Supplementary Methods of Distributing Gilts

Size: px
Start display at page:

Download "Supplementary Methods of Distributing Gilts"

Transcription

1 Supplementary Methods of Distributing Gilts The ABI s Response to the DMO s Consultation Document Introduction 1. The ABI is the voice of the insurance and investment industry. Its members constitute over 90 per cent of the insurance market in the UK and 20 per cent across the EU. They control assets equivalent to a quarter of the UK s capital. They are the risk managers of the UK s economy and society. Through the ABI their voice is heard in Government and in public debate on insurance, savings, and investment matters. General Comments 2. ABI Members are major investors in the gilts market as well as in other securities the markets for which are dependent on a well-functioning gilts market. The pensions and annuity market is large, reflecting the size of the funded pensions sector in the UK, and is likely to continue to grow over time as life expectancy in retirement increases and as developments in the pensions savings, for example through the introduction of Personal accounts. With the closure of many DB pension schemes to further accrual there is considerable activity in the deferred annuity buyout market as schemes elect to crystallise liabilities and new entrants to the pensions buy-out sector become established. This has given an added impetus to careful matching of liabilities with fixed interest investments when this was not typically the case for the entitlements of scheme members pre-retirement. However, regulatory pressures across the board continue to encourage relatively close matching of liabilities. 3. The liabilities of the pensions and annuity sector are typically of long duration and becoming longer. A proportion of these liabilities are index-linked as regards inflation and hence the functioning of the index-linked gilts market is of definite relevance to our Members as well as the market for conventional gilts of longer durations. The continued inversion of the yield curve at the long end is a disincentive to investors to acquire gilts. The interests of the investing institutions, of the underlying beneficiaries, and of the Government would seemed to be aligned in securing a better overall balance of supply and demand at the long end of the yield curve and in the index-linked markets. Our Members would welcome a commitment by the Authorities to address this while ensuring appropriate transparency to the market and thus promotion of market confidence and integrity. A better balance of supply and demand would also be likely to deliver the greater liquidity in the market that in turn would help the issuance market.

2 4. We would take the opportunity to point out the importance of the Government not adopting a narrow perspective in considering its long-dated liability pattern. There is sense in the Government helping the insurance sector to provide the type of products that will enable private sector solutions that have the potential to reduce the quantum of liabilities that would otherwise ultimately fall on the State. The availability of appropriate matching assets is crucial to the insurance industry s ability to provide practical assistance in this regard. 5. Institutional investors in the gilts market have been supportive of the efforts over recent years to ensure a healthy and transparent market and of the issuance procedures, predominantly through auctions, that have been adopted. They are, however, keenly aware of the dangers posed by the current difficulties in the financial system and the effect this may have on commitment by banks to make sufficient capital available to support risk-taking by the Gilt-Edged Market Makers that is necessary for the market as currently organised to operate on an efficient basis. It is unlikely that the investment flows of institutions can be made to accord with the timing of gilt auctions and hence direct participation in these by investors for the purpose of acquiring a large proportion of the securities they require is likely to pose significant market risk for them. Rather, our members believe it is the ability of GEMMs to participate actively in the gilt auction process based on their expectations of end-investor demand over the shorter term that is critical to making the auction system work effectively. 6. This consultation document is therefore timely and we welcome the opportunity to respond to it. We consider that at least some of the options for additional distribution should be pursued. There is a need for supplementary availability of gilts between the dates of auctions. It may be that this can best be achieved through the DMO itself to be open for direct business on a daily basis with some or all of the benchmark gilts up for auction. 2

