UK - The £2.8bn Boots pension fund has decided to switch 15% of its assets from bonds, abandoning its earlier decision of holding all its assets in bonds.
The company today said that around £425m would be invested in other asset classes.
“The pension fund remains strong, but to better match long term liabilities, the pension fund trustees have decided to switch a small proportion, around 15%, of the fund's assets into asset classes other than bonds,” Boots said in a statement.
The company said that as per the FRS17 accounting standard, the pension scheme deficit before tax was £58m, compared to £154m in 2003.
Market value of liabilities was £2,894m (£2,540m) and market value of assets was £2,836m (£2,694m) as at March 31, 2004.
The P&L cost of the pension fund is expected to increase by £40m in 2004-05 principally due to the roll-off of the amortisation of previous surpluses, and the movement in real bond yields in the three years since the last actuarial valuation.
An analysis of IGC annual reports finds some lacking in information on value for money, costs and charges, and investment performance. James Phillips explores the findings
A new cost transparency solution is being developed for pension schemes by a financial services technology firm.
Supermarket giant Asda's plans to reform its pensions have been decried as "unfair, unreasonable and unnecessary" as the workers' union began talks with the employer.
The Pensions Administration Standards Association (PASA) has launched a checklist to help trustees with the rectification process for guaranteed minimum pensions (GMP).