Smaller UK schemes struggling to close funding gap: Goldman Sachs

first_imgImprovements in UK defined benefit (DB) scheme funding have masked challenges facing smaller pension funds, according to Goldman Sachs Asset Management (GSAM).The fund manager reviewed DB schemes attached to the UK’s largest 350 listed companies and found that smaller schemes – those with less than £500m (€557m) in assets – tended to experience more volatility regarding their funding position.Schemes with less than £100m had a funding level on average 15% lower than those with £5bn or more, GSAM reported.The group said the data reflected small schemes “have not managed their risk exposures as effectively as larger schemes, likely due to a lower degree of governance”. Larger schemes have adopted liability-driven investment strategies, diversified their portfolios and implemented currency hedges, GSAM added. However, these strategies were increasingly available to small schemes, the asset manager said.David Curtis, head of UK and Irish institutional business at GSAM, said: “While the funding rate of smaller pension schemes improved this year, we see much greater volatility in their funding position than larger schemes who have consistently improved their funding level every year of the four years we have run our FTSE 350 study in the UK.“This highlights that larger schemes better implement risk management strategies that protect and advance pension scheme solvency consistently.”Although limited to FTSE 350 companies, the study had implications across the UK’s pension system GSAM said, as roughly 87% of private sector schemes had less than £500m in assets.Overall, UK schemes have experienced a positive year in terms of aggregate funding positions. Multiple estimates have reported that assets have grown faster than liabilities during 2018, with FTSE 100-listed companies hitting 100% funding for their DB schemes earlier this year.However, Shoqat Bunglawala, head of GSAM’s global portfolio solutions group, warned that risks were rising. “In the next year alone, schemes are likely going to have to navigate higher interest rates in some markets, continued conflicts around trade, Italian budget negotiations and other macroeconomic risks that come with being in the late stages of the economic cycle,” he said.“UK schemes in particular will be faced with their own challenges including the outcome of Brexit, potentially increasing interest rates and a volatile currency. In this environment, we think an enhanced focus on risk mitigation and a dynamic approach to asset allocation will prove invaluable.”  Source: JLT, Mercer, PPFlast_img read more

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Bumi Armada Scoops Filanovsky Field Pipelay Gig

first_imgBumi Armada’s wholly owned subsidiary Bumi Armada Caspian has signed a supplementary agreement with Lukoil for additional engineering, procurement, construction and installation (EPCI) scope. The additional scope will involve Bumi Armada’s Subsea Construction assets to lay subsea pipelines and undertake post trenching and back-filling works on sections of the Filanovsky field in the Russian sector of the Caspian Sea.The works are expected to be completed in the second half of 2018 and the total contract value is USD 134 million (approximately RM576 million).Leon Harland, executive director and CEO of Bumi Armada, said: “Bumi Armada has been working with Lukoil in the Caspian since 2012 and this Supplemental Agreement highlights the continuing strong working relationship with our client, and our proven track-record to deliver high quality Subsea Construction services in the Caspian Sea.“The work involved in this additional contract with Lukoil relates to the installation of approximately 20 km of pipelines in the Filanovsky field in the Russian sector of the Caspian Sea and where our team will use both the Armada Installer and Armada Constructor vessels. The project preparation activities have been started and completion of the scope is expected before the end of 2018.”last_img read more

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Melodie Jane Keith

first_imgMelodie Jane Keith, 61, of Greendale, Indiana, passed away Monday August 13, 2018 in Greendale, Indiana.She was born April 18, 1957 in Milan, IN, daughter of the late Gerald and Marilyn (Tibbs) Lutherbeck.Melodie worked as a Laborer for Campbell Hausfeld, with over 10 years of service.She was a member of the New Life Southern Baptist Church. Melodie taught aerobic classes for several years, she loved Christian music and southern gospel music. Melodie collected angels, but her greatest joy was her family.Melodie is survived by her loving spouse of 43 years Robert Keith, son, Brandon Keith of Danberry, CT; siblings, Jerry Lutherbeck of Aurora, IN, Susie (Joe) Halcomb of Versailles, IN, Tammy (Danny) Brookbank of North Vernon, IN, Ricky Lutherbeck of Lawrenceburg, IN, Wendy (Mike) Goodpaster of Lawrenceburg, IN; grandchildren, Kyle & Adriana Keith.She was preceded in death by her parents, and a brother, Randy Lutherbeck.A memorial service was held on Saturday, August 18, 2018 at the New Life Southeran Baptist Church, 19936 Schaeffer Rd., Sunman, Indiana at 6:30 pm with Brother Dwayne Barrows officiating.Contributions may be made to the New Life Southern Baptist Church. If unable to attend services, please call the funeral home office at (812) 926-1450 and we will notify the family of your donation with a card.Visit: www.rullmans.comlast_img read more

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