3 Questions for Consultation ANNEX (a) Interaction between the pension sector and gilt issuance 1. Do pension sector respondents perceive that there are difficulties with acquiring gilts that arise as a result of the auction process? No. However, there is some support for the idea of single-price auctions for conventional gilts as for index-linked. 2. If so, what aspects of the auction process cause these difficulties and what do pension sector respondents view as the appropriate solutions which would facilitate their participation at auctions? This is a question on which the GEMMs are perhaps best placed to take a view. 3. Do pension sector respondents believe that a supplementary gilt distribution method or methods would more effectively meet their demand for gilts? If so, is there a particular supplementary gilt distribution method that would most effectively address the concerns of the pension sector? Yes, supplementary methods might help. (b) Potential advantages/disadvantages of introducing supplementary gilt distribution methods into the DMO s financing remit 4. Do respondents see merit in the Government introducing any supplementary gilt distribution methods for use as appropriate taking into account the quantum of financing to be raised in any year? On the whole we would like to see consistency of approach rather than tactical decisions being taken from year to year according to the size of issuance to be undertaken. 5. What do respondents regard as the potential draw-backs (if any) for the Government and for gilt investors of introducing a supplementary distribution method or methods? There should be none provided this is undertaken as part of a transparent system. (c) Preference between distribution methods 6. Do respondents have a preference for any particular supplementary gilt distribution method over other alternatives? We consider that a system of direct daily auctions should specifically be considered. 3

4 7. For any distribution method preferred by respondents, what do they see as the benefits both for the gilt market and for the Government as issuer of gilts? We suggest that direct daily auctions should, in providing the main users of the gilts market a facility that would be valued by them, reduce risk in the system, uncertainty to investors and to GEMMS, and thus be likely to reduce issuance costs to Government. 8. If respondents have a preference for a particular supplementary distribution method how do they see that method being implemented in practice? We think the details should be consulted on with market participants. (d) Potential size of gilt issuance using supplementary distribution methods 9. What range of issuance sizes (relative to equivalent auctions) could take place via a supplementary distribution method in a way that would be successful for both the market and the Government as issuer? We think such issuance should account for a minority portion of total issuance with the quantity of stock distributed by auction at the long end of the maturity spectrum being held at roughly the same level as now. 10. Would a supplementary distribution method be more likely to allow successful issuance in large size (relative to auctions of equivalent maturity/type)? On balance we see the supplementary distribution methods being better suited to smaller issuance with the larger being better dealt with through the auction system. (e) Range of instruments capable of successful issuance via supplementary distribution methods 11. Do respondents have views on which types of gilts/maturities it would be most appropriate to issue via supplementary distribution methods (e.g. should usage of supplementary distribution methods be limited to issuance of long-dated conventional and/or index-linked gilts)? Long-dated and index-linked stocks should be the priority though we see no particular objection to extending supplementary methods across the maturity spectrum. 12. Should usage of supplementary distribution methods be limited to new issuance rather than re-openings of existing gilts? No, we do not think it need be limited to new issues. 4

5 (f) Appropriate degree of pre-commitment by the Government 13. Do respondents have views on the extent to which the Government would need to pre-announce specific operations/a programme of issuance using a supplementary distribution method or methods? The broad parameters of any bespoke operations would need to be preannounced but there is sense in preserving a degree of flexibility to respond to emerging market preferences. (g) Timing and frequency of usage 14. How frequently do respondents consider that a supplementary distribution method could be used (bearing in mind auctions remain the preferred means for issuance)? We have suggested that daily operations be considered. In any event, we consider that reducing the gaps between issuance windows and agree that periodic structured auctions should remain the priority. 15. The Government will continue to publish an annual auction calendar in the DMO s remit. How should supplementary operations be included in the gilt auction calendar (if at all)? This will depend on the methods chosen. (h) Scheduling of operations 16. How much flexibility should the DMO have around the scheduling of operations using supplementary distribution methods? Some flexibility would be sensible. However, a regular pre-determined pattern would avoid difficulties here. 17. Does the appropriate degree of scheduling flexibility depend on the type of supplementary distribution method used? If so, respondents are invited to comment on this point for different types of supplementary operation. We have no specific comment to make. (i) Lead time for implementation 18. What would be the lead times that primary dealers and gilt investors would need before issuance via a supplementary distribution method took place within ? We do not see any need for delay. 5

6 (j) Mini-tenders 19. If respondents have a preference for the establishment of mini-tenders for ongoing use in the DMO s remit, what do they see as the key benefits? They have the potential to allow the DMO respond efficiently to pockets of demand along the yield curve without having a significant impact on the risk profile of the market and indices. 20. Do respondents see any improvements that could be made to the approach the DMO has used to mini-tenders during and, if so, what improvements would respondents recommend? A somewhat greater formality as to parameters such as size, lead-time from announcement to auction would be helpful and appropriate if mini-tenders are to have an on-going role. 21. If respondents think that use of mini-tenders as a financing operation should be discontinued, what are their reasons? We have not heard any arguments being advanced within our membership for discontinuing these. 30/01/09 [m:\inv\mmck\response\dmosmdgde08 6

