Date: Thursday 21 October 2021 (09:00-09:50)
When the Governor of the Bank of England starts asking when the locusts are arriving and warns of hard times ahead the Trustee agenda is going to be become interesting.
Whether working with companies still recovering from the impact of the pandemic or factoring in what the noises around interest rate and inflation mean to their strategic planning, Trustees and their advisers are being called upon to consider increasingly innovative approaches.
We are delighted to welcome our guest speakers Matt Harrison, Managing Director of Lincoln Pensions and Keith Guthrie, Deputy Chief Investment Officer of Cardano to share their thoughts on what Trustees can do to help meet challenging economic times, and rising interest rates combined with inflationary pressures.
Scheme funding levels have improved with many schemes approaching full funding on their technical provisions’ basis. But this does not mean that trustees can be blasé about the risk of employer covenant deterioration over the medium to long-term. Matt Harrison will discuss how this has resulted in a resurgence of innovative contingent asset structures, like surety bonds, letter of credit and escrow accounts.
For the last 35 years we have seen inflation and interest rates falling. Now suddenly we are seeing an inflation resurgence. Central bankers believe this inflation is transitory, but it’s possible that inflation will be more persistent over the next 10 years. Keith Guthrie will discuss why inflationary pressures might be building and consider how trustees could prepare their portfolios in a sustainable way.