Pensions Week articles from October 2004

Pensions Week archives from October 2004

News: JLT takeover of Profund may cause workforce redundancies.
October 4, 2004... Pensions software provider Profund Solutions is expected to make more than half of its workforce redundant later this year, following its takeover by Jardine Lloyd Thompson (JLT). Sources close to the company revealed that at least 50...

News: Fund management industry gets dire forecast as profitability deteriorates.
October 4, 2004... Diminishing business volumes and rising total costs have led to a significant deterioration in fund management profitability for the first time in 18 months. The latest quarterly financial services survey by the Confederation of British...

News: Morley loses head of consultant relations.
October 4, 2004... Morley Fund Management's head of consultant relations has resigned, leaving the firm searching for a replacement while the crucial post remains empty. Shona Whitesmith departed Morley at the end of September but the firm has not secured a...

News: Opas expands helpline service to include services for women.
October 4, 2004... The Pensions Advisory Service - Opas - is expanding its service by dedicating a helpline solely to women, who are currently most at risk of poverty in old age. Opas is in the process of recruiting volunteers for the helpline, which is...

News: ACA calls for affordable DB arrangement.
October 4, 2004... The chairman of the Association of Consulting Actuaries (ACA) has called for the introduction of an affordable lower-cost defined benefit (DB) pension arrangement as a solution to the mounting savings crisis. Adrian Waddingham said the...

News: Life insurance industry gets stable rating from S&P.
October 4, 2004... Standard and Poor's (S&P) rating service has boosted confidence in the UK life insurance industry by raising its rating outlook from negative to stable, despite a tough operating market. S&P said action by the government to stimulate...

News: Martin Currie to manage oe27m Aon equity mandate.
October 4, 2004... Martin Currie Investment Management has been selected to manage a GBP27m European (ex UK) equity mandate from Aon as part of its multi-manager programme. Martin Currie has been set a target of +1.5% of the benchmark. The composition of...

News: Mercer to face performance review at Merseyside fund.
October 4, 2004... Mercer Investment Consulting is to face a performance review at a multi- billion UK local authority pension fund to ensure it provides the best service to the scheme. The GBP2.9bn Merseyside pension fund receives advice on strategic...

News: First Actuarial to complete 11 scheme wind-ups for ITS.
October 4, 2004... Independent Trustee Services (ITS) has appointed First Actuarial to complete the wind-up of 11 pension schemes. The schemes were all previously administered by Norwich Union that recently discontinued its wind-up services. ITS was...

News: Investment managers unite against food industry's negative impact.
October 4, 2004... Socially responsible investment managers have united to put pressure on food companies to reduce their negative impact on the developing world. Insight Investment, Jupiter Asset Management and Morley Fund Management have joined forces to...

News: Wolseley pension fund sees oe60m rise in assets.
October 4, 2004... An upturn in equity fortunes has added GBP60m to the pension fund assets of one of the world's largest plumbing suppliers. The Wolseley pension fund has seen its assets grow from GBP340m to GBP400m in the past year after the world's equity...

News: Law firm Pinsent Mason is launched.
October 4, 2004... Law firm Pinsents has merged with Masons, creating a top 15 UK law firm. The merger will be effective from 6 December and will be known as Pinsent Mason. The merger will create a GBP150m turnover business, almost half of which will...

News: Turner & Newall takes case to High Court.
October 4, 2004... The administrators of embattled Turner & Newall (T&N) have taken the fight against the group's owner, Federal-Mogul, to the High Court in a bid to reverse restructuring plans that could leave members of its pension scheme facing massive losses....

News: Io Alternative loses chief investment officer.
October 4, 2004... Io Alternative Investment Strategies has lost its chief investment officer following the firm's decision to create a new alternative investments business with sister company Psolve Asset Solutions. Chris Jones has said he will quit his post...

News: MPs vote for compulsion but experts see it as a disincentive.
October 4, 2004... Unions and pension advisers are at loggerheads over compulsion following a majority vote by MPs in favour of it at the Labour party conference last week. Delegates voted to support the motion by the GMB union to make employer contributions...

News: Few women can escape pensions poverty trap.
October 4, 2004... While the issue of compulsion remains a burning issue for politicians, unions and employers, women are being passed over in the debate and are a group which has the most to lose, according to a senior research fellow from the University of...

News: Retirement age will remain at 65.
October 4, 2004... The retirement age will not be raised above 65, Alan Johnson, secretary of state for work and pensions, told delegates at the Labour party conference last week. Johnson's comments come after much debate over whether the normal retirement...

