UK - Problems with the valuation of UK corporate bonds are stifling interest from institutional investors, a leading fund manager claims.
Specialist fixed income manager Pimco says there are some UK-specific issues critical to the performance of the domestic corporate bond market.
Head of UK fixed income Mike Amey says that proposed changes in the regulations of the solvency calculation for life funds is creating an uneven playing field.
He said: “They are changing so that life funds require capital provision against corporate bonds. We think that’s going to make the life funds less keen on adding further to what is already a large weighting to corporate bonds.
“We think they will protect their positions by selling their longer-dated corporate bonds in favour of shorter-dated corporates because the stress test is based upon a yield shift.”
The Pensions Regulator (TPR) has granted 11 master trusts extensions to apply for authorisation, as it confirms it has received 22 applications ahead of the 31 March deadline.
Aegon Master Trust, Fidelity Master Trust and Ensign have sent off their authorisation applications to The Pensions Regulator (TPR).
Self-administered pension funds spent £15bn on payments to pensioners in Q4 2018, but received just £12bn in contributions (net of refunds), Office for National Statistics (ONS) data reveals.
Aberdeen Standard Investments (ASI) and Gresham House are to team up to form a joint venture.