UK - Gordon Brown may have at last given UK pension funds a break by removing stamp duty on foreign exchange traded funds on the London Stock Exchange, according to Lyxor AM which launched three such funds today.
Head of Lyxor ETFs UK and Ireland, Dan Draper, told Global Pensions he thought ETFs were the fastest growing segment of asset management in what he said was quickly becoming the world’s financial capital.
He added: “When they started, ETFs were temporary vehicles to transition portfolios. Now pension funds are now really looking at ETFs as core building blocks to traditional fund management.”
Draper continued that pension funds had historically been drawn to index defined trackers, but ETFs had the added benefit of liquidity.
The funds could be used in conjunction with other vehicles, according to Draper: “To help lower the cost we’ve seen a number of pension funds looking at the benefits of using ETFs through securities lending to offset some of the fees they bring.”
Lyxor Asset Management is a wholly-owned subsidiary of Société Générale. It has launched Lyxor ETF FTSE 100, Lyxor ETF FTSE 250 and Lyxor ETF FTSE All-Share. Total expense ratios are set at 0.40% p.a.
PP has analysed the accounts of the biggest pension consulting firms and recorded the turnover (revenue) in their most recent accounts. The full leaderboard is below…
UK defined benefit (DB) schemes have increasingly undertaken benefit reviews over the last four years resulting in an acceleration of scheme closures, Aon research finds.
Contributions are no longer sufficient to meet regular payments for three-quarters of small- to medium- sized defined benefit (DB) schemes, Buck analysis finds.