News: Research challenges Johnson's pledge to force auto-enrolment.
October 4, 2004... Damming research from the Pensions Institute questioned Alan Johnson's pledge last week to force employers who make a company contribution, to enroll their employees in pension schemes. The study by the Pensions Institute and Cass Business...

News: KPMG appeals ruling on pension scheme.
October 4, 2004... KPMG is appealing a High Court ruling over the definition of its pension scheme, which could see it doll out GBP71m to plug its pension deficit. The High Court ruling earlier this year determined that KPMG's GBP348m pre-2000 pension fund...

News: Lease legislation will hit pension fund savers.
October 4, 2004... The National Association of Pension Funds (NAPF) has slammed the government over its proposed lease legislation, which could hit pension fund savers. The proposed legislation, laid out in a consultation paper issued by the Office of the...

News: Trustee - Calling all trustees.
October 4, 2004... The need for trustees to be properly equipped and trained for the job has been obvious for many years, prompted for many by the codification of trustee responsibilities in the Pensions Act 1995. Further impetus was given by the Myners...

News: ABI claims savings will be encouraged with pension benefits overhaul.
October 4, 2004... The public will be encouraged to invest more of their own money in pensions if the government reforms Britain's outmoded state pension and benefits system, according to the Association of British Insurers (ABI). The latest figures from the...

News: Pensions bill fails ombudsman over jurisdiction issues.
October 4, 2004... The pensions ombudsman has hit back at the government for failing to take the opportunity to make wider ranging changes to his office when drafting the pensions bill. David Laverick, the pensions ombudsman, said: "The major change I felt...

News: Ombudsman watch.
October 4, 2004... Deaf, dumb and blind Just how insensitive can lawyers be? Printable responses, please, to the editor. Mr Peter Wolfson, partner at Sonnenschein, Nath and Rosenthal, advisers to the bondholders' and trade creditors' committee at...

News: ACA president warns of mass impoverishment among retirees.
October 4, 2004... Large numbers of the UK workforce are heading for an impoverished retirement unless savings are substantially increased, Mike Pomery, president of the Association of Consulting Actuaries (ACP), warned. In his first presidential speech since...

News: SMEs risk losing out on benefits of pension reform.
October 4, 2004... Small and medium-sized enterprises (SMEs) may miss out on the advantages of the pensions reform if they don't act soon, a consultant has warned. SMEs could be the winners when the government's overhaul of the pensions regime takes effect...

News: Aberdeen sees 7.8% increase in new business.
October 4, 2004... Aberdeen Asset Management issued an upbeat trading update last week netting GBP3.4bn in gross new business, over the last 11 months to 31 August. The group's net business went up 7.8% on last year at GBP2bn, with the fund management...

News: Global economy gets good forecast.
October 4, 2004... The bond market is putting too high a probability on a pronounced slowdown in global growth, according to Investec Asset Management. While investors are assuming the worst about the economic outlook, there is enough momentum in the upturn...

News: BGI to add four exchange traded funds to its offering.
October 4, 2004... Barclays Global Investors (BGI) plans to introduce four new products in the UK, subject to regulatory approval. The four exchange traded funds (ETFs) -iShares FTSE/Xinhua China 25 (FXC), will be the first to be available in Europe for...

Governance Watch: ISIS, F&C merger triggers shadow equity plan changes.
October 4, 2004... The EGM to approve the merger of ISIS Asset Management and F&C is taking place today (4 October). The board of the newly renamed F&C Asset Management will comprise 11 non-executive directors and three executive directors. Robert Jenkins,...

Opinion: Leader - Forcing the compulsory pensions contribution point.
October 4, 2004... It's that time of year again when the Labour party descends on a UK seaside resort to squabble over the latest political issues before indulging in fish and chip suppers and walks on the beach. This year the venue was Brighton and, like...

Opinion: Personal View - Putting aside the biases of active management.
October 4, 2004... Active management, though challenging and complex, is vital to investors' portfolios. Gaining the few extra percentage points that active management can yield may not have seemed like much in the late 1990s, but today it is critical. Over the...

Opinion: Inside View - Property provides new home for institutional assets.
October 4, 2004... Given the number of articles now being written about property performance, I doubt anybody is unaware of the fact that the asset class has outperformed equities and gilts over a three, five and 10 year time horizon. Perhaps what is less well...

People on the move: Gillham appointed as portfolio specialist at Legg Mason.
October 4, 2004... Legg Mason Investments has appointed Richard Gillham as portfolio specialist. Gillham has joined Legg Mason Investments from Merrill Lynch Investment Managers, where he was a senior US equity product specialist. Gillham joined Merrill...

