Pensions Week articles from January 2005

Pensions Week archives from January 2005

News: ISS gets negative vote for proxy voting fiasco.
January 17, 2005... An electronic shareholder voting service has come under fire for failing to carry out proxy voting instructions for a UK pension fund client. Institutional Shareholder Services (ISS), the US-based proxy voting firm which has business links...

News: Segars set to improve pensions policy at NAPF.
January 17, 2005... Pensions expert Joanne Segars has been appointed to the newly created position of director of policy at the National Association of Pension Funds (NAPF). Segars will leave her post as head of pensions and savings at the Association of...

News: SBJ takes the helm of Brown Shipley's group corporate pensions business.
January 17, 2005... An insurance and consulting firm has acquired the entire corporate pensions business of private bank Brown Shipley after it pulled out of the group pensions market. SBJ Group, which purchased the business for an undisclosed sum, will...

News: John Lewis changes management strategy in push for better returns.
January 17, 2005... The GBP1.2bn pension trust for high street retailer John Lewis has dropped Knight Frank as its property adviser in an attempt to push for higher returns. The GBP156m brief, mostly comprising direct holdings, has gone to DTZ, with a target...

News: More risk budgeting needed by closed final salary schemes.
January 17, 2005... Closed final salary pension schemes need to tighten their belts as they feel the pinch of poor investment returns and rising longevity, according to consultants. Adrian Mathias, partner in Watson Wyatt's benefits practice, said: "In...

News: Myners' principles update receives lukewarm response.
January 17, 2005... The government's update of the Myners' principles has received a cautious welcome from investment consultants. Consultants said they support the government's view that progress has been made by the investment industry on its adherence to...

News: Unison organises strike over public sector scheme changes.
January 17, 2005... One of the UK's biggest unions, Unison, has organised mass strike action against changes to public sector pension schemes. The planned protest, which will take place on 18 February, follows general secretary of Unison Dave Prentis' letter...

News: Wicks blows the light out on claims of insufficient funding for PPF.
January 17, 2005... The pensions minister, Malcolm Wicks, has dismissed claims that the pensions protection fund (PPF), designed to protect pension schemes that go into wind- up after April this year, is insufficiently funded and riddled with problems. "I am...

News: ICI increases its exposure to emerging debt.
January 17, 2005... The ICI pension fund has appointed Ashmore Investment Management to manage a GBP65m emerging market debt mandate. The fund manager has also been selected to manage a GBP5m emerging market debt portfolio for the ICI Specialty Chemicals...

News: Aberdeen seeks actuary for 2005/2008 valuations.
January 17, 2005... The GBP1.2bn Aberdeen City Council pension fund has gone out to tender for an actuary to carry out its 2005 and 2008 valuations. The scheme previously used Hewitt, which has been invited to re-tender. The appointed actuary will also be...

News: Pickering joins PRA's board of trustees.
January 17, 2005... Alan Pickering has been appointed to the board of trustees of the Pre- Retirement Association (PRA). Pickering, a partner at actuarial firm Watson Wyatt, is a former chairman of the European Federation for Retirement Provision, and of the...

News: Bedfordshire looks for tactical asset allocation manager.
January 17, 2005... The GBP770m Bedfordshire County Council has gone out to tender for a global tactical asset allocation mandate. The fund aims to achieve a return of 4-5% a year above the consumer price index or equivalent. A portfolio of up to GBP50m...

News: North Yorkshire, Essex Council tender for bonds mandate.
January 17, 2005... North Yorkshire Council pension fund and Essex County Council have put out to tender for a bonds mandate. The GBP824m North Yorkshire scheme is looking to appoint an investment manager for GBP150m global bond portfolio. The scheme's...

News: Future looks bright for liability-driven investment and hedge funds.
January 17, 2005... Liability-driven investment and hedge funds will be the biggest growth areas for pension funds, according to European investment managers. Over the next three years, fund managers anticipate an increased demand for tactical asset...

News: SSGA opens multi-maturity LPI swap shop for smaller schemes.
January 17, 2005... State Street Global Advisers (SSGA) has unveiled a pooled fund range for smaller and medium-sized pension schemes seeking to match their defined benefit liabilities. The Pooled Asset Liability Matching Solution (Palms), which has been...

News: PCB pays settlement of over oe2m to Cheney.
January 17, 2005... The Pensions Compensation Board (PCB) has made a capital settlement of over GBP2m to the Cheney scheme. The final settlement of the claim was for GBP2,376,754, bringing the total compensation payment to GBP2,886,167. Prior to the...

