Pensions Week articles from September 2007

Pensions Week archives from September 2007

News: Dalton yet to rise above low rankings.
September 3, 2007... Byline: Ryan Harrison Dalton Strategic Partnership has struggled to turn around the poor performance it inherited from King & Shaxson Asset Management (KSAM) after buying the specialist manager's pensions business in January. Dalton...

News: J O Hambro bags Bennett.
September 3, 2007... Byline: Hannah Williams Burgeoning boutique firm J O Hambro Capital Management (JOHCM) has appointed former Northern Rock boss, Bob Bennett, as non-executive director. Bennett was with Northern Rock for 13 years, most recently as...

This week: The gender gap won't close itself.
September 3, 2007... Given that women are supposed to be far better at multi-tasking than men, it came as something of a surprise that very few females make up our pension trustee boards. I would have thought the unpaid, onerous nature of trustee work would...

News: PAG accuses Treasury of dragging its heels.
September 3, 2007... Byline: Gill Wadsworth Campaigners fighting for pension compensation have singled out the Treasury as the key obstacle in its pursuit of justice following talks with the Department for Work and Pensions (DWP) last month. Mike O'Brien,...

News: Number of UK pensioners is fast catching under-16s.
September 3, 2007... Byline: Hannah Williams The UK's elderly population has rocketed in the past two years, with the number of pensioners aged over 85 reaching a record GBP1.2m, government statistics have shown. The latest figures from The Office for...

News: UK funds defend lead role in GSK class action.
September 3, 2007... Byline: Ryan Harrison Two UK pension schemes have defended their decision to front a class action lawsuit against GlaxoSmithKline (GSK) following criticism their lawyers had made moves to block German scheme efforts to be lead plaintiffs....

News: Three strikes planned for Augusta.
September 3, 2007... Byline: Hannah Williams Emergency talks at beleaguered helicopter manufacturer Augusta Westland have failed to avert strikes over the closure of the company's final salary pension scheme. Previous industrial action had been suspended,...

News in Brief.
September 3, 2007... - Pension deficits continued to fall last month, despite market volatility, figures from Aon Consulting showed. The largest 200 UK pension funds' aggregate deficit dropped from GBP13bn to GBP10bn in August, with rising bond yields and...

News: Admin market hots up amid M&A predictions.
September 3, 2007... Byline: Hannah Williams A host of new players are crowding into the pensions administration market, despite speculation more merger acti-vity is on the way. Last month saw expanded offerings announced from both the Railways pension...

News: DC choice could leave members out of pocket.
September 3, 2007... Byline: Hannah Williams Pension scheme members could be losing out on thousands of pounds each year by cautiously opting for default funds, investment managers warned. Fidelity International predicted as many as 90% of defined...

News: Letter.
September 3, 2007... Watson Wyatt consultant Andrew Reid suggests that the potential demand for financially strong institutions to use their covenant to support pension schemes is huge. This statement may be misleading; in our experience trustees and the Pensions...

News: Green funds grow up.
September 3, 2007... Byline: Hannah Williams Institutional investors are reaping the rewards of going green after research revealed ethical funds had outperformed their mainstream rivals over the past three years. The study carried out by search engine...

News: Tax bills for SSAS schemes.
September 3, 2007... Byline: Hannah Williams Small self-administered pension scheme (SSAS) clients could be facing hefty tax bills because of overdue rent payments, providers have warned. Rowanmoor Pensions, said potential tax charges were looming for all...

News: Company comment - Shopping for assets that can add value.
September 3, 2007... Byline: Sarah Slater There are lots of gloomy stories about leading retailers complaining of tough trading conditions, profit margin squeezes and concerns about the housing market. Earnings growth is constrained and there is a large...

News: Investors should lock in rather than cut and run.
September 3, 2007... Byline: Ryan Harrison Pension investors must avoid the urge to flee from higher risk assets in light of recent market volatility, and should instead opt for strategies that lock in future returns incrementally, consultants warned. ...

News: Invesco lands GBP11m equity mandate.
September 3, 2007... Byline: Ryan Harrison The Royal Society of Chemistry pension fund has awarded Invesco Perpetual a GBP11m high-alpha UK equity mandate. The brief will be overseen by Neil Woodford, head of investments and member of Invesco's UK equity...

News: Trustees still seek alpha returns despite surpluses.
September 3, 2007... Byline: Gill Wadsworth Improvements in occupational pension funding levels will not deter schemes from investing in return-seeking assets, a global consultant claimed. A Watson Wyatt poll of trustees with pension assets worth over...

