SEI Quick Poll: Controlling Pension Funding Volatility Named Top Priority For 2012
Survey Reveals the Top 5 Priorities for UK Pension Schemes This Year
LONDON, Feb. 28, 2012 – An SEI (NASDAQ:SEIC) Quick Poll found that U.K. pension schemes view controlling funded status volatility as the top priority for their organizations. Over 60 percent said it is either a “high” or “extremely high” priority. An equally high priority was the need to more closely monitor the scheme’s assets and liabilities (60 percent), followed closely by the need to formulate a journey plan to meet funding goals, which 57 percent identified as either a “high” or “extremely high” priority for their pension scheme in the year ahead.
In addition to identifying key priorities for the scheme the survey also questioned respondents on their appetite for change. Forty-four percent of those surveyed stated that they would be considering a new model for the management of their investments within the next 24 months, revealing that a large number of schemes are considering reviewing their current model and providers.
“Market swings and low interest rates have really taken a toll on the funded status of U.K. pension schemes over the past few years. Many schemes now face the burden of making substantial contributions to their plans in order to meet funding requirements,” said Patrick Disney, Managing Director of SEI’s Institutional Group in the EMEA region. “As markets continue to be volatile, schemes pursue sophisticated risk-management strategies designed to better control volatility of the funded status of their pension. Volatility has caused many pension schemes to review current practices and consider alternative governance structures and additional assistance from providers such as Fiduciary Managers.”
Conducted in January, the Quick Poll surveyed over 30 executives overseeing UK corporate defined benefit plans, ranging from £15 million to over £1 billion in assets, none of which were Institutional clients of SEI. Poll participants were asked to rank statements as a “marginal,” “high” or “extremely high” priority for their organizations. The results were tabulated using a weighted system. The top 5 priorities for 2012 are as follows:
- Controlling funded status volatility
- Closer monitoring of the scheme’s assets and liabilities
- Formulating a journey plan for meeting funding goals
- Making more dynamic asset allocations
- Establishing funding level triggers to make automatic changes to asset allocations
A complete summary of the poll is available by emailing firstname.lastname@example.org.
About SEI’s Institutional Group
SEI’s Institutional Group is the first and largest global provider of fiduciary management investment services. The company began offering these services in 1992 and today acts as a fiduciary manager to more than 450 retirement, nonprofit and healthcare clients in six different countries. Through a flexible model designed to help our clients achieve financial goals, we provide asset allocation advice and modeling, investment management, risk monitoring and stress testing, active liability-focused investing and integrated goals-based reporting. For more information visit: http://www.seic.com/enUS/institutional-investors.htm.
SEI (NASDAQ:SEIC) is a leading global provider of investment processing, fund processing, and investment management business outsourcing solutions that help corporations, financial institutions, financial advisors, and ultra-high-net-worth families create and manage wealth. As of December 31, 2011, through its subsidiaries and partnerships in which the company has a significant interest, SEI manages or administers $404 billion in mutual fund and pooled or separately managed assets, including $172 billion in assets under management and $232 billion in client assets under administration. For more information, visit www.seic.com.