LONDON (10 July 2018) – Aon, the leading global professional services firm providing a broad range of risk, retirement and health solutions, has released a new white paper ‘Bank Capital Relief’ which focuses on a strategy which is becoming increasingly attractive for pension schemes seeking alternative sources of income.
Banking regulations brought in after the 2008 financial crisis resulted in banks being forced to take measures to repair their balance sheets and improve their capital ratios. Bank Capital Relief (also known as Regulatory Capital Strategy) emerged as a way for banks to improve this situation without having to sell assets or reduce their lending activity.
Alison Trusty, senior consultant at Aon, said:
“This paper is an introduction to a strategy which for investors who are willing to lock up capital for five years or more, has the potential for a relatively high and sustainable income of around 8% per annum.
“As with all actively managed strategies, care must be taken when evaluating and selecting a suitable manager, but it’s our view that these strategies – while niche – can aid diversification within a portfolio and allow access to income which is significantly uncorrelated with traditional equities and fixed income.”
‘Bank Capital Relief’ is available at http://www.aon.com/getmedia/29ad4f36-b4ab-4dfa-85e9-ed5978f37763/Bank-Capital-Relief-IDF-Paper.pdf.aspx
For further information please contact:
Colin Mayes Marina Sanchez
01372 733689 07535 693214
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