Italian tyre manufacturer Pirelli’s two main UK pension schemes have agreed longevity swaps covering £600m of pensioner liabilities, as researchers have suggested market volatility and insurer competition mean schemes could see attractive prices emerge on risk settlement products.
John Menzies considers change as activists increase split pressure
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August 30, 2016
Aviation services and distribution provider John Menzies is in talks with trustees over possible changes to its pension scheme, as the group considers splitting its two businesses under mounting pressure from activist investors.
Chair competence key as survey highlights inefficient meetings
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August 30, 2016
Any Other Business: Pension fund trusteeship is a time-consuming role with huge responsibilities covering a wide range of topics, but are the boards running schemes using their time wisely?
CPI and RPI gap at largest for five years as schemes eye law change
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August 25, 2016
The retail price index and consumer price index were the farthest apart they have been for five years in last month’s inflation figures, prompting debate that legislation could level the playing field for schemes using RPI for benefit increases.
BBC aims to drive down fees in private markets strategy
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August 22, 2016
The BBC scheme lowered its overall investment management fees by £3m over five years, while further increasing its significant exposure to private markets, a move the scheme says allows it to match liabilities at the same time as generating capital growth.
Monitoring crucial as transfer requests could creep up
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August 16, 2016
Defined benefit schemes could see increased levels of transfer quotation requests as low gilt yields push values higher. Experts have said trustees should monitor request numbers and manage their liquidity accordingly.
Governance is key as dispute rocks asset management industry
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August 12, 2016
Research suggesting that hidden fund fees are the “Loch Ness Monster of investments” has sparked the latest round of a bitter row between the Investment Association and pro-transparency groups.
Select committee seeks views on expanding regulator powers
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August 9, 2016
The Work and Pensions Committee is to consider amending the powers of the Pensions Regulator and the make-up of the Pension Protection Fund as part of its ongoing inquiry into the Pension Protection Fund and the Pensions Regulator following the collapse of BHS.
Uncomfortable truths? Pensions Institute takes aim at employers
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August 8, 2016
From the blog: It appears another 'unacceptable face of capitalism' was revealed last week, with the Pensions Institute launching an indictment of employers who “milk and dump” their pension schemes.
Keith Wallace, president of The Association of Corporate Trustees, identified 35 ways an employer can extract surpluses or dodge pension obligations in a paper written for the Institute.
While the various tricks for milking surpluses detailed in Wallace’s paper are unlikely to be repeated in today’s deficit-laden world, the variety of methods for shedding pension liabilities makes for more troubling reading.
Hedged Aviva schemes survive rate cut
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August 8, 2016
Pension schemes sponsored by insurance giant Aviva have reported a marked increase in their accounting surplus owing principally to falling interest rates, but experts warn of further pain for schemes which are not hedged against interest rate risk.