UK - The £11bn Lattice Group Pension Scheme is to carry out a strategic asset allocation review after a valuation revealed a substantial falls in asset values.
The internet solutions firm’s pension scheme has seen its assets fall from over £13bn in 2000 to £11bn at the end of last year .
This is a cause of concern as the pension scheme’s liabilities are much bigger than the company, which has a market capitalisation of only £5.75bn, and could be affected further by the introduction of FRS17, which the company is yet to adopt.
Lattice head of group pensions Ann Harrison said: “Following on from the valuation we are doing a strategic asset allocation review with the trustees. We expect to produce the results in the next few months.”
At the end of 2000 the Lattice Group pension fund had around 55% – £7.5bn – of its assets invested in equities. This figure is thought to be high for such a mature fund, with analysts expecting the fund to move some of its equity allocation into fixed-income following the review.
The scheme has around 100,000 deferred and pensioner members, compared to only 15,000 actives.
Lattice is also poised to close its final salary scheme to new members on April 1 this year – a move that had been announced last December and follows many other companies that are trying to cut the costs of their pension scheme.
The Lattice Group Pension Scheme is advised by Watson Wyatt.
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