News: Trustee boards lack the feminine touch.
September 3, 2007... Byline: Hannah Williams Pension scheme trustee boards are still dominated by middle-aged men, despite strenuous efforts to encourage diversity, research has shown. A study carried out by Hymans Robertson found just 18% of trustees...

News: Pensions Trust review leads to win for SLI.
September 3, 2007... Byline: Ryan Harrison Standard Life Investments (SLI) has secured a GBP140m gilt mandate for the Pensions Trust following a revamp of the pension fund's fixed income portfolio. SLI already manages UK corporate bonds for the trust, and...

News: Housing scheme sees deficit drop GBP103m from 2005.
September 3, 2007... Byline: Ryan Harrison The Social Housing Pension Scheme (SHPS) has slashed its deficit by over a third to GBP180m, following healthy investment returns and high bond yields. SHPS' interim valuation found its deficit had fallen by...

Current Affairs: Head to Head.
September 3, 2007... Byline: Ryan Harrison 1 - Does a 130/30 strategy have a place in UK pension fund portfolios, and if so, how does it fit in? 2 - How competent are traditionally long-only experts at delivering short- extension strategies? 3 - How...

Current Affairs: Going nuts about pension planning.
September 3, 2007... Byline: Raj Mody The other weekend, my wife and I were taking a summer stroll through Regent's Park. The fresh air had helped me clear my head of a thorny client issue involving executive reward. But then, unfortunately, we noticed a few...

The Insider: Personal view - Trustees must be prepared to flex their muscles to protect scheme members.
September 3, 2007... Byline: Adam Bushby Private equity has been much in the news of late, with headline bids for household names, such as Boots, Sainsbury's and Jaguar, 10% tax rates, and a high-profile inquiry and interim report by MPs on the Treasury...

The Insider: Technical view - Breaking down pension barriers.
September 3, 2007... Byline: Corinne Merla and David Gallagher In July this year, the European Court of Justice (ECJ) ruled on tax obstacles to cross-border pensions, in the case of the European Commission vs Belgium. The commission argued that various...

Industry Watch: Governance - Remuneration may cause major mutiny.
September 3, 2007... Byline: Tom Powdrill Another week, another piece of research shows that the public does not support the high levels of executive pay we see in the UK. This time it is research from the left-wing Fabian Society. The society polled members...

Industry Watch: Notice board - NAPF seminars and forums.
September 3, 2007... The deregulation review - sustaining good provision? September 19, 09:30 - 12:45; NAPF, NIOC House, 4 Victoria Street, London SW1H 0NX If you are a pension policy maker, pension fund manager or trustee, then this half-day NAPF seminar...

Industry Watch: View from the Bridge.
September 3, 2007... Simple I have always thought that, in essence, pensions are simple. You or your employer gives some money to someone else. That person looks after it and gives it back to you when you need it, ie when you are no longer in paid employment....

Pensions Workout: Multi-Asset Class Investing Intermediate Level.
September 3, 2007... In the last issue, we talked about the basics of multi-asset class investing. This week, we take a detailed look at the asset allocation process. Definitions There are two elements to asset allocation: strategic asset allocation and...

On the move: PPI seeks new chair as Ross steps down.
September 3, 2007... Byline: Ryan Harrison Tom Ross, one of the founders of the Pensions Policy Institute (PPI), is to step down as chairman at the independent think-tank's next annual general meeting (AGM) after six years in the role. Ross, a past...

On the Move: Going Places - LaSalle chooses Ling for Far East.
September 3, 2007... Investment Management has grown its Far East operations with the appointment of Philip Ling (pic) as managing director for Asia Pacific. Based in Singapore, Ling will assume responsibility for the development of LaSalle's overall business...

On the Move: Going Places - Two additions for Watson Wyatt.
September 3, 2007... Watson Wyatt has shored up its real estate and hedge fund business with a brace of hires from Morley and Morgan Stanley. Douglas Crawshaw, who has more than 10 years' investment experience, joins Watson Wyatt's property team from Morley...

On the move: Going Places - Smith joins Eversheds from Muckle.
September 3, 2007... Law firm Eversheds has hired Nick Smith (pic) as an associate in a bid to strengthen its pensions team. He joins with seven years' experience at Muckle, where he advised clients on non-contentious employment and pensions issues. In...

Top 4 Moves.
September 3, 2007... 01 - Mark Belchamber OLD: Head of pensions at the British Medical Association NEW: Will become a senior consultant at Hymans Robertson Tel: 020 7886 8440 02 - Zillah Bingley OLD: Head of corporate business development at...

