Insourcing decision-making: Creating the data infrastructure

An investment office data solution is built on the principle of investment decision making supported by analytical platforms that can describe risk and return across multiple asset classes. It is not a pipedream but something that is possible today as a result of the significant investment in technology made by securities services providers.

The economic environment continues to be very challenging for Defined Benefit pension funds, with record low yields and low interest rates placing on- going pressure on investment returns and funding ratios.

Following the UK’s vote to leave the EU, the bank of England has cut interest rates by 25 basis points to a record low of 0.25 per cent and gilt yields have plunged. The funding ratio of those 5,495 pension funds in the UK’s Pension Protection Fund (PPF) 7800 Index, decreased from 81.5% at the end of May to 77.4% at the end of July. Meanwhile, the Dutch Central Bank reported Dutch pension funds’ aver- age policy funding ratio was 99.6% at the end of the second quarter of 2016, down 2.3% from the preceding quarter.

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