Pensions Week articles from October 2005

Pensions Week archives from October 2005

News: Regulations setback leaves Sipps exposed.
October 3, 2005... Government proposals to reform self-invested personal pensions (Sipps) will not come into effect until April 2007 - leaving a year-long window for shoddy investment schemes to operate, experts warned. A whole raft of unregulated exotic...

News: Smaller schemes disadvantaged by lack of qualified trustees.
October 3, 2005... Trustees of small and medium-sized pension schemes are not getting enough training according to a report by The Pensions Regulator, despite calls to improve knowledge and understanding. The regulator found that that there has been only a...

News: Glaxo opts for ABN Amro fund custody.
October 3, 2005... One of the world's biggest drugs groups has selected ABN Amro Mellon Global Securities Services as global custodian of its pension fund. GlaxoSmithKline selected ABN Amro to act as the sole custodian of its GBP6bn corporate pension fund....

News: NAPF study highlights training requirements for trustees.
October 3, 2005... The quality of decisions made by pension scheme trustees is inconsistent and below standard, according a damning report by Oxford University and the National Association of Pension Funds (NAPF). The report said trustees need more training...

News: Closing DB schemes could break age discrimination laws.
October 3, 2005... Companies that close their defined benefit (DB) schemes to new employees could be breaching age discrimination laws and face a potential backlash from employees. A survey by Aon Consulting found that almost half of the respondents were...

News: Firm set up to handle demand for property Sipps.
October 3, 2005... Two former Britannic Assurance senior managers have set up a residential investment, property management and consultancy services firm, because of the expected surge in demand for property after A-day. Worcestershire-based Specialised...

News: Dorset tenders to reinvest assets.
October 3, 2005... The GBP1bn Dorset County Council pension fund has put out to tender for a string of fund managers following a review of its entire scheme portfolio. The scheme is looking to appoint an active UK equities manager for GBP70m of the fund, an...

News: Kas Bank provides support services in alliance with DIFX.
October 3, 2005... Kas Bank has teamed up with the Dubai International Financial Exchange (DIFX) to support and facilitate European companies and funds listed on the DIFX as a secondary market. The agreement includes settlement and custody services for major...

News: Rise in profits reflects positive savings trend.
October 3, 2005... Financial services firms have avoided the tough economic conditions blighting UK companies and are enjoying rising levels of business and rocketing profits, according to the Confederation of British Industry (CBI). Twenty-five per cent of...

News: Clerical Medical expands group funds.
October 3, 2005... Clerical Medical has added Fidelity and Invesco to its external range of funds for group pensions. The pensions and investment provider has added 18 funds including four fund- of-funds to its offering. The fund range includes a...

News: News in brief.
October 3, 2005... STANDARD LIFE OFFERS SELECT PROPERTY FUND Standard Life has set up a property fund for its bonds, mutual funds and pension funds. The fund provides new and existing Standard Life customers with access to the Standard Life Investments'...

News: Pioneer hopes for more opportunities in UK with LDI.
October 3, 2005... Pioneer Investments is introducing liability-driven investment (LDI) products and heading for a further recruitment drive as it attempts to move into the UK pensions market. Kerry Duffain, head of consultant relations, said the firm was...

News: Assetz offers property Sipp.
October 3, 2005... Property investment firm Assetz has set up a UK and overseas property- friendly self-invested personal pension (Sipp). The fund, which the firm claimed is the first of its type, is aimed at pension-holders looking to buy property in their...

News: Pension groups merge to increase lobbying clout.
October 3, 2005... A new body, the Association of Member-directed Pension Schemes (AMPS) has been created to represent the providers of self-invested pension arrangements used by individuals and small businesses. The formation of the AMPS brings together the...

News: Old Mutual pursues Skandia despite snub.
October 3, 2005... Old Mutual has vowed to go ahead with its offer to purchase Skandia despite opposition against the offer. The Skandia board said Old Mutual's public offering was unattractive to Skandia's shareholders. However, Old Mutual said its...

News: Don't miss future editions of the Trustee Masterclass.
October 3, 2005... Have you been keeping up to date with the Trustee Masterclass series produced as a joint initiative between PW and Merrill Lynch Investment Managers (MLIM)? The Trustee Masterclass aims to help UK pension fund trustees with the increasing...

News: T&N gets set to enter PPF with reduced deficit.
October 3, 2005... Long-suffering car-parts company Turner & Newall's (T&N) pension scheme is set to enter the Pension Protection Fund (PPF) with a vastly reduced deficit to the GBP900m previously anticipated. In a deal between T&N's administrators Kroll,...