Principles and Trade-Offs when Making Issuance Choices in the UK

Principles and Trade-Offs when Making Issuance Choices in the UK Please cite this paper as: OECD (2011), Principles and Trade-Offs when Making Issuance Choices in the UK, OECD Working Papers on Sovereign Borrowing and Public Debt Management, No. 2, OECD Publishing.

More information

The Development of Alternative Trading Systems in the U.K. Gilts Market: Lessons and Implications*

The Development of Alternative Trading Systems in the U.K. Gilts Market: Lessons and Implications* The Development of Alternative Trading Systems in the U.K. Gilts Market: Lessons and Implications* Allison Holland Introduction The use of electronic trading mechanisms has become increasingly widespread

More information

UK DMO Consultation on issuance of ultra-long gilt instruments

UK DMO Consultation on issuance of ultra-long gilt instruments UK DMO Consultation on issuance of ultra-long gilt instruments Arnaud Marès 18 February 2005 First international conference on longevity risk and capital market solutions Launch of the UK DMO consultation

More information

Debt and reserves management report 2014-15

Debt and reserves management report 2014-15 Debt and reserves management report 2014-15 March 2014 Debt and reserves management report 2014-15 March 2014 Crown copyright 2014 You may re-use this information (excluding logos) free of charge in any

More information

Debt and reserves management report 2011-12

Debt and reserves management report 2011-12 Debt and reserves management report 2011-12 March 2011 Debt and reserves management report 2011-12 March 2011 Printed on paper containing 75% recycled fibre content minimum. If using an electronic version

More information

Options for improving the Retail Prices Index

Options for improving the Retail Prices Index Options for improving the Retail Prices Index The ABI s Response to the National Statistician s consultation The UK Insurance Industry The UK insurance industry is the third largest in the world and the

More information

UK Debt Management Office CPI linked Gilts: A Consultation Document

UK Debt Management Office CPI linked Gilts: A Consultation Document UK Debt Management Office CPI linked Gilts: A Consultation Document NAPF Response September 2011 www.napf.co.uk 2 NAPF Response UK Debt Management Office: CPI linked Gilts: A Consultation Document NAPF

More information

BANK OF ENGLAND CONSOLIDATED MARKET NOTICE: STERLING MONETARY FRAMEWORK; ASSET PURCHASES

BANK OF ENGLAND CONSOLIDATED MARKET NOTICE: STERLING MONETARY FRAMEWORK; ASSET PURCHASES BANK OF ENGLAND CONSOLIDATED MARKET NOTICE: STERLING MONETARY FRAMEWORK; ASSET PURCHASES 1 This Market Notice sets out the arrangements that apply to the purchases of assets with central bank reserves

More information

MERCHANT NAVY OFFICERS PENSION FUND STATEMENT OF INVESTMENT PRINCIPLES

MERCHANT NAVY OFFICERS PENSION FUND STATEMENT OF INVESTMENT PRINCIPLES MERCHANT NAVY OFFICERS PENSION FUND STATEMENT OF INVESTMENT PRINCIPLES Introduction The main purpose of the MNOPF is the provision of pensions for Officers in the British Merchant Navy on retirement at

More information

UNITED KINGDOM DEBT MANAGEMENT OFFICE

UNITED KINGDOM DEBT MANAGEMENT OFFICE United Kingdom Debt Management Office UNITED KINGDOM DEBT MANAGEMENT OFFICE CPI-linked Gilts: Response to Consultation 29 November 2011 1 UK DEBT MANAGEMENT OFFICE CPI-linked Gilts: Response to Consultation

More information

4 Further details of the responses received are presented below.

4 Further details of the responses received are presented below. REPORT ON BOND EXCHANGES AND DEBT BUY-BACKS A SURVEY OF PRACTICE BY EC DEBT MANAGERS In June 2001 a questionnaire covering the practices followed by debt managers implementing bond exchange or buy-back

More information

Review of Annuity Market

Review of Annuity Market Review of Annuity Market Submission by the Society of Actuaries in Ireland February 2007 Introduction The Society of Actuaries in Ireland welcomes the opportunity to make this submission in relation to

More information

TM1: Statutory Illustrations of Money Purchase Benefits

TM1: Statutory Illustrations of Money Purchase Benefits TM1: Statutory Illustrations of Money Purchase Benefits The ABI s Response to the Board for Actuarial Standards Consultation Paper, March 2010 The ABI is the voice of the insurance and investment industry.

