The ultimate goal of pension schemes is to deliver pension promises to its members, either those that are explicit in Defined Benefit (DB) schemes such as final salary-based entitlements or those implicit in Defined Contribution (DC) pensions, where members expect their scheme to provide a meaningful retirement income.
These liabilities need to be matched by the scheme’s assets, which should be structured in a way that reflects the age profile of members. This process – generally referred to as Strategic Asset Allocation (SAA) – forms the basis for pension schemes’ portfolio construction and investment strategy.
Around the SAA, investment managers may take active risk positions based on their analysis of expected macroeconomic conditions. They may also over- or underweight specific investment types relative to the SAA based on their outlook using a Tactical Asset Allocation (TAA) overlay. In the long term, pension fund asset values must be protected against inflation which erodes the real value of both investment capital and retirement income.
On completion, you will be able to:
- Understand pension principles and engender more robust pension scheme provision
- Apply best practice governance to ensure more effective management of pension scheme risks
- Design and implement change in pension schemes to make them more sustainable and operationally efficient
- Shape objectives and informed decision making on the proper investment of pension scheme assets
- Identify the specific opportunities and threats relating to investment of pension fund assets:
- - In domestic and overseas market
- - In mainstream securities and private assets such as Private Equity and Infrastructure
- Scheme types
- Changes in pension provision
- The role of the actuary
- The valuation process
- Funding and investment management, including Private Equity and Infrastructure
- Portfolio management and performance measurement
- Scheme administration and governance
- Legislation and regulation
All courses will be conducted entirely in English. A proficient level of both spoken and written English is required by all delegates so that they are able to fully benefit from the course and participate in our interactive style of training.