What investment solutions are available to pension funds to address their current investment challenges and what tools are available for implementing these? How can a fund achieve capital protection and did any succeed in 2008/9? What about buying-out liabilities or mortality hedging? By considering a range of strategies and tools, both conventional and progressive, this conference will seek to answers these questions and give pension funds a better understanding of the key investment challenges and the best practice solutions.
Moderator: Chris de Marco, Senior Investment Consultant, Hewitt Associates
“Managing solvency risk though integrated solutions”
“Managing solvency is the key goal of DB pension schemes. Integrating that objective not only in the strategic asset allocation, but also in a dynamic approach to hedging the different risks (interest rates, inflation, equity) is a key trend for pension schemes across Europe. We look at how schemes are dealing with this challenge and highlight the key factors to consider.
Erwin Boscher, Head of Pensions Group, AXA Investment Managers
“Currency: Why It Matters”
Pension funds and other institutional investors face a challenge in assessing the management of currency exposures embedded in their portfolios. Currency Management has existed as an institutional product for well over two decades as a tool to help meet that challenge (and even use it to their advantage). This presentation will cover the sources of that challenge, as well as the methods to manage it in an institutional framework.
Dori Levanoni, Partner, Co-Director of Global Macro, First Quadrant
10.30
Coffee/Tea
11.00
Some Solutions in Equities
“Quant - a four letter word? Investing with Momentum, the Past, Present and Future”
Use of momentum, analysts’ expectations, and fundamental data in stock selection models; Barra and APT multi-factor models; Momentum investing has been rewarded by the market since 1928; Combining Momentum and other factors to successfully identify mispriced securities; Global earnings forecasting variables not dead.
Rob Gillam, Chief Investment Officer, McKinley Capital Management
“Equity “Compounders”: Seeking Certainty in an Uncertain World”
The global macroeconomic outlook remains in a state of considerable flux. This uncertainty continues to present a challenge for investors looking for assets with the potential to generate attractive returns, yet offer a degree of capital preservation. Asset allocation decisions are further complicated by an inflation outlook that remains far from clear. Against this backdrop, how do you generate stable, consistent returns? How can you identify high quality companies with recurring revenues and avoid those that are erratic or inferior creators of long-term wealth? What do we mean by compounders and why invest in compounders now?
Bruno Paulson, Portfolio Manager in the Global Franchise team, Morgan Stanley Investment Management
12.20
Drinks & Lunch
13.50
Reducing Pension Risk
Moderator: Anne Sander, Senior Investment Consultant & Actuary, Aon Consulting
Annuities: Risk and Reward
With the global economic uncertainty and the UK post-election economic environment, there is currently an opportunity for pension funds and their sponsors to fully insure some of their liabilities under a gilts-backed insurance contract at a premium lower than the reserves held as Technical Provisions.
Guy Freeman, Executive Director, Rothesay Life
Longevity Update: What is happening in the Market: Buying Out / Buying In or Simply Hedging?
Now there is a market in investment products that allow schemes to hedge out longevity risk as well as interest rate risks, does it still make sense for pension funds to buy-out (or buy-in) their pension benefits to reduce risk?
Paul Kitson, Senior Consultant, Towers Watson
15.10
Coffee/Tea
15.30
Looking at the Practical Issues
Moderator: Polly Watts, Independent Consultant
Fiduciary Modelling
Does it make sense to give up responsibility for investment strategy to a third party? Can you really outsource the asset allocation and the selection, of the underlying fund managers? What long term objectives do you set? Can you hold someone to account to ensure the fund meets its objectives?
Markus Aakko, Global Portfolio Solutions, Goldman Sachs Asset Management
“Panel Session” A pension fund panel will talk about their experiences. Panelists include:
Martin Veasey, Investment Director, HBOS Final Salary Pension Scheme