News: Get your friendly guide to the pensions tax regime.
January 17, 2005... Corporate pension provider Friends Provident has issued a guide to the pensions tax regime. The 56-page guide is aimed at professional advisers and covers the Finance Act 2004 tax legislation on pension contributions and benefits from 6...

News: Letter - Donate your unwanted phones and cartridges for tsunami appeal.
January 17, 2005... No doubt your readers have been watching the tsunami news reports, stunned at the devastation following the massive earthquake off the coast of Sumatra. I am writing to let your readers know about another way they can help - by donating...

News: Pensions have bumper year in '04.
January 17, 2005... Pension funds saw solid returns of 11% in 2004 following strong equity performance. Research by performance measurer, The WM Company, showed strong equity performance, especially in the UK and Europe ex-UK, and drove gains of around 5.6%...

News: Scottish Widows makes a clean contract sweep.
January 17, 2005... Third party administrator Scottish Widows has bagged a number of pension fund contracts to provide administration, actuarial and documentation services. The firm has replaced Watson Wyatt as administrator for the Prestoplan scheme, JLT as...

News: TUC releases corporate governance guidelines.
January 17, 2005... The Trades Union Congress (TUC) has called for greater disclosure on pay and pensions of company directors and other employers to shareholders. Guidelines released by the TUC last week stated that as well as information on pay and pensions...

News: Standard Life invites users to enter the adviserzone.
January 17, 2005... Standard Life is providing additional online services to independent financial advisers. The web service - adviserzone - will provide product information to registered users, as well as to a broader adviser community, to reflect the needs...

News: Thompson opts for early retirement from Mercers.
January 17, 2005... Consultant Mercer Human Resource Consulting has lost a handful of senior staff, including Peter Thompson. Thompson, who is worldwide partner at Mercers, has taken early retirement alongside some other senior actuaries. Mercer said the...

News: Paragon enters the manager-of-managers arena.
January 17, 2005... The Paragon Pension Plan has appointed Northern Trust Global Investment's (NTGI) manager-of-managers business, Northern Trust Global Advisors, to run an GBP18m mandate in a range of its equity and fixed income manager-of-managers funds. ...

News: Profits soar for fund managers despite poor Q3 performance.
January 17, 2005... The fund management industry has seen a sharp recovery after a summer slump despite dour performance and widespread job cuts across the financial services sector. Profits have shot up in fund management for the fourth quarter of 2004, with...

News: Personal debt takes priority over pension savings for many.
January 17, 2005... Winning the lottery and paying off debts are far more pressing aspirations for people than sorting out their pensions, according to research. Ten times more people (32%) consider paying off their debt as a top financial priority, compared...

News: New year's resolutions: stop smoking, plan for retirement...
January 17, 2005... The government has urged employees to set a new year's resolution to make planning for retirement a priority. Pensions minister, Malcolm Wicks, warned that too many employees are not taking advantage of company pension schemes. The...

News: Left Field - The Blairiness of pensions.
January 17, 2005... If the prime minister wishes to hold an election early in May, he will need to make such an announcement a month earlier. That gives him three months to decide on the election manifesto. During this time, he must set the parliamentary draftsmen...

News: Simplification opens the door to Sipps.
January 17, 2005... The potential market for self-invested personal pensions (Sipps) could shoot up by two million people due to pensions simplification, according to research by a risk management adviser. Duncan Howorth, managing director at Jardine Lloyd...

News: Proposed NHS scheme changes spur unhealthy response from employees.
January 17, 2005... NHS workers have slammed proposals to change their pension scheme which could see retirement age increase from 60 to 65, as well as a move away from final salary to career average. Consultation on reviewing the NHS scheme began last week...

News: Ombudsman watch.
January 17, 2005... Good news / bad news I began the new year with another piece in front of me from the Center for Retirement Research at Boston College, and with lunch with my niece, Rachel, a third year undergraduate thinking of starting out on a career in...

Governance watch: FSA gives listing rules regime a modern twist.
January 17, 2005... The Financial Services Authority's (FSA) consultation on the latest listing rules regime ended last week (14 January). The FSA, through its UK listing authority arm, has slowly been proposing changes designed to modernise the listing regime and...

Spotlight: Showdown at the last chance saloon.
January 17, 2005... "We are in a last chance saloon for voluntarism," warned Peter Davis, chairman of the Employer Task Force (ETF), in its report to the government. Fighting talk. The ETF report, like other government commissioned pension reports, swaggered...

Opinion: Leader - Make way for the next generation of investment products.
January 17, 2005... For pension fund trustees covering investment matters, the knowledge required for informed decision-making grows all the time. One factor increasing the investment syllabus is the emergence of a new generation of investment products...