People on the move: Orchard joins JPMorgan global portfolios team.
October 4, 2004... JPMorgan Fleming Asset Management has appointed Andrew Orchard as a portfolio manager in the global portfolios group, based in London. Orchard joins JPMorgan Fleming from Morgan Stanley where he was executive director, global sales,...

People on the move: BIAM reshuffles asset management team.
October 4, 2004... Bank of Ireland Asset Management (BIAM) has reshuffled its asset management team, following the resignation of four of its members. Leona Nicholson, director of BIAM has been appointed chief investment officer. Nicholson will have specific...

People on the move: Naylor associate director of DC product development at Fidelity.
October 4, 2004... Fidelity Investments has appointed Caren Naylor as associate director of defined contributions (DC) product development. Naylor joined Fidelity from Deutsche Asset Management, where she was DC specialist and responsible for the launch of...

News Just In... : BA staff get Towry Law as a financial friend.
October 4, 2004... British Airways has taken the initiative on offering financial advice to employees by hiring an external specialist to provide financial solutions and retirement planning. The airline company has appointed Towry Law to provide independent...

News Just In... : State Street wins oe750m in local authority custody mandates.
October 4, 2004... State Street has picked up custody mandates worth GBP750m with two London local authority pension funds. The GBP250m London Borough of Havering pension fund has dropped The Bank of New York, which has been the fund's custodian since1988, in...

News: Strathclyde splits actuarial and investment briefs.
October 11, 2004... One of UK's biggest pension funds is reviewing its consultant and considering hedge fund investment to fall in line with Myners' recommendations. The GBP6.1bn Strathclyde pension fund is tendering for an investment consultant, leaving the...

News: Funds invited to help write pensions bill.
October 11, 2004... Pension funds are being invited to help formulate the trustee knowledge and understanding section of the pensions bill in an online questionnaire set by the regulator. The Occupational Pensions Regulatory Authority (Opra) has assembled a...

News: Mellon calls for new independent authority.
October 11, 2004... Mellon Financial Corporation's Human Resources & Investor Solutions (HR&IS) has called for the establishment of a new independent and apolitical pensions authority in view of the current pensions bill's failures. In its submission to the...

News: LGPS fate still undecided as Govt, Unison battle over details.
October 11, 2004... Unison, the public sector union and the government are still locking horns over the fate of the Local Government Pension Scheme (LGPS) despite proposals to reinvent the scheme last week. Launched by minister Phil Hope of the Office of the...

News: Baillie Gifford launches Sipp.
October 11, 2004... Baillie Gifford has launched a self-invested personal pension (Sipp) provided by Alliance Trust Savings (ATS). The Baillie Gifford Select Pension will take advantage of the firm's investment management experience as the product provides...

News: Gartmore reopens hedge funds to raise oe300m.
October 11, 2004... Gartmore Investment Management is to reopen six of its closed hedge funds in an attempt to raise GBP300m for a collective hedge fund offering. Gartmore has created a basket of 10 of its AlphaGen funds, known as Perseus, containing hedge...

News: Sesame fined oe290,000 in unlocking case.
October 11, 2004... The Financial Services Authority (FSA) has fined Sesame GBP290,000 for allowing consumers to release cash from their retirement savings early - known as pensions unlocking. The advice given potentially affected 3,205 consumers between...

News: PPF may face problems in first two years of its inception.
October 11, 2004... The Pension Protection Fund (PPF) will face many problems in the first two years after it comes into force, Lawrence Churchill, PPF chairman, warned last week. Speaking at the Pensions Management Institute (PMI) conference last week, he...

News: HAC issues free guide to pensions bill.
October 11, 2004... HSBC Actuaries and Consultants (HAC) has issued a free guide to the pensions bill and tax simplification to help trustees, employers and employees untangle the complicated aspects of the legislation. The guide is designed to help those who...

News: IFAs call pension credit a disincentive to saving.
October 11, 2004... Independent financial advisers (IFAs) have slammed the government's pension credit saying that it is a disincentive to pensions saving. Responding to an online survey, more than 1,000 IFAs voted against the controversial pensions credit....

News: Mirabaud to launch high alpha product to compliment its core equity offering.
October 11, 2004... Mirabaud Investment Management, the UK specialist equity house, is set to launch a high alpha product to complement its core equity offering. The firm reached GBP1bn assets under management last month from its core UK offering and decided...

