Pensions Week articles from March 2008

Pensions Week archives from March 2008

News: TPAS demands overhaul of industry jargon.
March 3, 2008... Byline: Tom Willetts A massive effort is needed by the pensions industry to reduce jargon, according to Malcolm McLean, chief executive of The Pensions Advisory Service (TPAS). The call is based on hundreds of complaints received by...

News: Trust-based DC schemes face uncertain future.
March 3, 2008... Byline: David Rowley Trust-based defined contribution (DC) schemes will cease to exist in 20 years' time at the current rate of closure, according to the Pensions Regulator. Figures passed to PW show that over the last five years, the...

This week: Clarity, simplicity and accessibility.
March 3, 2008... Byline: David Rowley - Editor, Pensions Week 'What changes are you going to make to Pensions Week now you have been made editor?' This is an awkward question, as I feel a duty to thrill those who ask it by saying we have a bold new vision...

News: Help for trustees in conflict welcomed.
March 3, 2008... Byline: David Ricketts The Pensions Regulator's guidance on how boards of trustees should deal with their own internal conflicts of interest, has been welcomed by independent trustees. The draft guidance outlines ways conflicts can be...

News: Trustees under pressure as role doubles in size.
March 3, 2008... Byline: Tom Willetts More than two-thirds of trustees managing schemes worth more than GBP500m find it difficult to make time for the growing demands of the role, according to a survey. The research from Aon Consulting found a third of...

News: Rothesay buys out Rank in record GBP700m deal.
March 3, 2008... Byline: David Ricketts Rothesay Life, the buyout arm of Goldman Sachs, has completed its first transaction, acquiring the GBP700m Rank Group pension scheme. The deal, which is believed to be the biggest buyout transaction in the UK so...

News: Good governance gains higher returns.
March 3, 2008... Byline: David Ricketts Companies with good corporate governance records are producing returns 18% higher than those with poor governance, research from the Association of British Insurers (ABI) has shown. Over 600 UK FTSE All Share...

News in brief.
March 3, 2008... Trustees of the University of Leeds Pension and Assurance Scheme are reviewing the fund's investment arrangements and are inviting tenders for an GBP80m actively managed UK and overseas equity mandate. The GBP500m London Borough of Barnet...

News: Consultants dispute value of alpha fees.
March 3, 2008... Byline: David Ricketts Alpha-hungry pension funds are paying 50% more in fees than they were five years ago, according to new research from Watson Wyatt. The global consulting firm found that fees now average 110 basis points compared...

News: Cardano adds GKN scheme to growing portfolio.
March 3, 2008... Byline: David Ricketts The GKN Group pension scheme has selected Cardano to manage a GBP300m portfolio of active equity investments on a discretionary basis. The scheme hopes the move will generate superior returns from equities. ...

News: Libor plus is an investor's best friend.
March 3, 2008... Byline: David Rowley Top investment allocations for the next five years are Libor plus/absolute return, liability-driven investment (LDI), hedge funds, private equity and high alpha equities according to investment professionals. The...

News: Merseyside members must vote to disinvest.
March 3, 2008... Byline: David Rowley & Owen Walker Merseyside Pension Fund members need to present an absolute mandate to disinvest from the arms trade according to the Church of England's fund manager. The comments made by CCLA Investment Management...

News: DC hedge fund innovation.
March 3, 2008... Byline: David Rowley One of the first of a new range of default defined contribution funds that contain exposure to synthetic hedge funds is being launched by State Street Global Advisors (SSGA). Its range of diversified growth funds...

News: Investment comment - Principal Global Investors.
March 3, 2008... Byline: Stephen Holt This week's investment comment addresses the evolution of emerging market equity investing, an area regarded historically as significantly more risky than developed markets. Spectacular returns, a lack of macroeconomic...

News: Buyout prices drop as market hots up.
March 3, 2008... Byline: Tom Willetts Fierce competition in the pensions buyout market is slashing prices and swelling the number of products offered to schemes. More than 15 firms are now competing to tackle pension schemes' investment or mortality...

News: Employers would transfer liabilities if price was right.
March 3, 2008... Byline: David Rowley Nearly two-thirds of employers would like to transfer some of their liabilities through bulk annuity buyouts, according to Towers Perrin. Its survey of 200 board-level executives in the UK, conducted together with...

News: Buyout growth sees business boom for ITM.
March 3, 2008... Byline: David Rowley Pensions data specialist ITM has seen a boom in work, as concern over data accuracy and the migration of schemes to buyout firms has grown. The company is recruiting staff from elsewhere in the industry to meet...