More information

A CONSULTATION ON DEVELOPING THE BANKING AND FINANCIAL SERVICES AVAILABLE AT THE POST OFFICE

A CONSULTATION ON DEVELOPING THE BANKING AND FINANCIAL SERVICES AVAILABLE AT THE POST OFFICE A CONSULTATION ON DEVELOPING THE BANKING AND FINANCIAL SERVICES AVAILABLE AT THE POST OFFICE The ABI s response to the Post Office Banking Consultation Introduction 1. The ABI is the voice of the insurance

More information

Fixed income benchmarks Time to think again?

Fixed income benchmarks Time to think again? February 2013 Fixed income benchmarks Time to think again? There are a number of drawbacks to the use of traditional fixed income benchmarks. As a consequence, some fixed income managers are reappraising

More information

IMPLEMENTING THE RESTRICTION OF PENSIONS TAX RELIEF: NAPF SUBMISSION TO THE HMT/HMRC CONSULTATION

IMPLEMENTING THE RESTRICTION OF PENSIONS TAX RELIEF: NAPF SUBMISSION TO THE HMT/HMRC CONSULTATION IMPLEMENTING THE RESTRICTION OF PENSIONS TAX RELIEF: NAPF SUBMISSION TO THE HMT/HMRC CONSULTATION Executive Summary The NAPF welcomes the Coalition Government s decision to adopt a tax regime based principally

More information

United Kingdom Debt Management Office. UK Government Securities: a Guide to Gilts Eighth edition June 2010

United Kingdom Debt Management Office. UK Government Securities: a Guide to Gilts Eighth edition June 2010 United Kingdom Debt Management Office UK Government Securities: a Guide to Gilts Eighth edition June 2010 UK Government Securities: a Guide to Gilts United Kingdom Debt Management Office Eastcheap Court

More information

Universities Superannuation Scheme 2014 Actuarial Valuation

Universities Superannuation Scheme 2014 Actuarial Valuation Universities Superannuation Scheme 2014 Actuarial Valuation A consultation on the proposed assumptions for the scheme s technical provisions and recovery plan October 2014 Contents Introduction 3 Background

More information

Impact Assessment (IA)

Impact Assessment (IA) Title: Amendments to Pension Schemes Bill (private sector defined benefit transfers) IA No: RPC14-HMT-2212 Lead department or agency: HM Treasury Other departments or agencies: Department for Work and

More information

Group Income Protection Technical Guide

Group Income Protection Technical Guide For commercial customers and their advisers only Group Income Protection Technical Guide Reference BGR/4019/OCT12 Contents Page Its aims Employers your commitment Risk factors How does the policy work?

More information

APFA RESPONSE TO THE HMT AND DWP CONSULTATION CREATING A SECONDARY ANNUITY MARKET

APFA RESPONSE TO THE HMT AND DWP CONSULTATION CREATING A SECONDARY ANNUITY MARKET APFA RESPONSE TO THE HMT AND DWP CONSULTATION CREATING A SECONDARY ANNUITY MARKET ABOUT APFA The Association of Professional Financial Advisers (APFA) is the representative body for the financial adviser

More information

Creating a Secondary Annuity Market: a response by the National Association of Pension Funds

Creating a Secondary Annuity Market: a response by the National Association of Pension Funds Creating a Secondary Annuity Market: a response by the National Association of Pension Funds June 2015 www.napf.co.uk Creating a secondary annuity market: a response by the NAPF Contents Executive Summary

More information

(ons) Response to consultation on insurance companies' recording of pensions transactions

(ons) Response to consultation on insurance companies' recording of pensions transactions (ons) Response to consultation on insurance companies' recording of pensions transactions Introduction In January 2004 ONS published a consultation note on insurance companies' recording of pensions transactions,

More information

For the Trustees of Defined Benefit Pension Schemes and their Investment Consultants Only.