News: Dorset County invests oe22.5m in fund of hedge funds.
October 11, 2004... The Dorset County Council pension fund has invested GBP22.5m in to fund of hedge funds. The scheme has invested in the Momentum AllWeather sterling fund run by Pioneer Alternative Investments. In addition, the council has appointed...

News: Conservatives accuse government of robbing oe35bn from pension funds.
October 11, 2004... Robbing GBP35bn from pension funds was one of a barrage of accusations the Conservatives levelled at the government during their annual conference in Bournemouth last week. Conservative politicians John Redwood, Oliver Letwin and shadow...

News: Tories promise oe15bn in compensation.
October 11, 2004... The Tories have rubbed salt on the government's pension crisis wounds by offering to splash out up to GBP15bn to compensate workers who lost their retirement savings when their companies went bust. Speaking at the Conservative conference...

News: ABI to distribute contracting-out fact sheet to millions.
October 11, 2004... Six million pension policy holders are to receive a fact sheet to help them tackle the complex issue of contracting-out of the state second pension (S2P). The fact sheet, produced by the Association of British Insurers (ABI) and the...

News: Pomery president of IoA.
October 11, 2004... PW would like to point out that Mike Pomery is the president of the Institute of Actuaries and not the Association of Consulting Actuaries, as reported in PW on 4.10.04. The Institute of Actuaries president was reported warning of mass...

News: New members elected at Pensions Trust.
October 11, 2004... The Pensions Trust has elected two new members and the re-elected one member, to the Scottish Council for Voluntary Organisations (SCVO) pension scheme's advisory committee. The successful, candidates were Bola Adeshina of Clapham Park...

News: Events.
October 11, 2004... - JLT launches free breakfast seminars Jardine Lloyd Thompson (JLT) is launching a series of free breakfast seminars to address some of the critical issues arising from the pensions bill and simplification proposals. The series will...

News: Trustees no longer able to discriminate against disabled.
October 11, 2004... Pensions managers and trustees will have to reconsider their policies and scheme rules to reflect the introduction of disability regulations that came into force this month. Pension lawyers warned that trustees will no longer be able to...

News: Whistleblowing service launched by former Arthur Andersen employees.
October 11, 2004... Two former employees of the failed accountancy firm Arthur Andersen have launched a whistleblowing service. The service - known as TheHotline - was launched by the employees after experiencing the effects of corporate fraud and malpractice...

News: Higher rate taxpayers waste millions by not making additional voluntary contributions.
October 11, 2004... Higher rate taxpayers in company pension schemes are throwing away GBP683m by not boosting their contributions. The hefty amount is wasted because 69% of the 1.5 million higher rate taxpayers in company pension schemes have not made any...

News: ASW workers turn to police over loss of benefits.
October 11, 2004... Long-suffering former workers of Allied Steel and Wire (ASW) are turning to the police in a desperate ploy to get compensation from the government after their company collapsed. In a last ditch effort to claw back some of their dramatically...

News: Adair Turner to deliver findings on pensions.
October 11, 2004... The Pensions Commission's first report, out this week, is expected to pave the way for fresh government thinking, as chairman Adair Turner delivers his findings on the UK pensions system. Turner will publish his government sponsored...

News: Fitzpatrick ends 18-year stint with Hewitt Associates.
October 11, 2004... Hewitt Associates' head of global investment consulting, Nick Fitzpatrick, is ending his 18-year stint with the firm as he retires early next year. Nicola Ralston, who was head of investment management at Schroder Investment Management,...

News: Benchmark - Fallacy of composition.
October 11, 2004... The most important investment decision for a pension fund is its strategic asset allocation. I have been airing some thoughts on this topic in previous editions and this article addresses another aspect. Everything I have read about...

News: Employers deemed best source for pension provision information.
October 11, 2004... Almost half of UK employees believe their employers are best placed to provide them with information on pension provision, according to research from Aon Consulting. The study found that the next most trusted source of information on...

News: Ombudsman directs SLFC to pay oe5,000 for loss of records slip-up.
October 11, 2004... A scheme manager has been directed to pay GBP5,000 to a member after losing his and his brother's pension records. The scheme member - Mr J Keenan - took his complaint to the ombudsman after the Fosters Commercial Group pension scheme and...

News: Ombudsman watch.
October 11, 2004... Snippets This week I report on a couple of snippets and then turn to give a fuller report on a decision that highlights a different sort of conflict from the norm (and has an irresistible scheme name). There has been a lot in PW recently...

