TIPS (Treasury Inflation Protected Securities) are US inflation-linked bonds, but should they also play a role in UK defined benefit (DB) schemes’ portfolios? Our new research challenges some conventional assumptions about inflation hedging a DB scheme, and explains how TIPS could help reduce risk as well as boost returns.
There’s a natural asymmetry in defined benefit (DB) pension schemes, compared with defined contribution (DC) schemes: upside is capped because trustees don’t need to pay more than 100% of promised benefits. The implications of this cap for your investment strategy are not necessarily as straightforward as you may think.;
2018 will probably be remembered as the year volatility returned to the market. As highlighted in our CIO's investment outlook, there are a number of tail risks on the horizon that could cause this to continue. While there is no panacea for market volatility, these four simple steps can help reduce the impact.;