Opinion: Personal view - The simple path to pension enlightenment.
January 17, 2005... Much of the focus on the Inland Revenue's simplified tax regime for pensions has been on its effect on senior executives and, in particular, how to deal with individuals whose pension promise will exceed the initial GBP1.5m lifetime allowance...

Opinion: Inside view - The ripple effects of the distance marketing directive.
January 17, 2005... A piece of regulation came out in October 2004 to further protect private investors. It is called the distance marketing directive (DMD) and it has been designed to stop people being entered into financial contracts without their express...

People on the Move: Delderfield to transform pensions at Bevan Brittan.
January 17, 2005... Law firm Bevan Brittan has appointed Gary Delderfield as a partner to establish a dedicated pensions resource. Working closely with Birmingham lead partner Sara Woffenden, Delderfield will be responsible for supporting the employment,...

People on the Move: Threadneedle Investments brings in Bourdon's bravura.
January 17, 2005... Threadneedle Investments has appointed Paul Bourdon as director of investment solutions. This newly created role will see Bourdon take responsibility for ensuring Threadneedle has the right financial building blocks and types of instrument...

People on the Move: Hamre joins IMS.
January 17, 2005... Independent multi-manager specialist IMS has appointed Standard & Poor's research director Hans Hamre as director of research. Hamre's main responsibility will be working with the research team to further develop and expand its fund manager...

People on the Move: Garcia appointed by T Rowe Price.
January 17, 2005... T. Rowe Price Global Investment Services has appointed Philip Garcia as vice president of the client servicing team. Garcia joins T. Rowe Price from Towers Perrin where he was head of UK investment consulting and has over 20 years'...

News Just In... : Government taken to task over PPF and FAS.
January 17, 2005... The National Association of Pension Funds (NAPF) has urged the government to come clean over its pensions policy as fears mount over the adequacy of the pension protection fund (PPF) and the financial assistance scheme (FAS). Terry...

News Just In... : Conservatives come under fire for refusing to sign EDM40 register.
January 17, 2005... The Pensions Action Group has slammed Conservatives that have refused to sign the early day motion (EDM40) register calling for greater funds into the financial assistance scheme (FAS). Alan Duncan, MP for Rutland & Melton, and Philip...

Ciba workers set to strike over loss of pension top-ups.
January 24, 2005... Outraged workers at a Ciba Specialty Chemicals plant have voted unanimously for strike action after their pension top-ups were scrapped. The 316 workers of the plant in Clayton, which is set to close, not only face losing their jobs, but...

Fauchier to take London Borough of Brent into fund-of-hedge-funds arena.
January 24, 2005... The GBP340m London Borough of Brent pension scheme has appointed fund manager Fauchier Partners to manage a GBP18m fund-of-hedge-funds mandate. This is the first time the pension fund has invested in hedge funds. Martin Spriggs, head...

APW union members lobby for PPF protection for scheme members.
January 24, 2005... Disgruntled union members from APW are lobbying parliament today (Monday) to get ministers' support for the scheme to be included in the Pension Protection Fund (PPF) as members face huge losses to their retirement benefits. The Transport...

News: Select Committee report on LGPS changes spurs call for debate in House of Lords.
January 24, 2005... Changes to the Local Government Pension Scheme (LGPS) are expected to be debated in the House of Lords. The call for a debate on the proposed changes, which will affect 1.5 million workers in the UK, follows a report from the House of Lords...

News: F&C sees increased demand for its shareholder engagement services.
January 24, 2005... F&C Asset Management has experienced increasing demand for its responsible engagement overlay (reo) and shareholder voting products across Europe. The asset manager said demand for shareholder engagement services arose from a combination...

News: EDS and Towers Perrin team up to provide HR outsourcing services.
January 24, 2005... EDS and Towers Perrin are to create a company to provide human resources (HR) outsourcing services for enterprises, HR departments, employees and retirees. The company is to launch with GBP320m in global revenues, serving more than 400...

News: Ashmore's emerging markets fund exceeds expectations in 2004.
January 24, 2005... Ashmore Investment Management's flagship fund, the emerging markets liquid investment portfolio (Emlip), has returned 29.17% for 2004. Mark Coombes, managing director for Ashmore Investment Management, said: "This has been another good...

News: Horlick urges funds to invest in alternative asset classes.
January 24, 2005... UK pension funds should have at least a third of their investments in alternative assets of hedge funds, private equity and property, according to Nicola Horlick. Horlick, founder of new manager-of-managers (MoM) firm Bramdean Asset...

