Institutional Investors Knowledge Centre
SEI Research: The Top Challenges and Priorities for Pension Scheme Trustees in 2012
When asked to identify top priorities and challenges, controlling funded-status volatility led the list for pension scheme trustees in 2012. Not only is controlling volatility important, but it is also important to capitalise on the opportunities that volatility can bring. To do this, stress-testing can help determine a portfolio's sensitivity to various economic scenarios, and allow trustees to react in a timely manner.
Other top priorities focus on how asset allocation can help meet funding goals including:
- Formulate a journey plan
- Make more dynamic asset allocations
- Establish funding level triggers for automatic asset allocation changes
Time for a change?
Respondents were asked whether they were actively considering a change of governance model for the management of their scheme. Nearly half indicated they would be issuing a Request for Proposal within the next 24 months.