI by DB pension schemes has grown rapidly and provided significant benefits, especially for early adopters. As schemes become increasingly cashflow negative, and interest rates start to rise, LDI mandates still have an important role to play as part of a scheme’s overall investment strategy. In this session, we will discuss how traditional LDI mandates can be evolved to provide schemes with additional flexibility to help them meet ongoing cashflow and liquidity needs, while maintaining an appropriate balance between growth and income assets to deliver required returns.
15.10 Session 4: Practical Issues & Pension Fund Panel
Moderator: Bob Hymas, Trustee Executive, BESTrustees
David Rae, Managing Director, Head of Strategic Client Solutions, Russell Investments
Threading the needle
As pension funds mature and investment time horizons shorter, the margin for error in managing risk and generating investment returns is shrinking. In this session, David Rae examines the evolution of risk management techniques and the practical steps that Trustees can take to position portfolios and ensure a successful transition to buy-out or their end game portfolio.
Pension Fund Insights
How should pension funds react to the major economic challenges that lie ahead? A panel of pension scheme executives and trustees will talk about their pension fund's investment challenges and solutions. Panellists to include:
Trevor Welsh, Head of LDI, PPF
Ian McKinlay, Chief Investment Officer, Lloyds Banking Group Pensions
16.25 : Drinks Reception & Close of Conference
This conference aims to help maturing pension schemes to review their investment options and to address some of the main issues affecting their funds. Under the spotlight will be strategies such as LDI, cash flow management, buy-ins and buy-outs as well as defensive investment strategies and longevity risk management approaches.
The conference is by invitation only for pension funds and other institutional investors. If you are not already receiving an invitation please contact us. A limited number of Complimentary invitations are usually available to genuine pension fund representatives (executives and trustees) and other approved institutional investors. However, to ensure we have room for as many funds as possible, we have to limit free places to 2 attendees per approved organisation thereafter a reduced rate fee is payable per delegate. Furthermore, SPS always reserves the right of admission (free or paid) and our decision is final.
August 30, 2018 Le Meridien Piccadilly, London
September 13, 2018 Le Meridien Piccadilly, London
September 20, 2018 Apollo Hotel, Amsterdam
October 2, 2018 7A Strandvägen, Stockholm
October 11, 2018 Le Meridien Piccadilly, London
November 8, 2018 Le Meridien Piccadilly, London
November 15, 2018 Le Meridien Piccadilly, London
November 22, 2018 V&A Marriott, Manchester
December 11, 2018 Le Meridien Piccadilly, London
January 10, 2019 Le Meridien Piccadilly, London
February 14, 2019 Le Meridien Piccadilly, London
March 7, 2019 Copenhagen
March 13, 2019 Le Meridien Piccadilly, London
March 21, 2019 Apollo Hotel, Amsterdam
April 10, 2019 Le Meridien Piccadilly, London
April 17, 2019 Le Meridien Piccadilly, London
May 9, 2019 Le Meridien Piccadilly, London
June 11, 2019 Dublin
June 18, 2019 Le Meridien Piccadilly, London
July 11, 2019 Le Meridien Piccadilly, London
September 5, 2019 Le Meridien Piccadilly, London
September 12, 2019 Le Meridien Piccadilly, London
September 24, 2019 Apollo Hotel, Amsterdam
October 3, 2019 7A Strandvägen, Stockholm
October 10, 2019 Le Meridien Piccadilly, London
November 7, 2019 Le Meridien Piccadilly, London
November 14, 2019 Le Meridien Piccadilly, London
November 21, 2019 The Met Hotel, Leeds
December 5, 2019 Le Meridien Piccadilly, London