News: SPC warns against ban on upward only rent review.
October 11, 2004... Prohibiting upward only rent reviews would considerably reduce the options open to occupational pension fund managers, the Society of Pension Consultants (SPC) warned last week. The SPC said the government is in danger of "shooting itself...

News: Standard Life launches Sipp.
October 11, 2004... Standard Life has launched a self-invested personal pension (Sipp) to meet the changing demands of one of the fastest growing areas of the market. The Sipp has been designed for customers who are seeking greater control of their pension...

Spotlight: Introducing the trustee familiarisation requirement.
October 11, 2004... Trustees will be required to demonstrate a clear understanding of their pension schemes when the pensions bill is passed, particularly with the introduction of a trustee familiarisation requirement. The pensions bill specifies that these...

Governance watch: Lack of independent directors deviates from combined code.
October 11, 2004... One of the core tenets of current corporate governance thinking is the importance of a strong independent element on the board. Unfortunately some companies still do not meet the standards required by the combined code for this. The board...

Opinion: Leader - Between a pensions rock and a hard place.
October 11, 2004... The government is taking the initiative on occupational pension provision by overhauling the Local Government Pension System (LGPS) in a bid to keep the final salary scheme without forcing costs onto the taxpayer. The Office of the Deputy...

Opinion: Personal view - Tallying up the cost of the pension credit.
October 11, 2004... The role of means-testing in the state pension provision is likely to return to the front line of political debate over the next few weeks. The Work and Pensions Select Committee of the House of Commons is collecting evidence on the pension...

Opinion: Inside view - Merger and aquisition evolves despite fund deficits.
October 11, 2004... Recent high-profile cases have shown how pension fund deficits can affect merger and acquisition (M&A) activity. The current legislative vacuum around how to deal with such deficits creates added uncertainty for both vendor and purchaser. ...

People on the move: Beattie to lead Watson Wyatt's investment consulting practice.
October 11, 2004... Consultant Watson Wyatt has appointed Iain Beattie as partner to lead its investment consulting practice in Edinburgh. Beattie, a qualified actuary, has over 20 years' experience as an investment management professional, having held senior...

People on the move: Insight appoints Atherton, Bishop for its equity team.
October 11, 2004... Insight Investment has appointed Jeff Atherton as director of international equities. Atherton joined Insight this month and will manage a range of equity portfolios, including the Insight Japan equity fund. He joins from SG Asset...

People on the move: Simpson supports IFA needs as business development manager at Winterthur.
October 11, 2004... Winterthur Life UK has appointed Brian Simpson as business development manager to support the needs of independent financial advisors (IFAs). Simpson previously worked as a business development manager for Abbey, where he presented company...

People on the move: Moore joins SEI Investments' institutional team.
October 11, 2004... SEI Investments, the multi-manager, has appointed Anthony Moore as client service account director within the institutional team. Moore's position is newly created in response to the growth of SEI's institutional client base. He will work...

News Just In... : F&C creates equity superdesk in shakeup.
October 11, 2004... At least 17 fund managers have lost their jobs at the newly merged F&C Asset Management after the firm finalised staff on its equity desks. Fourteen employees on the UK and European equity desks were made redundant as the firm attempted to...

News Just In... : Croydon review will target private equity.
October 11, 2004... The GBP350m London Borough of Croydon pension fund has put its entire scheme under review despite an increase in fund assets of 29% last year. The scheme said that following its actuarial study in March this year, it wanted to review its...

News: Shift from DB to DC could cause annuities price spike.
October 18, 2004... The price of annuities could rocket as the major shift from defined benefit (DB) to defined contribution (DC) schemes increases the burden of longevity risk on annuity providers, warned Adair Turner. In an exclusive interview with PW,...

News: Scheme wind-up victims' cases to be investigated.
October 18, 2004... Thousands of workers who lost their pensions as a result of scheme wind-ups look set to have their cases investigated by the parliamentary ombudsman despite ongoing court action by trade unions, it was stated last week. Pensions consultant...

News: Owen appointed head of strategy at DWP.
October 18, 2004... The Department for Work and Pensions (DWP) has appointed Phil Wynn Owen as head of strategy and pensions client group director. The post, with a partly revised set of responsibilities, replaces that previously held by Paul Gray, who has...

News: Overhaul of firefighters scheme could cause retirement age rise.
October 18, 2004... The pension age for firefighters could be hiked by five years to 55 as part of a government consultation to overhaul the Firefighter's Pension Scheme (FPS) aimed at tackling high costs and inflexibility in the current provision. Proposed...