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.
The Department for Work and Pensions (DWP) will develop and test new ways to include 4.8 million self-employed workers in pension savings.
Opt-out rates at the end of June 2018 "remained consistent" with levels before the April contribution rate increase, according the Department for Work and Pensions (DWP).
The Pensions Regulator (TPR) has appointed Charles Counsell as its new chief executive, who will take over from Lesley Titcomb next year.
The Financial Reporting Council (FRC) should be abolished and audit and advisory businesses should be split into separate entities to improve the sector for both savers and investors, two reports published today say.