For the Trustees of Defined Benefit Pension Schemes and their Investment Consultants Only. LGIM SOLUTIONS LEGAL & GENERAL INVESTMENT MANAGEMENT Buy-Out Aware. For the Trustees of Defined Benefit Pension Schemes and their Investment Consultants Only. Preparing for the endgame: a fund range specifically

More information

Debt and reserves management report 2005-06. March 2005

Debt and reserves management report 2005-06. March 2005 Debt and reserves management report 2005-06 March 2005 Debt and reserves management report 2005-06 March 2005 Crown copyright 2005 Published with the permission of HM Treasury on behalf of the Controller

More information

Can DC members afford to ignore inflation?

Can DC members afford to ignore inflation? May 2013 Can DC members afford to ignore inflation? Mark Humphreys, Head of UK Strategic Solutions, Schroders Introduction Around 95% of individuals are forgoing inflation protection for their retirement

More information

JOHN RALFE CONSULTING

JOHN RALFE CONSULTING Mr Andrew Lennard Accounting Standards Board Aldwych House 71-91 Aldwych London WC2B 4HN July 14th 2008 Dear Andrew Discussion Paper The Financial Reporting of Pensions January 2008 As you know I was a

More information

PPF 7800 Index. End-December 2008

PPF 7800 Index. End-December 2008 PPF 7800 Index End-December 2008 This update provides the latest estimated funding position, on a s179 basis, of almost 7,800 predominantly private sector defined benefit (DB) pension schemes in the UK.

More information

INFORMATION NOTE. The development of government bond market in Singapore

INFORMATION NOTE. The development of government bond market in Singapore INFORMATION NOTE The development of government bond market in Singapore 1. Background 1.1 Announced in the 2009-2010 budget speech by the Financial Secretary, the Government intends to implement a programme

More information

Investment Association response to the FCA s Retirement income market study: Interim Report

Investment Association response to the FCA s Retirement income market study: Interim Report Investment Association response to the FCA s Retirement income market study: Interim Report 30 th January 2015 General comments 1. The Investment Association 1 is a long-standing supporter of greater flexibility

More information

Annuitization lessons from the UK

Annuitization lessons from the UK IMF Seminar on Ageing, Financial Risk Management and Financial Stability The views expressed in this paper are those of the author(s) only, and the presence of them, or of links to them, on the IMF website

More information

Liability Management. DRAFT Background Note March 2010

Liability Management. DRAFT Background Note March 2010 Liability Management DRAFT Background Note March 2010 LIABILITY MANAGEMENT BACKGROUND NOTE 1 This note on liability management is part of a series of background notes produced under the Gemloc Advisory

More information

Spotlight Quiz on Inflation, Index-Linking and Compounding

Spotlight Quiz on Inflation, Index-Linking and Compounding Spotlight Quiz on Inflation, Index-Linking and Compounding Frequency of payment A major UK bank has recently written to its customers along the following lines: Through talking to customers we have found

More information

ACCOUNTING STANDARDS BOARD NOVEMBER 2000 FRS 17 STANDARD FINANCIAL REPORTING ACCOUNTING STANDARDS BOARD

ACCOUNTING STANDARDS BOARD NOVEMBER 2000 FRS 17 STANDARD FINANCIAL REPORTING ACCOUNTING STANDARDS BOARD ACCOUNTING STANDARDS BOARD NOVEMBER 2000 FRS 17 17 RETIREMENT BENEFITS FINANCIAL REPORTING STANDARD ACCOUNTING STANDARDS BOARD Financial Reporting Standard 17 Retirement Benefits is issued by the Accounting

More information

Directors remuneration

Directors remuneration Briefing A review of the Government s June 2012 proposals for a binding shareholder vote on directors pay and new pay disclosures Summary This briefing looks at the detailed proposals for the new regime

