Asset Allocation – Page 155
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Features
Moving into a new phase
The European directive of 2003 concerning the activities and the regulation of occupational pension funds was adopted following a very long and difficult process. All things considered, the impact of this directive is very limited for a country like France1. Nonetheless it is a good starting point for us to ...
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Features
Mandatory savings ruled out
Heinrich Tiemann, German deputy minister for labour and social affairs, has reaffirmed that the government has no plans to make retirement saving mandatory. Speaking at a conference, he said that the Riester pension reforms of 2001 had prompted a dramatic rise in demand for second- and third pillar pensions. He ...
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Features
Learn to love tight spreads
We live today, in a somewhat surreal world where, as Tim Bond, the author of the Barclays Capital Equity Gilt Study points out, £800bn (€1.2trn) of final salary UK pension schemes are trying to buy £41bn of long dated index-linked gilts, which he likens to an elephant trying to squeeze ...
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A hitchhiker's guide to LDI
Once the decision has been made to implement a liability driven investment (LDI) strategy to provide protection against interest and inflation rate movements, the implementation process still lies ahead. There are a multitude of different areas in the implementation process that will require simultaneous attention. It is vital for the ...
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Harrods facing pension strike
The UK’s world famous department store Harrods could be facing “damaging” strike action following its failure to undertake proper consultations on its decision to shut its final salary pension scheme, the Amicus union has warned. Amicus - representing 100 members - has accused the store of replacing the existing final ...
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Evolving the system
French retirees draw two or three pensions. The basic pension is paid by the state social security system. On top of that there is a complementary pension paid by an Arrco institution and, for managers, a management pension from Agirc. On average the basic pension represents 60% of their total ...
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New environment for pensions
Following the law on pension reform in 2003, the different regulations that we were all waiting for have finally been published. The result is a much clearer (and attractive) pension environment than before. Companies can sponsor three tax-favoured retirement systems – traditional DC and DB plans, and the new locked-in ...
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Driven to short-term views
Some 10 years ago, remembers Mn Services interim commercial director Pieter Kiveron, finance minister Gerrit Zalm was quoted as advising pension fund managers to make sure that there were four of them because then they could at least play cards. The implication was that otherwise they would have very little ...
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Positive currents in DC market
More retirement savings, easier investment choices, lower management fees. A worker’s dream? No it is not, according to recent research about new trends in US defined contribution (DC) plans. Thanks to regulatory and market pressures, in 2006 DC plans, like 401(k)s, will conquer more participants and will be more understandable. ...
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Proving FRR's credentials
Almost five years after its creation, the French Fonds de reserve des retraites (FRR) has experienced only one full real year of financial management, in 2005. Let’s remind a brief history of the FRR. France, like many others, has to face a retirement problem with its existing system being unable ...
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Features
Europe on slow crawl upward
Yield curve/duration The ECB duly raised its Refi rate to 2.5% on 2 March, a move which came as no surprise to market participants. What had more influence on the short end of the yield curve were comments from the ECB. Firstly, president Trichet said the bank was “ready to ...