News: RIRC rallies to overturn UK age 75 annuity laws.
March 3, 2008... Byline: Owen Walker UK legislation that requires pensioners to annuitise at age 75 could face a legal challenge over its compatibility with EU law. Legal firm, Clarke Willmott, and the Retirement Income Reform Campaign (RIRC) - led by...

News: Workers warned variable annuties need further tests.
March 3, 2008... Byline: David Rowley Employees should exercise caution over purchasing variable annuities, as their value for money is not yet proven, claims Watson Wyatt. Variable annuities enable customers to invest money in a range of funds and...

News: Anglo-Scot actuarial bodies plan merger.
March 3, 2008... Byline: Tom Willetts The Faculty of Actuaries and the Institute of Actuaries are planning to merge to streamline governance and create a clearer identity for the profession. The move will sweep away the parallel governance systems of...

Current affairs: Gaining heat.
March 3, 2008... Byline: David Ricketts Once only talked about among environmental circles, climate change has evolved not only as one of the most important issues facing the planet in the 21st century, but as a potential investment opportunity. When...

Current affairs: Modernising the Myners principles.
March 3, 2008... Byline: Lindsay Tomlinson It's hard to believe that Paul Myners' review of institutional investment in the UK was completed nearly seven years ago, but a lot of water has flowed under the bridge since then. The National Association of ...

The insider: Personal view - How to make employees receptive to pensions is the $64bn question.
March 3, 2008... Byline: Emma Douglas The challenges inherent in defined contribution (DC) pension provision are tough ones. How do you get employees to accept that they need to take responsibility for ensuring they have an adequate income in retirement?...

The Insider: Technical view - Putting some weight behind 130/30.
March 3, 2008... Byline: Alistair Sayer A less commented on advantage of the 130/30 structure is its ability to introduce investment techniques typically used by hedge funds and other sophisticated investors into a traditional stock picking portfolio. ...

Industry watch: Governance - Disinvestment is not the dirtiest word.
March 3, 2008... Byline: Tom Powdrill For as long as investors have been trying to address social and environmental issues as part of their investment strategy, the difficult issue of disinvestment has been debated back and forth. As Pensions Week has...

Industry watch: Notice board - NAPF trustee training and seminars.
March 3, 2008... Trustee training for 2008 NAPF has a range of courses that support the training needs of trustees. Courses are designed to suit everyone from newly appointed trustees to those looking for more in-depth knowledge and understanding. NAPF...

Industry watch: View from the bridge.
March 3, 2008... Byline: Norman Russell Come on you Spurs I was not sure if the editor would let me get away with this headline. But it's not very often that Wembley Stadium rocks to the sound of "glory glory Tottenham Hotspur", as it did last Sunday,...

Trusty30: Governance survey.
March 3, 2008... Byline: David Rowley A recent survey by F&C Investments showed that UK corporate governance was at its highest level, with votes against companies at a record low. Ironically this has come at a time when UK pension funds are cutting back...

Special Focus: Introduction.
March 3, 2008... Byline: David Rowley - Editor, Pensions Week Choosing a fund manager is an act of faith and guesswork. Trustees have to rely on their own intuition, which in hindsight might appear to have been not so wise. Choosing a fund-of-funds...

Special Focus: The expanding function of funds.
March 3, 2008... Byline: Sarah Coles The multi-manager bandwagon has been rolling for five years, and it is maintaining impressive momentum. The backbone of the industry has tended to be the manager-of-managers market, but under the radar, funds-of-funds...

Special Focus: Private equity unmasked.
March 3, 2008... Byline: Cecile Belaman, Martine Kerschenmeyer and Rebecca Zimmerman Between 2005 and 2007, global private equity fundraising increased materially, as individual and institutional investors, encouraged by strong recent performance, sought...

Special Focus: Company focus - A word from the sponsor...(Company overview)
March 3, 2008... Background Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services. The firm's employees serve clients worldwide including...

On the move: Waring rides waves at Merchant Navy.
March 3, 2008... Byline: Tom Willetts The GBP3.2bn Merchant Navy Officers Pension Fund (MNOPF) has appointed Andrew Waring as chief executive. Waring joins from the Benfield Group, where he was chief operating officer for Benfield Advisory, Benfield...