Special Supplement: Biographies.
September 3, 2007... Eddie Middleton, Director of liability-driven investment Resolution Asset Management Eddie joined Resolution's fixed interest team in 1996 after 10 years at the Co-oper-ative Insurance Society. Until early 2004 he was responsible...

Special Supplement: Introduction.
September 3, 2007... Byline: Gill Wadsworth Advocates of liability-driven investment (LDI) have long tried to explain that the strategy is as much about generating extra return as about matching cash flows. No serious economist could look at the general...

Specail Supplement: Benefits beyond risk.
September 3, 2007... Byline: Matthew Craig For defined benefit (DB) pension fund trustees, the sharp market falls in August 2007 will have been a reminder that investment risk should never be underestimated. To its proponents, liability-driven investing...

Spcial Supplement: The reactive generator.
September 3, 2007... Byline: Gill Wadsworth One of the most difficult challenges facing pension fund trustees is when to derisk their portfolios. Equity market volatility in recent times has served as a stark reminder that what goes up will inevitably come...

Special Supplement: Forging a strong bond.
September 3, 2007... Byline: Duncan Rankin The growing interest in liability-driven investment strategies has focused attention on the way bonds and swaps can be used to match liabilities. Defined benefit schemes are now matching their liabilities to reduce...

Special Supplement: What are the key elements in alpha generation for liability-driven investing (LDI)?
September 3, 2007... Byline: Matthew Craig Duncan Rankin: LDI thinking has served to make people think more about what alpha can do for them than possibly they have in the past. If you have minimised the risks in terms of your liabilities, by implementing...

Special Supplement: Playing the long game.
September 3, 2007... Byline: Chris Nichols I am often asked what markets or asset classes offer the best investment opportunities for generating returns for pension schemes. While it's easy enough to discuss our research-driven house view of different asset...

News: Capita deal stirs up PA competition.
September 10, 2007... Byline: Hannah Williams A merger between back office giant Capita Hartshead and Higham Dunnett Shaw is the first in a flurry of takeover activity to hit the administra-tion market, as competition for the personal accounts contract hots up....

News: Bush returns to Hewitt fold.
September 10, 2007... Hewitt Associates has lured a senior consultant back from rival advisers Lane Clark & Peacock (LCP), just months after his defection. David Bush left Hewitt in March after a decade with the company, to become a partner at LCP. ...

This week: A little respect goes a long way Week.
September 10, 2007... Byline: Gill Wadsworth, Editor, Pensions The word 'commuter' is nearly always followed by the word 'misery' in press reports. Leaves on lines, the wrong kind of rain and signal systems dating back to the Mesozoic era have been all been...

News: Reform consensus in doubt after row.
September 10, 2007... Byline: Hannah Williams Political consensus over key policies in the planned pension reform has been thrown into doubt following a row between departmental leaders. The quarrel broke out between work and pensions secretary, Peter Hain,...

News: Bush to offer risk control advice to Hewitt's clients.
September 10, 2007... Byline: Hannah Williams Bush has more than 13 years' experience in pensions consultancy, covering areas such as scheme design, mergers and acquisitions, liability management, accounting for pension costs and compliance. He said:...

News: Tube workers to get full pensions package.
September 10, 2007... Byline: Ryan Harrison Metronet maintenance workers have managed to sidestep reduced pension benefits under the Pension Protection Fund (PPF) after crippling tube strikes forced Transport for London (TfL) to guarantee a full benefits...

News: Satchell to chair actuarial board.
September 10, 2007... Byline: GW A former Friends Provident chief executive and chair of the Association of British Insurers (ABI) has taken up the role of chair of Barnet Waddingham's management board. Keith Satchell will take up the reins at the actuarial...

News in Brief.
September 10, 2007... Global financial market gloom looks set to continue into October after research found a third of investors believed share prices of FTSE companies will suffer a further drop. The poll by the stocks and shares website www.advfn.com revealed...

News: FAS regs put an end to forced annuities.
September 10, 2007... Byline: Gill Wadsworth The government has finally halted the forced purchase of annuities by pension funds that qualify for the Financial Assistance Scheme (FAS) following years of campaigning by the Pensions Action Group (PAG). As...

News: Governance must improve to lock in returns.
September 10, 2007... Byline: GW Pension schemes need to improve their governance structures if they want to protect positive performance in their portfolios, a global consultant claimed. Nick Horsfall, senior investment consultant at Watson Wyatt, said...

News: Trustees need helpful tools.
September 10, 2007... Byline: GW Pension trustees need better tools to prevent them facing litigation and hefty fines, a governance consultant claimed. Following the maladministration claim against the Centrica pension scheme following its failure to...

