Brown axes pension term assurance in this year’s Budget, causing disappointment and consternation across the industry

The changes to alternatively secured pension (ASP) contained in the Budget have failed to ignite passions, with many in the industry saying it was exactly what they expected.

Many people who lost their pensions will continue to get a very raw deal from more tinkering with the Financial Assistance Scheme. When the pensions bill returns to the Commons, the Liberal Democrats will ensure that MPs have the opportunity to vote on upgrading the compensation package to Pension Protection Fund levels of award.”
David Laws - Liberal Democrat shadow work and pensions secretary

Gordon Brown has boosted funding of the Financial Assistance Scheme (FAS), sparking cynics to label the move as currying favour before becoming leader, while unions have said it is still not enough.

Industry experts have branded changes in inheritance tax (IHT) contained in Gordon Brown’s 2007 Budget as out of tune with reality and riddled with confusion for the ordinary man.

A former US vice-president has urged UK pension schemes to fully integrate sustainable investment into their strategies and to look seriously at the climate crisis.

Two investment experts have clashed over whether lifestyle funds or target returns is the way forward for defined contribution (DC) schemes.

Ed Balls, economic secretary to the Treasury, has stated that the government’s commitment to skewing issuance of gilts towards long-dated and index-linked ones will continue for the next financial year.

Bulk buyout (BBO) firms came under fire at the NAPF investment conference as several delegates harangued speakers about how it could ever be a sensible solution.

The current trend towards greater defined contribution (DC) workplace pension provision must be revised to avoid disaster, according to Lindsay Tomlinson, vice-chairman of Barclays Global Investors, Europe and former chair of the Investment Management Association.

The Pensions Regulator has ruled out issuing guidance on mortality assumptions, with chairman David Norgrove saying if it did come up with a single standard “it would probably be wrong”.

Consultants are divided as to whether February’s equity market correction was just a blip or the sign of more bad news to come, with some urging caution while others foresee strong equity performance in the coming months.

February’s correction gave hedge fund managers a case of the jitters, but many were able to maintain positive figures despite the shock waves sent through the investment industry.

The leisure market will be the engine driving the economy in the 21st century. In a number of economies, 20% of the workforce is already employed in the provision of goods and services for leisure activities. Accordingly, there is a large range of investment opportunities in leisure markets. In order to invest successfully in this area, it is necessary to seek out existing or nascent trends. In the latest edition of Global Investor Focus, Credit Suisse research looks at three major trends in leisure.

JPMorgan has launched the first international index designed to benchmark and trade longevity risk and measure and manage mortality exposure.

Investec Bank and Blackfish Capital Management have teamed up to establish a special situations fund focused on the mining and resources sector.

The recent volatility may have excited anxiety but it is salutary to remember that such market conditions create new opportunities. Stock pickers, ever on the lookout for new ideas, find that many of their best ideas have become considerably cheaper. At the moment, there are plentiful good ideas around the world for a global fund to harvest.

Personal accounts (PAs) must support, rather than compete with or cannibalise, the existing pension provision, is the overriding message from the pensions industry to the government.

AWD Chase de Vere has joined other financial advisers in recommending clients immediately move their money away from Credit Suisse in light of an alarming series of departures from its multi-manager team.

Pension trustees should seek independent financial advice to achieve the best deal for scheme members and make informed judgements on corporate events, according to managing director of Gazelle’s pensions advisory service, Paul Thornton.

One-third of employees are putting themselves at risk of ID theft by neglecting to notify their pension provider when they move home, according to new research by Aon Consulting.

More people are waking up to the benefits of shopping around for annuities deals, data from the Association of British Insurers (ABI) has suggested.

The word ‘definitive’ is often applied to things that are anything but – take the definitive guide to spam for example.

You may often think that the world of business is filled with conniving, underhand and morally vacuous people, but fear not, for All you need to know about ethics and finance is at hand.

Consultation on whether the Pensions Regulator should merge with the Pension Protection Fund (PPF) has sparked controversy in the industry, with the director of Xafinity Consulting saying it could spell disaster for scheme funding policy and result in both bodies “taking their eyes off the ball”.

Barnett Waddingham has acquired Aon Consulting’s small self-administered scheme (SSAS) client portfolio, thereby expanding its client base and adding key senior staff.

Economists and the government are the main culprits behind the UK pensions deficit crisis, according to a group of pensions experts.

In last month’s book review on Britain’s Pensions Crisis: History and Policy, readers were asked to submit who they considered was responsible for the crisis. Here are a few of the witty replies PM received:

The recent announcement by British Gas that it is reducing gas bills by 17% is welcome news for its customers, and for the customers of other power suppliers who will hopefully follow suit. This is the first cut in prices since Spring 2000, and follows seven gas price increases since 2002.

The following companies have entered the PIPA 2007 programme. Full details with a breakdown by category will be available by the time you read this at http://www.ftbusinessevents.com/pmprovider2007/Overview.asp

The most prestigious pensions and investment industry awards are almost upon us and excitement and anticipation is reaching fever pitch among those nominated for the awards.

In a response to last month’s Bee Side, Malcolm Deering asks whether the government has any idea that the NPSS resembles a dodo more than a dead duck

Since I got involved in this online petition business I’ve become pretty interested in the whole government lobbying thing if I’m being honest. What online petition business?

Pension funds need to increase their assets over time to be truly successful, so why is this often not fully entwined with how their portfolios are structured?

As the government reviews the responses to the white paper on personal accounts, it is about time there was more help provided for employers

Personal accounts are intended for ordinary, not wealthy savers, so a lifetime limit would be fairer than an annual limit, and more true to the basic objective

Big business is turning its gears towards a greener future, and using green issues as an angle to secure new investments is becoming increasingly commonplace

Ruth Emery talks to Justin Taurog, chief operating officer for Investment Solutions, about his hopes for the future after a decade of steady success

Increased outperformance and low levels of risk make enhanced indexation look compelling, but will it ever gain the popularity it enjoys in the US?

Kim Barrett: Longevity is a big issue and the government does not seem to know what it is playing at vis-à-vis long-term planning policy. A recent example of its uncertainty was the changes announced on alternative secured pension (ASP). I have to advise clients as to the way forward, which is not easy given the current landscape.

This case study takes a look at four data exercises carried out by HS Admin for the Milk Pension Fund since becoming its administrator in 2001

Administering a defined contribution scheme is likely to involve much closer monitoring and a wider framework than defined benefit

Trustees must be able to demonstrate that their scheme is well governed, which may require greater resources and more accurate methods of measurement

Good data is essential to the smooth running of any pensions ship and is a key foundation for any trustees’ work

Risk-based techniques are the best way to establish an effective and secure fund

The value unconstrained investing offers pension funds is often underestimated

Lifestyling is a definite improvement from leaving DC members to their own devices, but now even this is becoming outmoded

The Pensions Management Institute (PMI) and the National Association of Pension Funds (NAPF) have both made new appointments to their senior tiers heralding a period of change.

The London Pensions Fund Authority (LPFA) has recruited Vanessa James to be its new investment director.

Credit Suisse continues to haemorrhage top-notch employees as Rob Burdett and Gary Potter, currently co-heads of the multi-manager (MM) team, leave to join Thames River Capital.