Controlling funding status volatility has topped trustees’ wish lists for 2013, according to an SEI poll.
The survey of more than 30 executives overseeing UK corporate defined benefit plans with assets ranging from £15m to over £1bn, found 64% of respondents said controlling funding volatility was their most important wish for the coming year.
In second place was cutting costs, which was selected by 33% of respondents.
The survey also found a majority (62%) of trustees remain neutral in their economic outlook for 2013.
SEI institutional group director, European advice, David Hickey said costs often took a “back seat” to volatility after a period of poor performance.
He added: “Against a backdrop of generally poor funding levels and continued economic uncertainty, it is only natural that trustees singled out controlling funding level volatility as top of their wish list for 2013.”
“A challenge for trustees in 2013 will be to identify growth asset and liability matching strategies that can manage volatility and yet generate return by exploiting today’s market conditions.”
Hickey added: “A further challenge will be to create a governance model which allows Trustees to act with speed and dexterity.”
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