News: Government urged to tackle inequality.
September 10, 2007... Byline: Hannah Williams The government has been urged to consider a postcode-based retirement strategy when setting the state pension age in a bid to tackle inequalities in longevity. Legal & General announced plans to pay higher...

News: Local authorities flee fixed income.
September 10, 2007... Byline: GW Local authority pension schemes are deserting fixed income in their droves as alternative assets and overseas equities continue to gain popularity. A Fidelity International survey revealed three-quarters of the UK's public...

News in Brief.
September 10, 2007... The Pension Protection Fund (PPF) has hired pension experts Ann Berresford and Anthony Holland as non-executive members to its board. Lawrence Churchill, chairman of the PPF, said: "They will bring to the board a wealth of experience from...

News: Retention is the key to provider success.
September 10, 2007... Byline: Ryan Harrison UK life and pension firms' focus on recruiting new business is damaging the potential value of their clients, consultants warned, and only a 2% increase in retained customers would be as beneficial as a year's worth...

News: CEO pensions amass almost GBP1bn.
September 10, 2007... Byline: Hannah Williams The UK's top directors have amassed a collective pension pot worth nearly GBP1bn, research has shown. Figures collected by the Trades Union Congress (TUC), found the average chief executive can retire aged 60 on...

News: SEI takes sole credit for triple multi-asset win.
September 10, 2007... Byline: RH Fund manager SEI has secured a trio of small multi-asset mandates for UK pension funds worth a total of just over GBP30m. SEI was appointed by Perenco UK Pension Trustee, the pen-sion fund for Perenco, the oil and natural...

News: Buyout market stirs as Rank looks to sell assets.
September 10, 2007... Byline: Ryan Harrison Banks and insurance companies are bracing themselves for a decision from the Rank Group on whether it will be the next entrant into the estimated GBP5bn pensions buyout market. The casino and bingo operator...

News: Goodyear ditches advisers for Hewitt.
September 10, 2007... Byline: GW The GBP500m Goodyear Dunlop Tyres pension fund has removed Watson Wyatt and Aon Consulting from scheme advisory roles, hiring Hewitt Associates in their place. Watson Wyatt had been employed as adviser to Goodyear Dunlop's...

News: Pension concerns still not enough to encourage saving.
September 10, 2007... Byline: SO Apathy among British adults towards retirement savings has continued unabated, with more than a quarter still failing to make any provision for retirement, research found. Alliance Trust's annual retirement confidence index...

Current Affairs: Talking Heads.
September 10, 2007... Byline: Gill Wadsworth 1 - Are pension funds doing enough to lock in returns? 2 - What are the best ways to protect against downside risk? 3 - Who should be responsible for helping pension funds protect the upside? 4 - Why...

Current Affairs: Demystifying final salary payments.
September 10, 2007... Byline: Steve Bee I've been having some interesting conversations lately about what happens when members of final salary company pension schemes reach retirement. The reason I'm mentioning it is it seems to me hardly anyone appreciates how...

The Insider: Personal view - Placing scheme buyouts under the hammer is a win-win situation for all.
September 10, 2007... Byline: Gordon Fletcher Over the past year, the pension press has been awash with commentary on the explosion in insurers willing to write bulk annuity business. With new competition, intense speculation on product innovation, price falls...

The Insider: Technical view - Sleep easy with a long-term outlook.
September 10, 2007... Byline: Colin Mouque Recent market events will have caused you much concern if you are a trustee or employer sponsoring a defined benefit pension scheme. Having witnessed stock market volatility, and overall decline, around the world...

Industry watch: Governance - A backlash against do-gooder investing.
September 10, 2007... Proponents of shareholder engagement are sometimes still caricatured as pursuing a political agenda. In reality, most investor engagement is concerned with ensuring companies are well run or pursuing a sensible business strategy. The...

Industry watch: Notice board - NAPF seminars and forums.
September 10, 2007... The deregulation review - sustaining good provision? September 19, 09:30 - 12:45, NAPF, NIOC House, 4 Victoria Street, London SW1H 0NX Join an audience compri-sing pension scheme executives, Department for Work and Pensions officials,...

The Insider: View from the bridge - Investment advice.
September 10, 2007... Byline: Nathan Willmott Easily missed at the height of our delightful summer was a High Court decision highlighting a novel method by which claims may be pursued against pension providers. The substance of the dispute was far from novel,...

