US - GM motors is to move 20% of its pension fund assets from stocks to bonds in an effort to protect a US$17.1bn surplus.
Global bonds will now make up 52% of investments with 29% in global equity, 8% in real estate and 11% in alternative investments.
GM chief financial officer Fritz Henderson said: “What this is intended to do is reduce the expected volatility of asset returns in the plan’s funded status, and frankly lower the probability of any future [funding] requirements.”
Returns of 15% on GM’s assets in 2006 were well ahead of general market performance and an improvement on 13% in 2005.
Return expectations have been lowered to 8.5% for 2007 as a result of the asset re-allocation.
An unnamed London-based employer has been hit with a £350,000 fine from The Pensions Regulator (TPR) for failing to fully comply with its pension duties.
XPS Pensions has enhanced its fiduciary management selection service in order to help trustees through initial selection and mandatory re-tendering.
One in five defined benefit (DB) schemes are in The Pension Regulator's (TPR) weakest two categories, analysis by Hymans Robertson has revealed.
State Street Global Advisors (SSGA) has been selected as the first index manager for the Asset Management Exchange's (AMX) passive funds.