News: Experts urge caution when using mortality figures.
October 3, 2005... A sharp rise in pensioner life expectancy could place more pressure on pension scheme funding and increase calls for later retirement dates, but experts are warning that it may be unwise to extrapolate too much from the latest mortality...

News: Somerfield/Kwik Save tops up scheme deficit with oe10m injection.
October 3, 2005... Supermarket giant Somerfield/Kwik Save has been forced to inject cash contribution into is pension scheme in an attempt to plug is GBP112.3m deficit. The company put in GBP10.3m into its defined benefit scheme for the financial year ending...

News: CEPB switches to Comino for admin.
October 3, 2005... The Church of England Pensions Board (CEPB) has dropped Profund as its pensions administration software provider. The scheme selected Comino and hopes the move will create greater efficiency and cut costs. Comino's universal pensions...

News: JLT to offer outsourced administration services.
October 3, 2005... Jardine Lloyd Thompson (JLT) is lining up clients for outsourcing deals following its takeover of Invesco's defined contribution (DC) administration arrangements. Duncan Howorth, managing director of benefit consulting at JLT, said the...

News: Marsh and Mercer merge benefits.
October 3, 2005... Marsh and Mercer have combined their employee benefits businesses to provide a wider range of services. The move involves the integration of Marsh's insured pensions, healthcare and risks businesses together with its employee...

News: Regulator warns trustees to be aware.
October 3, 2005... Trustees must ready themselves for the scheme funding requirements due to come in at the end of the month, The Pensions Regulator warned. Charlie Massie, the regulator's strategic development director, said trustees must question their...

News: Benchmark - Sting in the tale - Stuck in the middle.
October 3, 2005... Well, it's not every day that Tony Blair says anything about pensions. In fact, he so rarely says anything about the subject that when he does I tend to regard it as an event of national importance.What's more he's done it in his annual address...

Update: Ombudsman watch.
October 3, 2005... AVCs My researcher wanted to know why so many of the ombudsman's determinations start as follows. MrA or MrsB "complains that Prudential's sales representative improperly persuaded him (or her) to pay additional voluntary contributions (AVCs)...

Update: NAPF notice board.
October 3, 2005... NAPF regional conference 2005 The second National Association of Pension Funds (NAPF) regional conference takes place this Tuesday 4 October at Cardiff's Marriott Hotel. More than 100 delegates have already registered for an event which...

News: Industry fears impact of PPF levy on investment strategy.
October 3, 2005... Pension funds willing to adopt more sophisticated investment strategies could be stifled by the Pension Protection Fund's (PPF) proposed risk-based levy, according to advisers. Trustees desperate to plug yawning gaps in their pension funds...

News: Scrap state system, say IFAs.
October 3, 2005... The current state pension system is too complicated and should be overhauled, according to independent financial advisers (IFAs). Research from Axa found that nearly three-quarters (73%) of IFAs want a complete rethink of the existing...

News: Standard Life changes Sipp payment structure.
October 3, 2005... Standard Life has enhanced it self-invested personal pension (Sipp) to widen its appeal to a larger number of investors that make regular payments by allowing them to pay for the cost of advice in monthly instalments and by commission. ...

News: Events.
October 3, 2005... SIMPLIFICATION SEMINARS Scottish Widows is holding seminars on complying with the forthcoming rules and regulations of the Pensions Act 2004 and pensions simplification. The seminars will cover the actions trustees of defined...

News: Governance update - Acquisition complications impact on AGM.
October 3, 2005... East Surrey Holdings is to hold its annual general meeting (AGM) this week and its corporate governance arrangements are complicated by the company being target of an uncompleted acquisition, which may not go ahead. At an extraordinary general...

McAllister investigates: Public sector pension schemes - Reform or revolt?
October 3, 2005... It is an inescapable fact; public sector pension schemes are in desperate need of reform. Employers know it, the government knows it, actuaries, the industry, the wider public, we all cannot escape the blindingly obvious. Yet the unions will...

Opinion: Leader - Exposing the naked truth of the pensions deficit.
October 3, 2005... Within months of its inception the Pension Protection Fund (PPF) is facing significant challenges, most notably in the shape of Turner & Newall (T&N), the latest pensions casualty. While the pressure on the PPF and the contributing...

Opinion: Personal view - Profitable equities could be found a lot closer to home.
October 3, 2005... The search for attractive investment returns has led pension funds into some far-flung markets and exotic investment strategies in recent years. Brazil, Russia, India and China have all seen substantial inflows of capital, as have hedge funds...

