UK - The FRS17 accounting standard will prompt pension funds to increase their investments in non-government debt, according to Paul Grainger, manager of Gartmore's UK gilt and fixed interest fund.
To gauge the impact of FRS17, Gartmore carried out a survey of finance directors from 100 leading UK companies with over 60 responses so far. Of the sample in the survey, more than 40% of finance directors expressed concern that FRS17 would lead to greater volatility in their company’s share price.
35% of respondents are now considering an increase in their pension fund’s fixed income exposure.
Grainger noted: “This will lead to a continuation of the trend seen in recent years for pension funds to increase their investments in non-government debt.
“Sterling corporate bonds have performed well over recent periods whilst yields are attractive relative to gilts. As of mid-October the Merrill Lynch Sterling Non-Gilts Index yielded 5.78%, 1% more than the FTSE All Gilt Stocks Index.”
By Janet Du Chenne
The Pensions Regulator (TPR) and Labour MP Stephen Kinnock and will listen to the experiences of steelworkers when transferring their pensions away from the British Steel Pension Scheme (BSPS) next week in Port Talbot.
Just Group has acquired a 75% stake in the holding company of Corinthian Pension Consulting in a bid to strengthen its professional defined benefit (DB) advisory services.
The Pensions Regulator (TPR) has exercised its production order power under the Proceeds of Crime Act 2002 for the very first time as part of a fraud investigation.
The ITN Limited Pension Scheme has named Trafalgar House as its administrator for an initial term of five years.