Pensions workout: Multi-Asset Class Investing - Advanced Level.
September 10, 2007... So far in this three-part series, we have talked about the basics of multi- asset class investing and have taken a detailed look at the asset allocation process. This week, we look at how multi-asset funds can be put to use specifically for...

On the move: Xafinity Paymaster lures Williamson.
September 10, 2007... Byline: Ryan Harrison Xafinity Paymaster has drafted in Andy Williamson (pic) from Fidelity International to bolster its recent back office contract win for buyout player Pension Insurance Corporation (PIC). Williamson joins as an...

On the move: Going places - Boyfield leaves Mercer for WW.
September 10, 2007... Watson Wyatt has hired Richard Boyfield as a senior consultant from rival Mercer Human Resource Consulting to join its Manchester office. He joins as a specialist in employee benefits consulting and will report to John Mason, Manchester...

On the move: Going Places - Buyout firm nets Schoeb and Briscombe.
September 10, 2007... Paternoster has appointed Patrick Schoeb as head of credit and David Briscombe as a director of finance and actuarial. Briscombe joins from ING based in India, where he was chief financial officer. Prior to this he gained nearly 30 years'...

On the move: Going Places - Roberts moves up the ranks at BDO.
September 10, 2007... BDO Stoy Hayward Investment Management has promoted Helen Roberts to the position of finance director. Roberts was previously chief accountant for the company, and in her new role she will report to chief executive Richard Spilg. ...

On the move: Top 4 moves.
September 10, 2007... 01 - Tom Ross OLD Steps down as chairman of the Pensions Policy Institute at its next annual general meeting in June 2008 Tel: 020 7848 3744 02 - Philip Ling OLD Chief executive officer of investment management for Lend...

Special Focus: Introduction.
September 10, 2007... Byline: Gill Wadsworth Every now and again the industry is presented with an investment strategy that provokes considerable interest from institutional investors and kicks up something of a storm in the financial press. 130/30...

Special Focus: Beat the odds.
September 10, 2007... Byline: Kristen Paech 130/30 funds have taken the investment world by storm; in the US the value of assets managed in such strategies is estimated to have surpassed US$50bn (GBP25bn), while in Australia the superannuation industry's...

Special Focus: Welcoming the dawn of 130/30.
September 10, 2007... Byline: Ian Harvey Historically, investors have awaited the launch of a new product with the kind of anxiousness that one usually associates with a first date. That is certainly true of enhanced equity strategies - so-called 130/30 funds -...

Specail Focus: Company - A word from the sponsor...
September 10, 2007... Background The Bank of NY Mellon Corporation is one of the largest global financial service companies, with US$18trn* under management in assets under administration and custody. Mellon offers a broad array of services enhanced by...

News: DWP's olive branch winds up FAS victims.
September 17, 2007... Byline: Gill Wadsworth Government efforts to engage with victims of pension scheme wind-up who are caught in the solvent employer trap have met with fury from those still waiting for compensation. In spite of last month's promises...

News: Hotel vies for hedge funds.
September 17, 2007... Byline: Ryan Harrison The GBP300m InterContinental Hotels Group pension fund has laid out plans to plough 10% of its portfolio into hedge funds. The scheme, which currently has a deficit of GBP60m, is set to allocate GBP10m to a...

News: This Week - If only DC members knew...
September 17, 2007... Byline: Gill Wadsworth - Editor, Pensions Week You might imagine I wasn't exactly dumbstruck to read Hewitt Associates' findings that defined contribution (DC) schemes aren't run all that well. According to the consultant, the UK's...

News: Hately's investment strategy helps ABF.
September 17, 2007... Byline: Ryan Harrison The architect of the GBP1.4bn Kingfisher pension fund's foray into 130/30 funds has joined Associated British Foods (ABF) to accelerate its scheme's exploration of more exotic asset classes. Colin Hately, who was...

News: FTSE4Good adds 22 UK funds that meet ethical rules.
September 17, 2007... Byline: Hannah Williams A record number of UK companies have been included in the FTSE indices dedicated to socially responsible equities following increased shareholder engagement from pension fund investors. Twenty-two UK firms will...

News: Multi-manager flourishes in spite of key departures.
September 17, 2007... Byline: Gill Wadsworth A multi-manager targeting smaller UK pension funds has added GBP270m to its assets under management in the past year, in spite of losing two key members from its investment team. Investment Solutions, which has...

News: PW survey highlights buyout doubts.
September 17, 2007... Byline: Hannah Williams UK pension funds remain unconvinced by the buyout market, despite the flurry of activity from new entrants, research showed. A study carried out by Pensions Week found that 50% of scheme managers felt current...