Report
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July, 2012
Global trend to transfer pension risk is accelerating
The trend for defined benefit (DB) pension funds to transfer pension risk to third parties is both global and accelerating, according to consultants Mercer. Low interest rates, volatile equity markets, rising life expectancy and the economic downturn are driving this trend, and forcing company finance executives to find ways to shed pension ...
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July, 2012
Pension funds advised to assess impact of Libor manipulation
Pension funds should ask their fund managers if their assets have been affected by the recent scandal involving Barclays in the manipulation of Libor, according to the National Association of Pension Funds (NAPF). NAPF head of corporate governance, David Paterson, said: “The impact of Libor manipulation on pension funds is hard to pin down, and could ...
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July, 2012
Investors welcome binding shareholder votes on executive pay
News that the government plans to bring in a binding shareholder vote on executive remuneration on a triennial basis has been welcomed by two key investment trade bodies. The move by business secretary Vince Cable came after the so-called “shareholder spring” which saw a wave of votes against executive remuneration policies at high-profile corporates ...
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July, 2012
Europe’s woes to stress German banks
Lombard Odier’s Stephanie Kretz has warned that Germany cannot save the euro on its own and is, in fact, increasingly heavily exposed to the problems of the Eurozone periphery countries. Following a recent statement by Germany’s Angela Merkel that: “Germany is strong. Germany is the economic engine and anchor of stability in Europe…but Germany’s ...
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April, 2012
Full steam ahead on infrastructure investment
The National Association of Pension Funds (NAPF) and the Pension Protection Fund (PPF) have signed a memorandum of understanding with the Treasury over an initiative to facilitate pension fund investment in infrastructure. According to comments from NAPF chief executive Joanne Segars, and PPF chief executive Alan Rubenstein, at the NAPF Investment ...
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April, 2012
Ultra-long Gilts divide opinion
Different views have been put forward on the idea of ultra-long government bonds with a term of 100 years. In support of the concept, JLT Pension Capital Strategies director, Antony Barker, said that criticisms of the proposals have been overdone. “There are good investor-specific, strategic and overall market-enhancing reasons to welcome a new bond that ...
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April, 2012
Euro debt is greatest concern for global economy
The Eurozone debt crisis is the biggest problem for the global economy, followed by the possible effect of a Middle East conflict on oil supplies and the continuing slowdown in China, according to Invesco chief economist John Greenwood. Greenwood said that the next test for the Eurozone is whether euro-area banks can meet the 9% tier one capital ...
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April, 2012
Discussions continue over £30 billion pan-London fund
London’s 34 separate pension schemes for 32 boroughs, the City of London Corporation and the London Pensions Fund Authority (LPFA), could be merged into a single £30 billion fund under proposals currently being considered. The superfund could save administration costs by pooling assets, and politicians have suggested it could invest up to 7.5% of ...
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April, 2012
Barings changes emerging market risk profile
Baring Asset Management said it is has identified a more risk-favourable environment in emerging markets and changed the asset allocation of its Dynamic Emerging Markets fund to reflect this. Barings co-manager of the Dynamic Emerging Markets funds, Hartwig Kos, said that last summer and autumn was a highly volatile period, due to the European debt crisis ...
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April, 2012
Stange behaviour in financial crisis could hide a warning
Fund manager RWC has picked out what it has called “thirteen bizarre goings on in financial markets” which it says should make investors wary. Amongst the 13 oddities is the fact that many developed economies have never been in a worse position financially, but can still borrow money at lower rates than ever. For example, US government debt is higher ...
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