Perspectives

We’re watching the COP 27 discussions from afar. In some respects, there were both reasons to be optimistic and pessimistic going into COP27. Here are our reflections on what has been going on.

While many pension funds have made commitments to integrate ESG issues into their scheme journey planning, we think that there is further work to do. Here we provide a comprehensive overview of everything a trustee needs to know about how to incorporate sustainability into journey planning.

Cardano Group response. The draft Regulations are heading in the right direction in seeking to support trustees and employers in planning their scheme funding over the longer term and we are supportive of the intention to improve risk management through covenant-driven investment and funding strategies and a long-term objective of reducing reliance on covenant.

Whilst insurers are exposed to the same array of risks as DB schemes, we expect them to be better placed to deal with the recent market turmoil than most pension schemes. Here we explain why.

Eyes are on investments and pension scheme liquidity, what does this mean from a covenant perspective? Here are four things trustees can be doing right now.

Pension risk transfer market: Entering unchartered territory. The UK pension risk transfer market is arriving at a unique juncture, driven by evolving supply and demand factors, regulatory change, and macroeconomic and capital market volatility. The impact on end game strategies could be far reaching.

2022 began with the hope of reduced market uncertainty: COVID-19 has been on the decline, and a general pick-up in economic activity has been observed. In practice, the year is being shaped by macroeconomic and geopolitical headwinds, and against the prospect of stagflation over the horizon.

A corporate transaction can have a material impact on the employer covenant, future funding plans and risks faced by a pension scheme. To help trustees navigate such events, we have produced three short videos for you to watch

Deal-making set to continue despite headwind. Macroeconomic headwinds, compounded by the invasion of Ukraine by Russia, have led to more caution in the M&A market, both in the UK and globally.

ESG Perspectives: A 360° view of key ESG issues and opportunities for corporates in 2022. What does ESG really mean for corporates in 2022? We have teamed up with leading ESG advisors at Hogan Lovells, Georgeson and Kekst CNC to draw together our insights in a guide that provides a 360° response to this question, and to help clients respond holistically to the ESG issues and opportunities they currently face.

The Pensions Regulator (TPR) published its Annual Funding Statement (AFS) setting its expectations of trustees and sponsors for the year ahead. Covenant remains a key focus as trustees are encouraged to focus on current challenges and longer-term risks. Emily Goodridge and Nigel Sillis summarise the key points here.