http://www.pensions-expert.com/Investment/Weekly-Wrap-January-17-edition
Investment

Weekly Wrap: January 17 edition

By Tom Dines | January 17, 2014

A round-up of pension and investment stories published across the FT group – from concerns over what an independent Scotland would mean for UK national debt to whether or not size is not a factor when recommending hedge funds.

Investors fear impact of Scottish Yes vote

Week in numbers 

  • 2.5% increase in Barclays index for long-dated Treasury bonds.
  • 68% of industry assets are owned by hedge funds greater than £3bn in size.
  • More than 400,000 people buy an annuity each year.

FT: The UK Treasury has announced it will honour Britain's outstanding national debt "in all circumstances". But many are still worried the UK could be forced to shoulder more than £100bn of debt that an independent Scotland could reasonably be expected to pay. The Scottish government insists it will pay a "fair share" of UK liabilities.

Funds raise exposure to long-dated bonds

FT: Big gains in the US equity market during the past 12 months has led to an increase in long-dated bonds – up 2.5 per cent this month – from pension schemes trying to consolidate growth. Slow growth in new US jobs also suggested the US Federal Reserve may delay its tapering plans

Carney's lucky streak continues as UK inflation slows to 2%

FT: Inflation has hit the Bank of England's target for the first time in more than four years, relieving pressure on governor Mark Carney to raise interest rates. Carney has faced growing pressure to scrap his "big idea" forward guidance, which committed the BoE to holding interest rates until the jobless rate fell to 7 per cent.

Small hedge funds told size doesn't matter

MandateWire: Investment consultancies Mercer and Hymans Robertson have said they are size-agnostic when it comes to choosing hedge funds for pension scheme clients. Large funds still control most of the assets, though. At the end of Q3 2013 hedge funds greater than £3bn in size controlled more than 68 per cent of industry assets, according to data provider HFR.

Annuity directory 'biased' against advice

FT: The Pick-A directory, a new service aimed at helping those approaching the retirement shop-around has been questioned over whether it steers consumers away from independent advice. More than 400,000 people a year exchange their pension savings for an annuity, but most do not search for a better deal than the one offered by their pensions saving company.

Most read on pensions-expert.com

Schemes urged to lock in gains as market improves
Three steps to reduce the cost of pension consolidation
Pensions Expert: Informing scheme decisions
Why Pensions Week is becoming Pensions Expert 
Findel uses auto-enrolment to chisel down costs

This week's social media comment

 
Print