Opinion: Inside view - JLT/Profund: one year after the merger.
October 3, 2005... One year on from JLT's acquisition of Profund, Pensions Week talks to Duncan Howorth, managing director, benefits solutions, and Steve Swift, chairman, Profund Solutions, to find out how the company has developed. Q: Why did Jardine Lloyd...

Special Focus: Asset/liability Modelling - Contents.
October 3, 2005... Trustees are now acutely aware of the dangers of a mismatch between their assets and liabilities. The cavernous funding gaps in UK pension funds caused by over-investment in equities have forced pensions professionals to think more...

Special Focus: Asset/liability Modelling - Predicting the future.
October 3, 2005... There are plenty of people in the UK that wish clairvoyance was a prerequisite for UK pension fund trustees and their advisers, most notably those scheme members left with nothing following the collapse of their sponsoring employer. ...

Special Focus: Asset/liability Modelling - Offering a different perspective.
October 3, 2005... As investment banks assume greater involvement in the area of finding solutions to pension fund financial exposures, their input in the asset/liability management arena is becoming more important. In particular, a number of investment banks...

Special Focus: Asset/liability Modelling - Company Profile - Barclays Capital.
October 3, 2005... Background Barclays Capital is the investment banking division of Barclays Bank plc the international financial services group. With a distinctive business model, Barclays Capital provides corporates, financial institutions,...

People on the move: Rodge focuses on enhancing assets at Rockspring.
October 3, 2005... James Rodge has been appointed as senior asset manager for Rockspring Property Investment Managers. Rodge joins Rockspring, formerly PRICOA Property Investment Management, from property consultant Drivers Jonas where his clients included...

People on the move: Isis invests in Marsh.
October 3, 2005... Isis Equity Partners has strengthened its smaller companies investment team with the appointment of Henrietta Marsh to lead the Aim investing for the Baronsmead venture capital trusts (VCTs). Marsh was previously responsible for managing...

People on the move: Barclays aims to boost Capital team with Orpin.
October 3, 2005... Barclays Capital, the investment banking division of Barclays Bank, has appointed Gavin Orpin as an associate director within the UK pensions solutions team. Orpin joined from Psolve Asset Solutions, where he was a principal, advising...

People on the move: Farr brings deficit experience to PWC.
October 3, 2005... Richard Farr has re-joined the pensions practice of Pricewater-houseCoopers (PWC) following his secondment to the Pensions Regulator. Farr helped advise the regulator and the Pension Protection Fund on how to formulate its approach to...

People on the move: Alexander has Midas touch.
October 3, 2005... Liverpool-based fund manager Midas Capital has appointed John Alexander as development manager. As well as responsibility for growing Midas' range of insurance company and supermarket distribution links, Alexander will also develop and...

News Just In... : Employer proposals trigger disputes over public sector pension schemes.
October 3, 2005... Mass strikes are set to take place in the public sector as unions and government clash over the proposed increase in the local government workers' retirement age. Proposals by local government employers to the Office of the Deputy Prime...

News Just In... : Mercer advises caution when setting PPF levy.
October 3, 2005... Another major pensions consultant has joined the chorus of warnings over the dangers of the risk-based levy to be introduced by the Pension Protection Fund (PPF) next April. Mercer Human Resource Consulting (MHRC) said the financial...

News: Weidmuller restructure plans halted by PPF levy dispute.
October 10, 2005... Byline: Daniel McAllister Electrical manufacturer Weidmuller has been shocked by credit ratings agency Dun & Bradstreet's (D&B) alleged failure to calculate the impact of a financial restructure on its Pension Protection Fund's (PPF)...

News: Equity markets ignore deficits when making valuations.
October 10, 2005... UK equity markets do not recognise pension deficits when valuating a company, according to research by consulting actuaries. Research by Punter Southall Transaction Services, the specialist mergers and acquisitions division of Punter...

News: Hewitt picks French from rival Watson.
October 10, 2005... Watson Wyatt has lost one of its senior investment consultants to rival consultancy Hewitt Associates. Caron French, former equity partner at Watson, has jumped ship to join Hewitt's client development team. Hewitt sees the appointment...

News: Staff miss out on pay rises as employers limit liabilities.
October 10, 2005... Byline: Gill Wadsworth Employees could miss out on annual pay rises as UK employers attempt to avoid escalating pension costs, advisers have warned. Employers are increasingly offering annual bonuses instead of pay rises to stop...

