ITV reports deficit fall and sells contingent asset for £150m
ITV has reported the net deficit of its defined benefit pension scheme has fallen from £105m on 30 June to just £2m on 30 September.
The media firm's third quarter trading update said the decrease in the deficit was driven by its deficit funding contribution and an increase in asset values that more than offsetted the increase in liabilities arising from a fall in corporate bond yields.
ITV also reported it had sold the London Television Centre on the capital's South Bank to Mitsubishi Estate London in an all-cash transaction for £145.6m - a property that had been pledged as a security to a section of ITV's pension scheme.
In 2014, ITV established a pension funding partnership with the trustees of the ITV Pension Scheme, backed by The London Television Centre - a deal which resulted in the assets of section A of its scheme being increased by £50m.
As part of the sale of the property, ITV said it would use part of the proceeds to replace the asset security and use the remaining cash to reduce the company's net debt.
More on Investment
Why trustee power over ESG is limited
ESG is increasingly important for schemes but trustees have little influence over manager decisions. Pádraig Floyd asks what they can do to redress the balance.
The smaller scheme's ABC of ESG
While it may be tough for small schemes to manage their approach to ESG-related investment risks, there are ways to meet this fiduciary responsibility, says Richard Butcher
The value of an option: How schemes can use convertible bonds
Using convertible bonds could help pension fund investors to mitigate volatility while also sharing in upside during periods of growth, says Justin Craib-Cox.
Industry Voice: How do ESG concerns impact fixed income investors?
Across the globe, fixed income investors are increasingly interested in environmental, social and governance (ESG) issues. MFS Research Analyst Mahesh Jayakumar explains how MFS® incorporates ESG factors into fixed income research and looks at the opportunities and challenges facing investors.
