Pension Fund Investment Strategy and Management

Why select this training course?

Investment strategy development forpension plans and the administration of pension funds are both intricate processes, much like the global financial system. Rcademy’s professionals have diverse and proven pension experience, enabling them to deliver detailed knowledge smoothly and easily. This course encompasses the description and explanation of various issues in the pension field from the perspectives of liability and assets.

What is a pension plan?

It is described as a plan for retirement in which both employers and workers contribute to a pool of cash set aside to make future pension payments. Instead of sitting passively in bank accounts, the money is invested on the employee’s behalf to maximise their returns. When the employee retires, the profits created by the assets are used to supplement their income.

What are the two main pension plans types?

Two kinds of pension plans are the most popular: DC and DB. The DB ensures that the pensioner receives a consistent monthly amount for the rest of their lives. This amount can also be considered a lump sum at the time of retirement. On the other hand, an account for the pensioner is created throughout their employment.

The Pension Fund Investment Strategy and Management Training Course by Rcademy is designed to help you comprehend the fundamentals of pension funds and relevant investment strategies. Rcademy’s professionals take you from a very basic level and help you reach a highly-advanced level. At the advanced level, you will not only understand the pension fund investment strategies but also be able to make these strategies for your clients. Moreover, you will also understand and practice how to manage pension funds effectively. The Rcademy Professionals teach you all critical investment and management strategies that will assist you in performing best in your job.

Who should attend?

The Pension Fund Investment Strategy and Management Training Course by Rcademy is ideal for:

• Asset consultants
• Pension accounting staff
• Liability consultants
• Pension funds managers
• Pension fund investment strategy makers
• Pension investment consultants
• Pension scheme administrators
• Actuarial staff
• DB scheme designers
• Insurance company staff
• DC Scheme designers
• Pension risk specialists
• Pension product developers
• Regulators
• Asset allocators
• Pension governance specialists
• Individuals who are currently working or want to work in the DB or DC pension schemes
• Any individuals who want to pursue the pension field in the future

What are the course objectives?

After completing ThePension Fund Investment Strategy and Management Training Course by Rcademy, the trainees will be able to

• Discovering various types of pension risk and how to manage them
• Understanding the complexity of the annuity market
• Unfolding the dynamic approaches in the pension fund investment and management
• Increasing self-confidence and performing best in their roles and domains
• Comprehending the international crisis of pension
• Comprehending the pension schemes
• Discovering effective ways of measuring and modelling the liability of pension
• Learning how to manage pension funds using various tools and techniques
• Comprehending the pension funding policies and what roles these policies play
• Improving performance and decreasing risks of penalties
• Learning the difference between pension schemes and why these pension schemes are important
• Understanding the pension fund investment strategies

How will this course be presented?

The pension fund investment strategy and management course are meant to prepare individuals for the market by teaching them investment strategies and management via various tools and techniques. Practical lessons accompany this course’s theoretical knowledge because pension funding is all about practical work. So, the Rcademy professionals will explain the theories and then apply those theories in the real world.

What are the topics covered in this course?

Essential topics of the Pension Fund Investment Strategy and Management course that will be covered are mentioned below:

Module 1: Basics of Pension Funds

• What are the purposes and roles of pension funds?
• Roles of different parties (Investment managers, consultants, trustees, sponsors, and actuaries)
• Wealth sources in a pension fund
• Value creation in pension funds
• The primary pension equation
• Relationship between financial risk, asset allocation, and capital structure
• Pension funds as a company part
• Pension fund as a business

 Module 2: Pension Schemes

• DC
• DB
• Occupational
• Introduction to social security
• State pension schemes
• Features of the “pay-as-you-go” scheme
• Private pension
• Challenges related to private pension
• State social pensions and plans for reforming them
• Public pension
• Mandatory
• Means-tested
• Non-means tested
• Voluntary
• Hybrid defined benefit

 Module 3: Pension funds controversy: International

• Pension crisis: the UK, the USA, European
• The ever-increasing cost of pension schemes
• Governance structures and gaps in it
• Asia Pacific pension funds crisis
• Investment value chain ruptures
• Sovereign default risk
• Sovereign debt
• Pension fund deficits
• Increasing longevity
• Falling reals
• Increasing dependency ratios
• Nominal returns

Module 4: Annuities

• The annuity markets
• Types of annuities
• ILRIPs
• Annuity charges decomposition
• Stress testing of different ILRIPs
• Designing testing of different ILRIPs

 Module 5: Pension Fund Investment Strategies: Objective setting

• Elements to consider for pension fund optimal asset allocation
• Trustees and fund managers’ relationship
• Portfolio structure and benchmark
• Drawdown constraints for optimising the portfolio
• Strategic asset allocation while liabilities are present
• Diversification of portfolio
• Core Approach
• Satellite approach
• Explore approach
• Alternative assets’ significance
• Significance of inflation-hedging assets

 Module 6: Pension Fund management Dynamic 

• Liability matching strategies (duration matching, LDI, and cash flow matching)
• Upside strategies (portable alpha, dynamic contingent immunisation, and unconstrained investing)
• Sponsor risk limitation: liability hedging and absolute return

 Module 7: Considerations for designing schemes: DC

• Accumulation stage
• Risk confronted by DC members
• Charges
• Control variables and risk
• Distribution stage
• Optimal design of DC stage
• The annuitization

Module 8: Pension Funds Infrastructure investing

• Features of infrastructure investing
• Unique features
• Asset class: risks and rewards
• Opportunities and shortfalls
• Necessary steps for pension funds infrastructure

 Module 9: Risk Management

• What are the pension funds’ risks
• Various kinds of pension funds risk
• Funding risk
• Asset-liability risk
• Interest rate mismatch risk
• Solvency risk
• Surplus risk
• Tactical risk
• Tracking error
• Manager selection risk
• Downside risk measures
• Contribution risk
• VaR
• Counterparty credit risk

Module 10: Reporting pension scheme

• What are the main issues in reporting the pension scheme
• Development of a suitable mechanism for reporting
• Funding status
• Trustee reporting
• Reporting of performance
• Reporting of attribution
• Reporting management of risks