News: Lothian tenders for global and European equities.
January 24, 2005... The GBP2bn Lothian pension fund has gone out to tender for global and European ex UK equities. The GBP180m global equities mandate is currently managed by Bank of Ireland Asset Management whose contract will expire in September 2007. ...

News: Morley wins Go Ahead tactical asset allocation mandate.
January 24, 2005... Go Ahead, a public transport company that provides bus, rail, parking and aviation services across the UK, has selected Morley Fund Management to manage a tactical asset allocation mandate. Morley will be required to add 1% year to the...

News: Tote selects JLT to run scheme.
January 24, 2005... Jardine Lloyd Thompson Administration Solutions (JLT AS) has replaced Gissings as administrator to the Horserace Totalisator Board (tote) pension scheme. The tote has appointed JLT AS to run its final salary pension scheme which has 1,500...

News: Mellon to service four Textron plans.
January 24, 2005... The Textron pension scheme has appointed Mellon Human Resources & Investor Solutions (Mellon HR&IS) to provide administration and actuarial services. Prior to Textron's review, Mellon HR&IS administered Textron's pensions in conjunction...

Events: Risk review breakfast briefings.
January 24, 2005... Lane Clark & Peacock (LCP) has organised a series of breakfast briefings to demonstrate how risk reviews can improve the management of pension schemes. The briefings, which will be held at LCP's offices in London, are aimed at trustees,...

Events: Pensions bill seminars.
January 24, 2005... Jardine Lloyd Thompson (JLT) is holding free breakfast seminars in Manchester and Leeds to address some of the critical issues arising from the pensions bill and simplification proposals. The sessions start on 1 February in Leeds and 9...

Events: Trustee conduct.
January 24, 2005... Punter Southall is running a number of client seminars next month, which will focus on trustee conduct in the light of the Pensions Act 2004. The seminars will be addressing questions such as how the new codes of practice will affect...

News: NAPF takes the mystery out of voting.
January 24, 2005... The National Association of Pension Funds (NAPF) has called for increased trustee voting in a bid to improve corporate governance. Following Paul Myners' second review, more attention has focused on voting as a tool for improving stocks...

News: Top brokers named by EAI.
January 24, 2005... A group of institutional investors forming the Enhanced Analytics Initiative (EAI) has compiled a list of top brokers following detailed evaluation. EAI named Deutsche Bank, Dresdner Kleinwort Wasserstein, Goldman Sachs, Morgan Stanley,...

News: Midas moves two funds to OEIC.
January 24, 2005... Midas Capital Partners has moved its two flagship funds from unit trust to open-ended investment company status. Midas Capital said the principal reason for the switch for the Midas balanced growth fund and balanced income fund is to allow...

Letters: call for action on proxy voting.
January 24, 2005... Your article on proxy voting for the Oxfordshire County Council pension fund (PW 17.01.05) may serve as 2005's first call for much needed reform. Although the headline inaccurately portrays Institutional Shareholder Services (ISS) as being...

News: Scheme managers welcome FSMA rules on promoting pensions.
January 24, 2005... The pensions industry has welcomed plans to allow scheme managers to promote occupational pension plans and offer financial guidance to employees. Following a two-year review, the Treasury decided to exempt pensions professionals from the...

News: AITC: dedicated UK financial education agency needed.
January 24, 2005... The Association of Investment Trust Companies (AITC) has called for the government to create a dedicated financial education agency in the UK. The AITC said that the agency could be created under the auspices of the Financial Services...

News: F&C names four hottest topics for 2005.
January 24, 2005... Funding of corporate pensions, corruption, political donations and HIV/AIDS are seen by F&C Asset Management as four hot engagement issues for 2005. F&C head of governance and socially responsible investment, Karina Litvack, said:...

News: Industrial property set to outperform retail in 2005.
January 24, 2005... Industrial property produced its best returns in 2004 since rebounding a decade ago, and is likely to outstrip retail as the best performing sector in 2005. Research produced by property consultants Colliers CRE estimated that the...

News: Watson Wyatt says merger will strengthen its market position.
January 24, 2005... Watson Wyatt & Company, principal subsidiary of Watson Wyatt & Company Holdings, and Watson Wyatt LLP have combined. Both currently exist under the alliance of Watson Wyatt Worldwide. Watson Wyatt & Company currently holds a 20% stake in...

Insider: Wicks lights the pensions fire.
January 24, 2005... A few days ago, I attended the Annual General Meeting of the Occupational Pensions Defence Union (OPDU), at which pensions minister, Malcolm Wicks, made a presentation. For a pensions minister to agree to give a presentation, answer questions...

