Survival of the Fittest: Dealing with Deficit in Pension Funds

Jerry Moriarty, Director of Policy from Irish Association of Pension Funds, joins Finance IQ to discuss deficit in pension funds and key approaches for survival when selecting service providers.
By: IQPC - Helen Winsor
 
March 21, 2012 - PRLog -- Finance IQ: £120 billion recently has been wiped off the value of pension funds in just a month during recent market volatility. How would you say pension schemes are dealing with being in deficit, and also, how are they managing their liability, Jerry?

J Moriarty: I think, unfortunately for pension funds, they’re getting used to dealing with deficits, because they’ve been in that situation now for a few years. Clearly the markets have been extremely volatile, and that is something the pension funds are learning to deal with. It’s difficult sometimes, because markets are very volatile and that has a severe impact such as the example you gave, but at the end of the day pension funds are long-term investment, so it’s important to keep an eye on the long-term as well. I think what most funds are doing in most countries is looking at reducing their liabilities, limiting their liabilities, but also using trigger points to take opportunities as they arise, as markets recover and move into less volatile investments.

Finance IQ: What does the future hold for pension schemes with this in mind?

Jerry Moriarty will be among the speakers at Liability Driven Investment Europe 2012, due to take place on 27 March 2012 in Amsterdam. For more information about this event please visit: email enquire@iqpc.co.uk or call 0207 368 9300.

Download the full interview here - http://www.ldieurope.com/Event.aspx?id=625242&utm_campaig... &utm_medium=HWOnline&utm_source=Linked In&MAC=HW_PROMO_12219.004_LI
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Source:IQPC - Helen Winsor
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Tags:Liability Driven Investment, Ldi, Pension
Industry:Financial
Location:England
Subject:Reports
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