The marcus evans European Pensions & Investments Summit celebrated its tenth anniversary, and most successful event to date, last month at the Fairmont Le Montreux Palace in Montreux, Switzerland. The compelling 2010 programme provided a range of interactive platforms and case studies offering diverse perspectives on pension fund management and current economic trends.

Despite volcanic ash cloud complications, almost all registered attendees made their way to Montreux to participate in Europe’s leading pensions and investments forum. The event opened with a series of case studies from some of the world’s largest pension funds.

One of Germany’s most widely quoted experts on public pensions offered insight on current risk management measures as enforced by national regulators, comparing the German tailored approach to the European demand for a one-size-fits all solution. A veteran of the Swedish pensions system put a controversial topic forward when he suggested that risk adjusted returns can be best achieved by implementing active management. His practical examples for developing and managing an alpha mandate were well appreciated by some of the more conservative members of the audience. Other case studies focused on financing and product design. With the debate over DC versus DB still ongoing, it was worthwhile to learn a UK director’s view on the evolution of European pension schemes. An executive member of one of Finland’s leading public pension institutions shared his personal view on taking an adaptive approach to offsetting longevity, embracing dynamic asset allocation to preserve pension promises.

The shift away from static asset allocation was also highlighted by a managing director within one of Europe’s largest and most sophisticated institutional investors. Identifying innovative risk premium pockets would be key to profitability in his opinion, given an environment shaped by a new understanding of risk. However, financial innovation and the use of complex instruments add counterparty risk, claimed an esteemed law school professor. In his speech, he assessed the need for regulatory response to the financial crisis and asserted that complex investment products were not its cause. A contrasting view was voiced by another highly cited academic. Stating that financial instruments complexity is not well understood by the market, he highlighted this as an issue not being addressed by regulatory changes. He further discussed the mechanism of asset fire sales and how they loop back into liquidity and funding challenges.

In the midst of one of the UK’s most controversial elections, it was enthralling to hear from one of its key pensions authorities. Representing the leading body for workplace pensions, this speaker shared both insight and foresight in her candid assessment of the nation’s key pension challenges and the impact of government reforms. Taking a broader pan-European view, the Regulatory Reform Forum delved deeper into upcoming legislative changes, their ramifications for investment performance and financial stability. The panel touched upon mark-to-market accounting, a major source of balance sheet volatility for pension funds. This issue was addressed in greater detail by the Actuarial Insight Forum, which unveiled expert perspectives on impending developments in accounting methods and provided a comprehensive discussion on the future of fair value.

Of the many event highlights, the keynote presentation from a recently retired European Commissioner certainly made an impression. This straightforward presentation left the audience with a sobering illustration of what goes on behind the closed doors of the regions’ regulators. Audience members took advantage of the opportunity to ask questions of this influential policymaker, resulting in some interesting discussion on the current and future state of the financial regulatory framework for the internal market.

It was a true pleasure hearing from Former Prime Minister Tony Blair who provided unrivalled insight into the geopolitical issues affecting the global economic arena. Tony Blair’s comments were preceded by a heated debate on macroeconomic developments during the Global Economist Forum, where prominent economic thinkers discussed provocative topics. The panellists elaborated on the prospect of euro-dollar parity by 2011, the Greek sovereign debt problem and the repercussions of an unlikely restructuring, as well as the changing role of rating agencies.

The summit agenda included unparalleled opportunities for interaction on some of the pension and investment industry’s most pressing challenges. Do not miss the opportunity to join us in 2011!

Contact:
Sarin Kouyoumdjian-Gurunlian
Press Manager
marcus evans, Summits Division
Tel:
Email: press@marcusevanscy.com