On the move: Going places.
March 3, 2008... Innovative trio brings skills to Hazell Carr Hazell Carr has appointed three new members of staff. Jonathan Seed joins the firm's Stirling office as regional head of actuarial services from Buck Consultants. He has also worked for...

On the move: Top 4 moves.
March 3, 2008... 01 - Peter Hill-King, Paul Kemmer, Sachin Patel OLD - Hill-King leaves Aon Consulting, Kemmer leaves Armajaro Securities and Patel leaves Gissings NEW - Hill-King and Kemmer become investment advisers and Patel becomes an investment...

News: Council funds must disclose private deals.
March 10, 2008... Byline: David Rowley Secret fees negotiated by local authority pension funds with their fund managers and consultants are to be made open to the public. The move could lead to a levelling of fees that will lose some funds the special...

News: PPF admits to levy imbalance.
March 10, 2008... Byline: Tom Willetts The Pension Protection Fund (PPF) has admitted its levy could be unfair to schemes that implement low risk investment strategies. Schemes whose investments are predominantly lower risk, or use hedging strategies,...

This week: There is room at the top.
March 10, 2008... Byline: David Rowley - Editor, Pensions Week The trouble with being number one is maintaining the position. This is perhaps how some of the so-called big consultants are viewing their current positions. Over the last few weeks I have had a...

News: Retailer to pay GBP9m to grow DB scheme.
March 10, 2008... Byline: Tom Willetts The John Lewis Partnership is planning to fund greater membership of its open defined benefits (DB) scheme from record profits. Bucking the trend of DB scheme cutbacks, the retailer is looking to reduce the time...

News: Hewitt questions perceived decline of trust-based DC.
March 10, 2008... Byline: David Rowley Trust-based defined contribution (DC) schemes are alive and growing despite reports of their demise, according to Hewitt Associates. Figures from the Pensions Regulator show that the number of trust-based DC...

News: Myners makes case for PA default consultation.
March 10, 2008... Byline: David Ricketts & David Rowley Paul Myners is calling for a consultation to take place on the default investment option for personal accounts. Speaking at the National Association of Pension Funds investment conference, Myners,...

News: NAPF hopes for change to small pensions rules.
March 10, 2008... Byline: David Rowley The National Association of Pension Funds is hoping that the government will give schemes more scope to discharge pension pots of less than GBP2,000 in this week's Budget. It has been in talks with HM Revenue &...

NAPF News.
March 10, 2008... The NAPF has launched a competition for its members to find innovative investment practice. Chief executive Joanne Segars said the competition would help the organisation find out how schemes' thinking is changing in the current...

News: Trustees have duty to tackle climate change.
March 10, 2008... Byline: David Ricketts Pension trustees risk failing their fiduciary duties if they do not tackle climate change in their investments, according to the London Pension Fund Authority (LPFA). Speaking at the National Association of...

News: US pensions expert attacks planned PA management fee.
March 10, 2008... Byline: David Rowley The proposed management fee for the government's planned personal accounts system has been slammed by a leading US pensions specialist. Todd Ruppert, chief executive of fund manager T Rowe Price, said at the...

News: Schemes urged to wage war on high fees.
March 10, 2008... Byline: Padraig Floyd Pension schemes must pursue a "mission on fees" to reduce unnecessary costs and ensure members receive value for money from investment management. Speaking at the National Association of Pension Funds annual...

News: Letter.
March 10, 2008... "The article 'Adviser commission set to continue for FP rivals' (PW 11.02.08), highlights the urgent need for more transparency about how financial advice is paid for. "Scottish Life has long believed that traditional IC models are...

News: Shell pensions expert heads to MSIM.
March 10, 2008... Byline: David Rowley Shell International's global pension funds have lost one of their key advisers to Morgan Stanley Investment Management. Joseph McDonnell had been responsible for asset allocation and manager selection for the Shell...

News: Barnett Waddingham adds Garvins to go top.
March 10, 2008... Byline: Karen Goodchild UK consulting firm Barnett Waddingham has acquired Garvins, a UK actuarial firm, for an undisclosed sum. It claims the merger now makes it the largest actuarial firm in the UK. The combined group will...

News: Schemes branded 'lazy' for lack of global teamwork.
March 10, 2008... Pension funds across the globe have failed their fiduciary duty for not identifying the subprime crisis early enough, according to experts. Graham Sinclair, project manager for the UN-led Principles for Responsible Investment, described...

News: Trustees urged not to scrimp on admin.
March 10, 2008... Byline: Owen Walker & David Ricketts Steve Delo, president of the Pensions Management Institute, has sounded out a warning to trustees who squeeze administration fees. Speaking at the Financial Times administration and outsourcing...

