Programme List - Risk Reduction Forum 2019
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Programme

08:45 – 09:30

Delegate registration and networking with refreshments

09:30 – 09:35

Chair’s welcome and opening remarks

Professional Pensions

09:35 – 10:00

Opening Keynote: To be announced

 

10:05 – 10:30

Cashflow planning for the long term

The need to “pay all pensions as they fall due” has been a key driver of cashflow-driven investing, but there’s no one-size-fits-all approach when considering the best strategy for your scheme. CDI encompasses two categories of solutions: cashflow matching – which much of the investment industry has so far focused on -  and cashflow aware investing. This session will explain the differences between the two, and look at how individual scheme characteristics (size, maturity, covenant strength, funding level) affect a scheme’s approach to CDI. We will also consider the impact of increasing levels of negative cashflow.

Schroders

10:35– 11:00

The return of the buyout

Reduced insurer pricing and improved scheme funding positions combined with a significant uptake in liability management through transfer values have had a huge impact on the cost of full buyout for many schemes. Schemes that were hoping to reach buyout in a 10 to 15 year timeframe are finding that they could be within scope now if they conduct a combine a suitable liability exercise with seeking out the best buyout pricing. So what is driving the resurgence in buyout, and how can schemes maximise their own opportunities to get there?

Mike Edwards, Partner, Aon

11:00 – 11:25

Morning networking break with refreshments

11:25 – 11:50

The Trustee Conundrum: delivering required returns in risky environments

During 2018, market volatility returned. As 2019 looks equally uncertain, Phil will explore ways to build robust portfolios and deliver more certain returns for your members in uncertain times.

Phil Redding, Head of UK Business Development, Cardano

11:55 – 12:20

Postcards from the edge: sponsor covenant in a post-Brexit landscape

Covenant risk is one of the biggest issues for pension schemes, and arguably the hardest to quantify. The typical UK DB scheme sponsor is rated BB; historical default rates suggest that approximately one third of BB companies will default within 20 years, potentially leaving schemes without a major source of contributions but still with substantial liabilities. With an uncertain landscape ahead, this session will consider how schemes can strengthen their covenant and align investment strategies accordingly. It will also look at the issues facing schemes with sponsor affiliations beyond the UK.

12:25 -12:50

Dealing with data

Data has never been more important to trustees and pension managers. The quality and accuracy of members' data has played a pivotal role in everything from auto-enrolment, GDPR compliance, the development of the dashboard and is key to a successful outcome from de-risking exercises like buy ins/buy outs, PIE, longevity swaps and trivial commutation. Yet data also poses a key security risk, with hackers and scammers increasingly targeting schemes. This session will look at key considerations for a robust data strategy, and best practice for cyber security and fraud prevention.

ITM

12:50 – 13:50

Networking buffet lunch

13:50 – 14:15

Afternoon Keynote: To be announced

 

14:20 – 14:45

DB Transfers: Out of the frying pan and into the fire?

DB transfers have been one of the big stories of 2018, with a total payout of around £20bn predicted for the year. Members are reportedly routinely offered 25 to 30 times their annual pension as a lump sum transfer value by schemes racing to reduce their liability risk. However large numbers of transfers on generous terms could undermine schemes’ funding positions, and increase the risk of remaining members not getting their full pensions. This session will examine the optimum conditions for transfers as part of a de-risking strategy and flag key considerations for trustees when setting buyout pricing.

14:50 – 15:30

Panel: Consolidation: The answer for failing smaller schemes?

The highly fragmented DB pensions sector is ripe for consolidation; the PPF’s Purple Book reveals that of the 5,450 DB schemes listed, 36% have less than 100 members and another 44% have less than 1,000 members. TPR has repeatedly highlighted the regulatory challenge posed by small DB schemes, and consolidation was a key focus of the DWP’s recent DB White Paper. In this session our expert panel will discuss the pros and cons of consolidation, and ask if claims of improved funding, economies of scale and better governance offer better outcomes than more traditional de-risking exercises such as insurance transactions.

15:30 – 15:35

Chair’s closing remarks and close of conference

Professional Pensions