All liquidity articles
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Opinion PiecesViewpoint: How should institutional investors insulate from poor private equity performance?
2024 was by many measures another poor year for private equity. Against the backdrop of flat industry assets under management and falling capital raised, annual exits have now fallen to 50% of the levels seen in 2022. Cash distributions, aided by a range of financial engineering techniques rather than true ...
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NewsEIOPA launches liquidity stress test of European pension funds
Fifth stress test exercise focuses on liquidity in light of recent market episodes like the LDI crisis in the UK in 2022
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NewsPension funds foresee increased risk to assets and liabilities in 2025
77% of pension fund executives surveyed by Ortec Finance say they expect the coming year to bring an elevated risk profile
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Opinion PiecesViewpoint: The new market reality requires a total portfolio approach
In this new era of lower returns with higher risk, investors must rethink how they balance risk, liquidity and returns with greater discernment and due diligence
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NewsPrevAer shifts to multi-asset strategy
Eurizon will run the strategy across the scheme’s three sub-funds through Alternative Investment Funds
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InterviewsHow pension funds manage derivatives and liquidity needs
The use of derivatives, for hedging and other purposes, is common among pension funds, but it can be a drain on liquidity. We asked three pension funds how they ensure adequate levels of liquidity when interest rates are volatile
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NewsDutch pension funds increase short-term holdings
The increased liquidity reserves risk negatively impacting long-term returns, signals regulator DNB
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NewsBayer Pensionskasse CEO calls for minimum standards for IORP liquidity risks
Stephan Nellshen said a ‘one-size-fits-all’ approach to dealing with liquidity risks, especially at the European level, would not work well
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NewsSNB Bills emerge as new tool for Swiss schemes’ liquidity management
SNB Bills can play an important role in negotiations with banks on interest rates, says PPCmetrics’ Lukas Riesen
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NewsCurrent policy initiatives could be detrimental to UK’s productive finance agenda
Any attempt to force providers to invest more heavily in certain asset classes is a direct challenge to trustees’ fiduciary duty, says Pensions Policy Institute
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NewsPayout of 13th month of pension pushes government bond investments
‘The AHV fund has to invest more in government bonds, which overall reduces return potential,’ says Veronica Weisser of the UBS Retirement Innovation Hub
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FeaturesSecondary markets and innovation boost private equity liquidity
Liquidity has reduced significantly in global private capital markets. Whilst private equity-backed IPOs are up this year, overall exit value is down by 66% and there is currently a large backlog of unsold assets, of which 40% are four years or older. The cumulative sum of unsold assets sits at $3.2trn (€2.9trn), according to Bain. Recent data from Preqin shows that capital called has exceeded capital distributed by $1.57trn since 2018, highlighting the lack of free capital in private markets.
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NewsRWE Pensionsfonds strengthens cash flow investment strategies
The scheme has fine-tuned its strategic asset allocation after conducting ALM studies
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NewsEIOPA: European occupational pensions sector ‘remains resilient’
… but still sensitive to monetary policy developments
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NewsIreland’s Pensions Authority launches trustee guidance on liquidity risk
The Authority’s guide highlights LDI, leveraged LDI, sale and repurchase agreements, swaps, currency hedging and inflation hedging as strategies to look out for
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NewsTiming private equity investments puzzles pension funds
Counter-cyclical strategies investing in private equity lead to only marginal gains compared to investing a fixed amount per year in the asset class, according to study
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FeaturesPrivate credit secondaries come of age
Since the secondaries market came into existence, private equity has been the dominant asset class, but the tide is turning. It is finally time for private equity’s more youthful counterpart, private credit, to receive more of our attention. The private credit secondaries market borrows various elements from its older sibling, including best practices and deal structures, and it is now demanding the spotlight as awareness of the asset class increases.
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Special ReportManager selection: Solving the pension liquidity puzzle
Advisers and fiduciary managers are working as hard as ever to meet the liquidity needs of pension funds
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Opinion PiecesA new era for pension fund liquidity management
With inflation past its peak and central banks signalling monetary easing, investors can look forward to a prolonged period when interest rates will be at normal levels – barring any surprise decline in economic growth or other kinds of shocks.
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NewsDutch pension funds’ bond sales push down prices, study shows
The extra price drops are only visible for short-duration bonds that pension funds use most to meet margin calls for their interest rate hedges