News: Volatility will create a 'golden era' for shareholder activism in 2008.
March 10, 2008... Byline: David Ricketts This year could be a golden era for shareholder activism, according to a leading investment professional. Harlan Zimmerman, partner at US shareholder activist fund manager Cevian Capital, said that recent market...

News: Pensions viewed as important by three in four staff.
March 10, 2008... Byline: David Ricketts Workplace pensions are one of the most valued benefits among employees, figures from a survey have suggested. The National Association of Pension Funds' (NAPF) workplace pensions survey found 75% of employees...

News: Best practice firm to empower trustees.
March 10, 2008... Byline: David Rowley An independent consultant that works to monitor schemes' advisers and service providers has vowed to help its clients improve investment returns. AllenbridgeEPIC Investment Advisers, a firm made up of experts with...

News: Alternative assets still a major pull for pension funds.
March 10, 2008... Byline: David Rowley Pension funds continued to diversify their assets over 2007 with alternative classes increasingly favoured, according to Watson Wyatt. UK pension funds advised by Watson Wyatt last year increased their allocation...

News: USS boosts retail portfolio with GBP80m freehold.
March 10, 2008... Byline: David Rowley The GBP30bn Universities Superannuation Scheme (USS) has bought the freehold interest in the Eden Walk Shopping Centre, a retail site based in Kingston- upon-Thames for GBP80m. USS bought the centre from clients of...

Current affairs: Q&A.
March 10, 2008... Byline: Tom Willetts Q: What is the purpose of the Pensions Advisory Service (TPAS)? A: We give free advice to the public about pensions. The bulk of our activities are now in providing information rather than resolving disputes. ...

Current affairs: Pensions policy hits rock bottom.
March 10, 2008... Byline: Frank Field The report from Policy Exchange is the latest stark warning to the government that despite a whole bevy of reforms, the position for tomorrow's pensioners is possibly worse than it was 10 years ago. What once...

The insider: Personal view - SMEs should go back to basics with their strategy to avoid deterioration.
March 10, 2008... Byline: Jarrod Parker Following recent market downturns, employers and trustees will no doubt be aware that the value of their scheme's assets have fallen, with a corresponding deterioration in their short-term funding position. It is...

The Insider: Technical view - Shielding against future uncertainty.
March 10, 2008... Byline: Paul McGlone The second half of 2007 saw substantial changes to investment markets, starting with panic over subprime in late summer, evolving into longer-term uncertainty and important changes to future expectations. Just when we...

Industry watch: Governance - Tories turn to embrace ethical investment.
March 10, 2008... Byline: Tom Powdrill Is socially responsible investment (SRI) starting to lose the pejorative 'political' label that has often been forced upon it? An interesting development in the past couple of weeks suggests it might be. For those of...

Industry watch: Notice board - NAPF guides and training.
March 10, 2008... Investing in commercial property made simple The latest title in the NAPF's 'made simple' series was launched last week at the association's annual investment conference in Edinburgh. Investing in commercial property made simple carries...

Industry watch: View from the bridge.
March 10, 2008... Byline: Norman Russell Shock and horror I was chatting in the coffee room with Paul Mander, one of the partners in my department, about the kind of thing that men of a certain age talk about over coffee. At that moment, the post...

Pensions workout: Beginner - Self-invested personal pensions (Sipps) - Beginners' level.
March 10, 2008... When personal pension plans were introduced in July 1988 they were wholly insured and planholders were restricted to choosing from the list of funds offered by an individual product provider. As part of the government's aims to widen the...

On the move: Agius to work with regulator on policy.
March 10, 2008... Byline: David Rowley Hewitt Associates' Russell Agius is to join the Pensions Regulator on a six- month part-time secondment. Agius, who works in Hewitt's retirement consulting practice, has 13 years' experience as an actuary. He will...

On the move: Going places.
March 10, 2008... Watson Wyatt hires six industry specialists Watson Wyatt has hired a range of new talent to expand its investment team. Mayur Lodhia joins from Old Mutual Asset Managers and has been appointed as an investment consultant in the client...

On the move: Top 4 moves.
March 10, 2008... 01 - Andrew Waring OLD - Waring was chief operating officer at the Benfield Group NEW - He becomes chief executive of the Merchant Navy Officers Pension Fund Tel: 01372 200385 02 - Jonathan Seed OLD - Seed leaves Buck...