News: Annuity Bureau partners HSBC to offer consumers more choice.
October 10, 2005... The Annuity Bureau has secured a partnership with HSBC Bank, highlighting the need for consumers to shop around for annuities on the open market. Under the new partnership, The Annuity Bureau will provide specialist advice and 'whole of...

News: Just Retirement releases low interest rate equity.
October 10, 2005... Just Retirement, the retirement solutions specialist, has launched a flexible equity release plan with the lowest interest rate on the market. The product allows clients to draw down money only when they need it, with a fixed interest rate...

News: Lloyd's invest in diversification.
October 10, 2005... The GBP370m Lloyd's superannuation scheme has appointed four new fund managers in a bid to boost returns and lower risk. Aegon Asset Management and Goldman Sachs Asset Management have picked up fixed income mandates worth GBP185m and GBP56m...

News: Top six storm ahead to benefit from takeovers.
October 10, 2005... Six asset managers have been named as likely beneficiaries of the trend to consolidation in the fund management industry. According to Morgan Stanley equity research, Goldman Sachs Asset Management (GSAM), JPMorgan, Citigroup, Mellon,...

News: LDI impacts on WH Smith trio.
October 10, 2005... Three asset managers have become casualties of a move to liability-driven investment (LDI) by the pension fund of one of the UK's best known high street retailers. The GBP5.83bn WH Smith scheme has dropped Barclays Global Investors (BGI),...

News: Newham hires Blacket to review selection process.
October 10, 2005... The London Borough of Newham pensions fund has appointed monitoring and measurement company Blacket Research to review the effectiveness of its investment manager selection process. Blacket's manager selection evaluation methodology will...

News: D&B rejects Mercer's levy fears.
October 10, 2005... Byline: Daniel McAllister Claims by a major consultant that calculation of the Pension Protection Fund's (PPF) risk-based levy does not take into account the solvency of parent companies has been dismissed by the PPF and rating agency Dun...

News: NAPF predicts failed schemes will cost PPF.
October 10, 2005... The National Association of Pension Funds (NAPF) has accused the pension protection fund (PPF) of being inherently unfair and claims its goals are unrealistic. In a response to the PPF consultation, Christine Farnish argued that it was...

News: Business schools join chorus of disapproval.
October 10, 2005... Academics have attacked the government's Pension Protection Fund (PPF) levy proposals, saying it will hit the weakest schemes the most. Anthony Neuberger at Warwick Business School and David McCarthy at Tanaka Business School, Imperial...

News: TUC claims tax cuts are no competition for compulsion.
October 10, 2005... Byline: Daniel McAllister Tax incentives will fail to end the pensions crisis and will create inequality according to the Trades Union Congress (TUC), as it continues to push for compulsion despite opposition from the industry. Cuts in...

News: JLT benefits from employee opinions.
October 10, 2005... Companies will be able to evaluate how valuable employees consider their benefits following the launch of a benefits value audit from Jardine Lloyd Thompson (JLT). JLT said the service, which will be run by its benefits solutions arm,...

News: King launches UK equity fund.
October 10, 2005... King & Shaxson, formerly Swiss Life Asset Management, has launched a UK equity hedge fund targeted at institutional investors. The King & Shaxson premier fund follows a long/short strategy and has a minimum investment limit of GBP100,000....

News: Information sharing fuelled electronically.
October 10, 2005... The GBP20bn Mineworkers' Pension Scheme and British Coal Staff Superannuation Scheme have stepped up their corporate governance using eMeetings and eShare. The move will allow the scheme trustees to have access to historical information...

News: Trustee - Challenges lie ahead.
October 10, 2005... Byline: Clive Gilchrist As the autumn series of trustee meetings approaches, two topics are vying for the top slot on trustees' agendas - training, and the relationship between trustees and sponsoring employers. Faced with the scope...

News: Letters.(Letter to the editor)
October 10, 2005... HARD ONE TO FOLLOW Martin Potter's view on page one on the Pension Protection Fund's risk-based levy (PW 19.09.05) is difficult to follow. Whether there are many or few rated low-risk does not alter the fact that the strong companies will...

News: ATS acquires Wolanski's Sipps.
October 10, 2005... Byline: Kalpana Limbachia Self-invested personal pension (Sipp) provider Alliance Trust Savings (ATS) has acquired Wolanski & Co Trustees, making it one of the biggest Sipp providers in the UK. ATS will acquire all Wolanski's Sipp and...

News: SWIP homes in on developing property market.
October 10, 2005... Scottish Widows Investment Partnership (SWIP) has launched the UK's first European real estate fund in a move to exploit the growing and increasingly profitable European property sector. The fund will hold a portfolio of 25 to 45 stocks,...

