TOPICS COVERED GENERATING INCOME FROM PRIVATE MARKETS, EXCHANGE TRADED FUNDS AND LOW VOLATILITY INVESTING
The Pensions and Lifetime Savings Association (PLSA) launched three new Made Simple Guides at its Annual Conference in Liverpool. The three publications, Generating Income from Private Markets (sponsored by BlackRock), Exchange Traded Funds (ETFs) (sponsored by iShares) and Low Volatility Investing (sponsored by Acadian) provide an introduction to these complex areas of investment and pensions management.
Joanne Segars, Chief Executive, Pensions and Lifetime Savings Association, commented:
“At a time when pension schemes face increasing deficits and low returns our new Made Simple Guides offer straight-forward explanations on investment options which may help navigate the current low return environment – helping them to get the best return for their scheme. We greatly appreciate the time, effort and knowledge that BlackRock, iShares and Acadian have put into the creation of these Made Simple Guides – they will be a great help to our members.”
GENERATING INCOME FROM PRIVATE MARKETS MADE SIMPLE GUIDE
Andrew Stephens, Managing Director at BlackRock, commented:
“In today’s compressed return environment, a growing number of pension schemes are looking to generate additional yield by investing in private market assets. We believe this is the right response, and we would encourage trustees to get more familiar with these asset classes. This guide has been written with that aim in mind, discussing the different sources of alternative income and the practical aspects trustees should be aware of. It should be a useful tool to initiate discussions both within the trustee board and with advisers and managers. We are very pleased to be able to help start those discussions by creating this guide in partnership with the PLSA.”
EXCHANGE TRADED FUNDS MADE SIMPLE GUIDE
Ashley Fagan, head of iShares UK institutional client business, said:
“In today’s increasingly challenging world, many pension schemes are reviewing the products they hold to ensure they get the best value for money for their members. Index investment vehicles, including exchange-traded funds (ETFs), are increasing in popularity.
"Pension funds and consultants are now using ETFs because of the transparent and cost-effective access that ETFs can offer to a broad range of asset classes including alternatives, such as property and commodities, as well as an extensive range of equity and fixed income exposures. We believe that pension schemes and their stakeholders could benefit from exploring how the index investing landscape has evolved and the potential opportunities this presents.
"Within this Made Simple Guide, we have put forward a framework to help trustees evaluate ETFs versus other products by outlining key characteristics and benefits. We hope this will help trustees in discussions with scheme advisers on what instruments to use to best fulfil their investment objectives.”
LOW VOLATILITY INVESTING MADE SIMPLE GUIDE
Oliver Close, Director of UCITS Funds of Acadian, said:
“This Made Simple Guide aims to explain what low volatility investing is. We’ve looked at the practical implementation considerations of this approach, and how it can fit within both DB and DC pension portfolios. We believe low-volatility equity strategies are a good fit for a DC pension plan throughout both a member’s savings journey and retirement. They are also appropriate for DB schemes’ equity allocations, giving access to assets which deliver higher than average returns necessary for offsetting longevity risk, and for preserving some allocation to assets that are not expected to underperform when inflation is high. We are delighted to have partnered with the PLSA to create this Made Simple Guide, which we hope schemes will find helpful, especially in the current, challenging economic environment.”
PDF versions of these Made Simple Guides are available to download FREE from the Pensions and Lifetime Savings Association website. Printed copies are also available and can be ordered online at www.plsa.co.uk (£18 for members and £35 for non-members).
The Made Simple Guides were launched at the Pensions and Lifetime Savings Association’s Annual Conference in Liverpool on Thursday 20 October 2016.
NOTES TO EDITORS:
Other recent made simple guides include topics such as better data, better governance; diversified growth funds; and foreign exchange.
THE PENSIONS AND LIFETIME SAVINGS ASSOCIATION
We’re the Pensions and Lifetime Savings Association; the national association with a ninety year history of helping pension professionals run better pension schemes. Our members include over 1,300 pension schemes with 20 million members and £1 trillion in assets, and over 400 businesses. They make us the voice for pensions and lifetime savings in Westminster, Whitehall and Brussels.
Our purpose is simple: to help everyone to achieve a better income in retirement. We work to get more money into retirement savings, to get more value out of those savings and to build the confidence and understanding of savers.
BlackRock is a global leader in investment management, risk management and advisory services for institutional and retail clients. At June 30, 2016, BlackRock’s AUM was $4.890 trillion. BlackRock helps clients around the world meet their goals and overcome challenges with a range of products that include separate accounts, mutual funds, iShares® (exchange-traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. As of June 30, 2016, the firm had approximately 12,700 employees in more than 30 countries and a major presence in global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa.
iShares® is a global leader in exchange-traded funds (ETFs), with more than a decade of expertise and commitment to individual and institutional investors of all sizes. With over 700 funds globally across multiple asset classes and strategies and more than $1 trillion in assets under management as of June 30, 2016, iShares helps clients around the world build the core of their portfolios, meet specific investment goals and implement market views. iShares funds are powered by the expert portfolio and risk management of BlackRock, trusted to manage more money than any other investment firm.1
1. Based on $4.890 trillion in AUM as of 6/30/16.
Acadian Asset Management LLC invests on behalf of institutional investors such as pension funds, endowments, governments and foundations, as well as individual investors. As of November 30, 2015, the firm managed over $69 billion. The firm uses an innovative array of disciplined, quantitative investment techniques and analytical models for active stock selection as well as country, sector and currency valuation. Acadian’s strategies include managed volatility, emerging markets, global equity, small-cap, long/short, market neutral, and non-US equity strategies. For more information on Acadian, please visit www.acadian-asset.com.
MEDIA CONTACTS FOR THE PENSIONS AND LIFETIME SAVINGS ASSOCIATION:
Lucy Grubb, Head of Media and PR, Pensions and Lifetime Savings Association
T: 020 7601 1726, M: 07713 073 023, E: [email protected]
Babak Mayamey, PR Manager, Pensions and Lifetime Savings Association
T: 020 7601 1718, M: 07825 171 446, E: [email protected]
Kathryn Mortimer, Press Officer, Pensions and Lifetime Savings Association
T: 020 7601 1748, M: 07901 007 713, E: [email protected]