News: Experts offer alternative Budget vision.
March 17, 2008... Byline: David Ricketts Key industry figures have responded to what was widely seen as an unspectacular Budget for pensions by suggesting what the chancellor should have done. Top of the list was more timely tax relief for companies...

News: NHS staff to seek advice.
March 17, 2008... Byline: David Rowley Up to 1.4 million NHS workers could be seeking independent financial advice on their pensions next year. All are being given a one-off chance to switch to a new scheme with a higher accrual rate, that has a...

This week: Going back to school again.
March 17, 2008... Byline: David Rowley - Editor, Pensions Week If you don't like steep learning curves, pensions is not a good sector to join. Just when you think you are the wise old head, along comes a fiendishly complex new strategy and you're bottom of...

News: Council funds voice disclosure concerns.
March 17, 2008... Byline: David Rowley Local authority pension funds fear they will not gain access to premium hedge funds and private equity as a result of a freedom of information ruling. The Information Commissioner has declared that it is in the...

News: Doctors win case to overturn cap on NHS pensions.
March 17, 2008... Byline: Tom Willetts GPs have won a landmark ruling against the government's decision to cap their NHS pensions retrospectively. High Court judge Mr Justice Mitting upheld a claim from the British Medical Association (BMA) that an...

News: Trivial pension changes are a relief for schemes.
March 17, 2008... Byline: David Rowley Pension schemes have been spared the complex test for working out whether small pension pots can be commuted in this month's budget. Pension pots of up to GBP2,000 can now be paid out as a lump sum to members at...

News: Gateway plans could clash with PAs.
March 17, 2008... Byline: David Rowley The government is at risk of undermining personal accounts with the launch of its savings gateway scheme in the Budget, according to Hargreaves Lansdown. The scheme is aimed at encouraging lower income households...

News in brief.
March 17, 2008... The removal of the GBP5 fixed stamp duty on declarations of trust has been welcomed by pensions lawyers, according to Allen & Overy senior professional support lawyer Giannis Waymouth. "The actual tax was only GBP5, but the amount of angst...

News: Six solvent schemes enter safety of FAS.
March 17, 2008... Byline: David Ricketts The first solvent pension schemes to enter the Financial Assistance Scheme (FAS) have been announced by the Department for Work and Pensions. The underfunded schemes all have compromise agreements, where to...

News: Property report sees London drop out of top 10-rated.
March 17, 2008... Byline: David Rowley London has fallen out of the top 10 European real estate prospects for the first time, with Istanbul and Moscow becoming the best investment opportunities. The Emerging Trends in Real Estate Europe 08 report by the...

News: PIRC to rate FTSE firms for risk potential.
March 17, 2008... Byline: Tom Willetts Governance advice firm PIRC is ranking all FTSE firms according to their corporate responsibility risk in a new service for investors. The GovernancePlus rating service analyses the extent of forward thinking;...

News: Shell settlement nets UK a share of GBP40m.
March 17, 2008... Byline: David Ricketts Royal Dutch Shell is to settle a class action case that will lead to UK investors claiming a potential share of a GBP40m settlement. The claim was filed against the oil giant after it announced that it had...

News: Outlook bright for buyout in 2008 firms.
March 17, 2008... Byline: Tom Willetts Buyout firms will write more than GBP15bn of business before the end of the year, according to Lucida. The buyout firm said the outlook for the market was rosy and fierce competition was fostering inventiveness....

News in brief.
March 17, 2008... Hymans Robertson has launched a free online tool to help trustees and scheme sponsors calculate the cost of avoiding the Pension Regulator's longevity trigger. The launch of Four Score & Ten follows the regulator's recent mortality...

News: IMA renews debate over annuitisation.
March 17, 2008... Byline: David Ricketts The Investment Management Association (IMA) has weighed in on the clamour for an alternative to annuities. The trade body, which represents the UK's asset management industry, has put forward eight different...

News: Levelling of PPF's DB levy applauded by financial firm.
March 17, 2008... Byline: David Ricketts Proposals for a rethink of the Pension Protection Fund (PPF) levy for defined benefit pension schemes, have been welcomed by a leading financial services firm. Towry Law has called the announcement for a more...

News: PADA study finds favour for PA charges.
March 17, 2008... The majority of people in the UK favour personal accounts and do not think a charging structure will be a barrier. Research from the Personal Accounts Delivery Authority (PADA) - Building personal accounts: Attitudes and reactions to...