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TM needed for buyouts while equities volatile

11 September 2011

Although DB pension buyout prices remain stable, equity market volatility means that transition management is essential, according to Mercer

Read more: Transition management

Mercer, a consultancy, has warned pension funds that recent volatility in the markets following the Eurozone sovereign debt crisis and US debt downgrade has shown the importance of transition management and the value devising a strategy to ensure they are not caught out by future market movements.

Despite the market turmoil, the price of pension schemes buyout with an insurer has remained broadly stable, says Mercer. While bond yields, which...