More information

STRIP BONDS AND STRIP BOND PACKAGES INFORMATION STATEMENT

STRIP BONDS AND STRIP BOND PACKAGES INFORMATION STATEMENT STRIP BONDS AND STRIP BOND PACKAGES INFORMATION STATEMENT We are required by provincial securities regulations to provide you with this Information Statement before you can trade in strip bonds or strip

More information

DB run-off. The demand for inflation-linked assets

DB run-off. The demand for inflation-linked assets DB run-off The demand for inflation-linked assets Contents Executive Summary... 1 The roots of the DB run-off... 3 Asset allocation trends... 6 Changes in asset allocation as the number of pensioner members

More information

Infrastructure Australia. Submission to the Financial System Inquiry

Infrastructure Australia. Submission to the Financial System Inquiry Infrastructure Australia Submission to the Financial System Inquiry August 2014 Contents 1. Introduction... 1 2. Impediments to the development of a liquid infrastructure bond market.. 2 Supply side factors

More information

Scheme funding statistics

Scheme funding statistics May 2014 Scheme funding statistics Valuations and recovery plans of UK defined benefit and hybrid pension schemes Contents Overview 3 Tranche 7 3 Market conditions 3 Funding 4 Discount rates 5 Life expectancies

More information

Spotlight on defined contribution pension schemes

Spotlight on defined contribution pension schemes OFT report The Pensions Regulator s Code of Practice The OCERP Spotlight on defined contribution pension schemes The OFT is empowered to conduct investigations into the workings of markets in the UK. The

More information

GW Contracted-out Money Purchase Scheme ( the Scheme ) Statement of Investment Principles

GW Contracted-out Money Purchase Scheme ( the Scheme ) Statement of Investment Principles GW Contracted-out Money Purchase Scheme ( the Scheme ) Statement of Principles This Statement of Principles (SIP) covers the defined contribution section of the Scheme. It is set out in three parts: 1)

More information

Pensions Reform and Capital Markets A UK Perspective

Pensions Reform and Capital Markets A UK Perspective Pensions Reform and Capital Markets A UK Perspective Adair Turner Capital Matters Conference 26 th April, 2006 Rate of return in PAYG system Retirement Income Working Life Contributions Function of % of

More information

Investment Implications for UK DC Schemes in Light of Tax and Regulatory Changes

Investment Implications for UK DC Schemes in Light of Tax and Regulatory Changes Investment Implications for UK DC Schemes in Light of Tax and Regulatory Changes November 19, 2014 by William Allport of PIMCO With greater flexibility and choices available to DC savers in the latter

More information

The self-employed and pensions

The self-employed and pensions BRIEFING The self-employed and pensions Conor D Arcy May 2015 resolutionfoundation.org info@resolutionfoundation.org +44 (0)203 372 2960 The self-employed and pensions 2 The UK s self-employed populace

More information

A guide to the roles of the DMO and Primary Dealers in the UK Government bond market

A guide to the roles of the DMO and Primary Dealers in the UK Government bond market United Kingdom Debt Management Office Eastcheap Court 11 Philpot Lane LONDON EC3M 8UD A guide to the roles of the DMO and Primary Dealers in the UK Government bond market Issued by the UK Debt Management

More information

Delayed Pension Payment Bulk Purchase Annuity

Delayed Pension Payment Bulk Purchase Annuity Delayed Pension Payment Bulk Purchase Annuity For employee benefit consultants, pension professionals and financial advisers only. Not approved for use with pension scheme members. Contents Delayed Pension

More information

Certificate for Introduction to Securities & Investment (Cert.ISI) Unit 1

Certificate for Introduction to Securities & Investment (Cert.ISI) Unit 1 14cis Certificate for Introduction to Securities & Investment (Cert.ISI) Unit 1 Lesson 14: Pension funds Insurance companies Who buys government bonds? Government bonds are bought in large quantities by

More information

Police Pension Scheme Road Map to Retirement. www.policemoneymatters.com

Police Pension Scheme Road Map to Retirement. www.policemoneymatters.com Police Pension Scheme Road Map to Retirement Click below to register your place at a PMM Retirement Seminar in your location www.policemoneymatters.com Copyright: Police Money Matters 2012. Contents 3

