Superfunds

There were a few reports out over the weekend, e.g. here, about the The Pensions Regulator’s new interim guidance on superfunds.

The sheer lack of detail here is breathtaking. No formula,  no apparent regime for internal model approval, no regulatory returns.  Of course, they will “need to be comfortable that the investment and risk models superfunds intend to use are appropriate, robust and capable of accurately measuring and monitoring risks that the scheme is exposed to”, but no further details given yet.

The requirement to demonstrate “expected returns for various asset classes, attributable to the scheme and in the capital buffer” is ominous, but what else did you expect?