News: Pensions deemed more viable than home equity to fund retirement.
January 24, 2005... A significant number of people will not be relying on their homes to support them in retirement, according to research. A survey by pensions provider B&CE found that almost half of the people in the UK (45%) did not anticipate using equity...

News: Japanese market set to lead the way to investment nirvana.
January 24, 2005... Japan will take over from China with bigger investment opportunities for 2005, according to fund manager Baring Asset Management (BAM). The asset manager said now is the time to invest in Japanese equities, as profit estimates become...

News: Charles Stanley adds low cost Sipp to its offering.
January 24, 2005... UK stockbroking and wealth management group, Charles Stanley, has launched a low cost self-invested personal pension (Sipp), designed for investors able to contribute at least GBP25,000 from pension savings. The group claimed that the alpha...

News: Workforce likely to bear financial burden of PPF.
January 24, 2005... Taxpayers will have to foot the bill for the Pensions Protection Fund (PPF), as more defined benefit (DB) plans face closure and contributions from top schemes are limited, experts warned. Tim Cox, chairman of the Association of Pension...

Ombudsman Watch.
January 24, 2005... MY DISCRETION This column is titled Ombudsman Watch for reasons that go back to the mists of time. A reasonable reader (and is there any other sort?) would be entitled to expect the column to do what it says on the tin, so to speak. ...

Governance Watch: WH Smith makes big executive payouts.
January 24, 2005... Struggling retailer, WH Smith, is holding its AGM this week, 27 January. Its annual report showed that Kate Swann, who was appointed chief executive in November 2003, received GBP500,000 in cash as compensation for the loss of benefits under...

Spotlight: An actuarial work in progress.
January 24, 2005... Derek Morris issued his interim assessment of the actuarial profession in mid-December 2004, and actuaries left for their Christmas break with some alarming newspaper headlines ringing in their ears. In fact, those actuaries who read the report...

Opinion: Leader - Easing the growing pains of DC investing.
January 24, 2005... A few years ago, defined contribution (DC) investing seemed a simple business. Scheme members were offered a relatively straightforward fund range, they made their choices and hoped that the markets and the fund managers delivered good returns....

Opinion: Personal View - Finding the middle ground.
January 24, 2005... Hybrid, risk sharing, middle ground; words we hear a lot nowadays, at least in the pensions industry. This reflects a consensus that extreme risk designs - final salary and defined contribution (DC) - are not widely sustainable for the...

Opinion: Inside View - Are you ready for some good pension advice?
January 24, 2005... The Treasury has announced a relaxation of the rules governing the definition of advice in the workplace for employers. The intention being that it aids the promotion and education of employees with access to a pension scheme, thereby...

Special Focus: Liquidity Funds - Intro.
January 24, 2005... Opportunities to tap into extra alpha from relatively low risk and highly liquid asset classes are few and far between, and it is these attributes that have helped money markets enjoy a resurgence among institutional investors. UK pension...

Special Focus: Liquidity Funds - Taking the sly approach to cash investment.
January 24, 2005... AAA-rated money market funds are based on what has been called the 'sly principle'. More respectable than it sounds, the principle stands for security, liquidity and yield. These are the three functions of top rated money market funds and,...

Special Focus: Liquidity Funds - New kid on the block set to make an impact.
January 24, 2005... The Institutional Money Market Funds Association (IMMFA) was established on 14 June 2000. It is the trade association for providers of AAA-rated, constant net added value, money market funds. These funds are currently domiciled in Dublin,...

Special Focus: Liquidity Funds - Institutional money market funds - security, liquidity and optimal returns.
January 24, 2005... Over the space of the last 10 years, investment in AAA-rated institutional money market funds in Europe has been nothing short of remarkable. According to the Institutional Money Market Funds Association (IMMFA) Money Fund Report, assets under...

Special Focus: Liquidity Funds - The key to better returns.
January 24, 2005... An increasing number of enhanced cash funds have come to the marketplace over the last few years. The objective has been to offer clients with more stable cash balances the opportunity to increase returns. The questions for investors include...

Special Focus: Liquidity Funds - The search for alpha - with cash.
January 24, 2005... Following a decline in the expectations for real returns from equities in the past few years, pension fund managers and trustees have been under increased pressure to make every part of the portfolio work harder. Investors have looked...

Special Focus: Liquidity Funds - Manager profile - Barclays Global Investors.
January 24, 2005... Company background Established more than 30 years ago, Barclays Global Investors Limited (BGI) is today one of the world's largest fund managers. BGI, a subsidiary of Barclays plc, has a significant international presence, with 10 offices...