More information

Guidelines for public debt management

Guidelines for public debt management 2016 Guidelines for public debt management 2016 Public Debt Management Guidelines Contents FOREWORD... 3 2016 ISSUANCE PROGRAMME AND DEBT MANAGEMENT... 4 Preliminary considerations... 4 ISSUANCE PROGRAMME

More information

How to calculate cash flows on index-linked gilts

How to calculate cash flows on index-linked gilts How to calculate cash flows on index-linked gilts Index-linked gilts pay semi-annual cash flows indexed to the Retail Prices Index (RPI). In practical terms this means that both the coupons and the principal

More information

Public Debt and Cash Management

Public Debt and Cash Management Federation of European Accountants Federation of European Accountants Fédération Fédération des Experts des Experts comptables comptables Européens Européens Public Sector Public Debt and Cash Management

More information

Alternative Asset Classes for Pension Funds

Alternative Asset Classes for Pension Funds International Finance Corporation and National Pension Commission of Nigeria Alternative Asset Classes for Pension Funds Impediments to Corporate Bond Development in Nigeria Patricia M c Kean & David White

More information

The General Dental Council 1970 Pension and Life Assurance Plan Statement of Investment Principles July 2011

The General Dental Council 1970 Pension and Life Assurance Plan Statement of Investment Principles July 2011 1 Introduction 1.1 The Scheme The General Dental Council 1970 Pension and Life Assurance Plan Statement of Investment Principles July 2011 The Plan has two sections - a Final Salary section and a Defined

More information

Your investment options University of Reading Pension Scheme

Your investment options University of Reading Pension Scheme Human Resources Your investment options University of Reading Pension Scheme Introduction If you are a member of the University of Reading Pension Scheme (the Scheme) you and your employer pay contributions

More information

For BP UK employees. Pension plan investment guide. Pensions Investments Protection

For BP UK employees. Pension plan investment guide. Pensions Investments Protection For BP UK employees Pension plan investment guide Pensions Investments Protection This guide is for current members of the Defined Contribution 2010 Pension Plan and BP UK employees who are considering

More information

Audit Committee. Directors Report. Gary Hughes Chairman, Audit Committee. Gary Hughes Chairman, Audit Committee

Audit Committee. Directors Report. Gary Hughes Chairman, Audit Committee. Gary Hughes Chairman, Audit Committee Audit Committee Dear Shareholder, We are satisfied that the business has maintained robust risk management and internal controls, supported by strong overall governance processes, and that management have

More information

Basic Guide to Retirement Income Options

Basic Guide to Retirement Income Options Basic Guide to Retirement Income Options Can I afford to retire? Which retirement income solution is best for me? Should I take all my tax-free cash entitlement? Will my family benefit from my pension

More information

http://www.pensionprotectionfund.org.uk/documentlibrary/documents/ppf_7800_u nderlying_data.pdf

http://www.pensionprotectionfund.org.uk/documentlibrary/documents/ppf_7800_u nderlying_data.pdf PPF 7800 Index 31 March 2015 This update provides the latest estimated funding position, on a section 179 (s179) basis, for the defined benefit schemes potentially eligible for entry to the Pension Protection

More information

Discussion note on insurance companies' recording of pensions transactions

Discussion note on insurance companies' recording of pensions transactions Discussion note on insurance companies' recording of pensions transactions Introduction This note sets out a number of issues about the way insurance companies record pensions transactions, on which ONS

More information

Recovery plans. Assumptions and triggers

Recovery plans. Assumptions and triggers Recovery plans Assumptions and triggers Preface This is an update to The Pensions Regulator s analysis of recovery plans which focuses on the technical assumptions, underlying funding targets and statistics

More information

Finansinspektionen s Regulatory Code

Finansinspektionen s Regulatory Code Finansinspektionen s Regulatory Code Publisher: Finansinspektionen, Sweden, www.fi.se ISSN 1102-7460 This translation is furnished for information purposes only and is not itself a legal document. Finansinspektionen's

More information

Trading in Treasury Bond Futures Contracts and Bonds in Australia

Trading in Treasury Bond Futures Contracts and Bonds in Australia Trading in Treasury Bond Futures Contracts and Bonds in Australia Belinda Cheung* Treasury bond futures are a key financial product in Australia, with turnover in Treasury bond futures contracts significantly