News: Ombudsman watch.
October 10, 2005... Byline: Norman Russell Fine distinctions Most readers will be involved with occupational pension schemes that have their main administration in the United Kingdom. If so, they will know trustees must now secure that the scheme's...

News: Regulations in state of disarray.
October 10, 2005... Byline: Kalpana Limbachia Actuaries have called for a radical review of the state pension and better incentives for workplace schemes ahead of the Pensions Commission's report due next month. The Association of Consulting Actuaries...

News: Saving too little to retire on time.
October 10, 2005... Millions of people will be working beyond the state pension age within the next few years, according to a life company. Research by Prudential revealed that 2.5 million people will work past the state pension age in the next five to 10...

NAPF Notice Board.
October 10, 2005... The NAPF's annual survey has become a valued source of pensions data to companies and organisations throughout the industry. With a high percentage response rate, the quality and relevance of information gathered becomes even more important....

Governance Update: Performance evaluation across the board.
October 10, 2005... BHP Billiton plc will be holding its Annual General Meeting next week (20 October 2005). We would like to highlight the extensive performance evaluation procedures the company has put in place, which have convinced us to accept the company's...

Spotlight: Learning from their mistakes.
October 10, 2005... Byline: Bryan Gordon Will the Pension Protection Fund (PPF) experience the same mistakes as its US counterpart, the Pension Benefit Guaranty Corporation (PBGC)? After 30 years' operation, the PBGC is now heavily in deficit, which has...

Opinion: Leader - Hung, drawn and quartered without a fair trial.
October 10, 2005... Byline: Gill Wadsworth The government's pension lifeboat has found itself in stormy waters this week as the consultation period reaches its conclusion. The Pension Protection Fund (PPF) came in for heavy criticism on all sides as the...

Opinion: Personal View - Taking time to review and understand scheme administration.
October 10, 2005... Byline: Jocelyn Blackwel The Pensions Act 2004 requires trustees to be familiar with the trust deed and rules, statement of investment principles, statement of funding principles and any other documentation setting out administration...

Opinion: Inside View - Guilt-free weight gain in Japanese equities.
October 10, 2005... Byline: Nigel Richardson Japanese equities have experienced a remarkable revival in sentiment in the past few months, rising by around 20%, compared with gains of around 7% in Europe and just 3% in the US. The question in many peoples'...

People on the Move: Party of four offer Insight into the property sector.
October 10, 2005... Byline: Daniel McAllister Insight Investment Management has made a series of hires to its property team, appointing Veronica Gallo-Alvarez as director, European property, Richard Walters as a director of the industrial sector and Oliver...

People on the Move: Alexander heads to Close Finsbury.
October 10, 2005... Close Finsbury Asset Management has appointed Stuart Alexander as head of distribution. With nearly 20 years' experience, Alexander joins from Insight Investment where he was director of global partners. Prior to this he held sales...

People on the Move: MLIM adds Ritchie to European team.
October 10, 2005... Merrill Lynch Investment Managers (MLIM) has appointed Andrew Ritchie as an analyst. Ritchie will co-cover European Financials alongside Niall Gallagher, who manages the Merrill Lynch European dynamic fund, and will report to James...

People on the Move: Davis joins Morley multi-managers.
October 10, 2005... Morley Fund Management has appointed Shari Davis as assistant fund manager to its expanding property multi-manager team. Davis joins from DTZ Investment Management where she was a senior investment strategist working in the investment...

People on the Move: Bish-Jones gets a Royal welcome.
October 10, 2005... Mutual life and pension company Royal London has appointed Trevor Bish-Jones to its board as a non-executive director. Bish-Jones, chief executive of the Woolworths Group since March 2002, has held various senior positions at the Dixons...

News: UK system must opt for compulsion model.
October 17, 2005... The government must not be afraid of making difficult decisions about compulsory pension savings ahead of the Pensions Commission's report due next month, one of its main proponents said. Nick Sherry, shadow minister for superannuation in...

News: Industry remains concerned over insolvency measures.
October 17, 2005... The Pension Protection Fund's (PPF) update has been welcomed by the industry, but there are still concerns over how the insolvency risk will be measured. The PPF relaxed its rules saying it will take contingent assets into account, as well...

News: Gainsford leaves Mercer for Hewitt.
October 17, 2005... Hewitt Associates has poached Mercer Human Resource Consulting's Jonathan Gainsford in its continued assault on the pensions market. Gainsford had been with Mercer for more than 20 years where he was European partner, and joins Hewitt's...