The Weekly Wrap: August 30 edition

Renewable energy lifts hopes of a safe return

FTfm: Investors are turning to renewable energy, such as solar and wind, to offer sustainable, inflation-linked returns. Europe, Canada and China have begun to guarantee a fixed price for every unit of electricity generated. These typically run for 20 to 25 years and are inflation-linked. 

EU pension proposals ‘crippling’ for the UK

FTfm: Plans by the EU to force companies to plug deficits of corporate pension schemes would cost the UK 46 per cent of GDP, according to the consultancy LCP. This would “cripple” the British economy, it said. 

France avoids radical overhaul in pension reforms

FT: The French government has unveiled a reform of its pension system, which will see an increase to the level and duration of contributions. Both employee and employer contributions will rise progressively over four years, an increase totalling 0.3 percentage points by 2017. 

Bank of England’s Mark Carney seeks to win over guidance sceptics

FT: Governor of the Bank of England Mark Carney again attempted to convey to investors that he intends to keep interest rates low for the next three years. He reiterated that policy could be eased further if markets fail to respond. 

US fund groups wrestle with derivatives reforms

FTfm: US asset managers and pension funds are struggling with implementing derivatives reform written into section VII of the Dodd-Frank regulation, which will see derivatives cleared through a central clearing house. Fund houses have complained about the difficulty of complying with the clearing and reporting requirements. 

Most read on pensionsweek.com

Rentokil reports 4% opt-out rate in first AE wave
How BBC scheme cut £750m off its funding deficit
What the ABI’s annuity tool means for your scheme
Diversity of thought needed on trustee boards
TfL weighs up fee bump from strategy shift

Social media comment of the week

In response to Pensions Week's story on Rentokil's low opt-out rate Ceridian's Jeremy Levene asked:

@JeremyLevene apathy was the main reason given. Interesting nevertheless.

— Pensions Week (@pensionsweek) August 27, 2013