More information

THE DEVELOPMENT OF ALTERNATIVE TRADING SYSTEMS IN THE UK GILT MARKET: LESSONS AND IMPLICATIONS

THE DEVELOPMENT OF ALTERNATIVE TRADING SYSTEMS IN THE UK GILT MARKET: LESSONS AND IMPLICATIONS THE DEVELOPMENT OF ALTERNATIVE TRADING SYSTEMS IN THE UK GILT MARKET: LESSONS AND IMPLICATIONS ALLISON HOLLAND UK DEBT MANAGEMENT OFFICE A PAPER PREPARED FOR THE FINANCIAL MARKET STRUCTURE AND DYNAMICS

More information

QE s impact on pension fund liabilities. Mark Gull, Co-Head of ALM Pension Corporation December 2011

QE s impact on pension fund liabilities. Mark Gull, Co-Head of ALM Pension Corporation December 2011 QE s impact on pension fund liabilities Mark Gull, Co-Head of ALM Pension Corporation December 2011 Summary Pension Corporation has previously estimated that QE1 increased UK pension fund deficits by 74

More information

UK DEBT MANAGEMENT OFFICE. DMO Policy Regarding Special Gilt Repo Operations

UK DEBT MANAGEMENT OFFICE. DMO Policy Regarding Special Gilt Repo Operations UK DEBT MANAGEMENT OFFICE DMO Policy Regarding Special Gilt Repo Operations Introduction The DMO s Debt Management 1999-2000 Remit from the HM Treasury states that: For the purposes of market management,

More information

United Kingdom Debt Management Office GEMM GUIDEBOOK. A guide to the roles of the DMO and Primary Dealers in the UK government bond market

United Kingdom Debt Management Office GEMM GUIDEBOOK. A guide to the roles of the DMO and Primary Dealers in the UK government bond market United Kingdom Debt Management Office GEMM GUIDEBOOK A guide to the roles of the DMO and Primary Dealers in the UK government bond market August 2011 CONTENTS Executive Summary wholesale GEMM criteria,

More information

Swaps made simple. What a trustee needs to know

Swaps made simple. What a trustee needs to know What a trustee needs to know February 2005 The NAPF is grateful to the following for their considerable contribution to the preparation of this guide: AXA Investment Managers PSolve Asset Solutions Thanks

More information

Regulatory guidance DB to DC transfers and conversions

Regulatory guidance DB to DC transfers and conversions Regulatory guidance DB to DC transfers and conversions April 2015 About this guidance 1. This guidance is aimed primarily at addressing statutory transfers of DB benefits made in accordance with Part 4ZA

More information

Standardising the Longevity Market Have we arrived yet? An update on the work of the LLMA

Standardising the Longevity Market Have we arrived yet? An update on the work of the LLMA Standardising the Longevity Market Have we arrived yet? An update on the work of the LLMA 19 February 2013 Benoit Moreau AXA Pretty Sagoo Deutsche Bank Agenda Introduction Longevity What s at stake? The

More information

SmithKline Beecham Senior Executive Pension Plan ( the Plan ) Statement of Investment Principles

SmithKline Beecham Senior Executive Pension Plan ( the Plan ) Statement of Investment Principles SmithKline Beecham Senior Executive Pension Plan ( the Plan ) Statement of Principles This Statement of Principles (SIP) is set out in three parts: 1) Governance arrangements 2) Objectives and implementation

More information

Buying a pension annuity

Buying a pension annuity Buying a pension annuity Why do I need to think about buying a pension annuity? When you come to retire, you will have some important decisions to make. Probably most important of all is how you will generate

More information

Fiscal Responsibility in the UK

Fiscal Responsibility in the UK Fiscal Responsibility in the UK Stephen Nickell Nuffield College, Oxford Member of the UK Budget Responsibility Committee Credibility If the credibility of a government s fiscal plans is weak, interest

More information

Mr Duisenberg discusses the role of capital markets and financing in the euro area Speech by Willem F Duisenberg, President of the European Central

Mr Duisenberg discusses the role of capital markets and financing in the euro area Speech by Willem F Duisenberg, President of the European Central Mr Duisenberg discusses the role of capital markets and financing in the euro area Speech by Willem F Duisenberg, President of the European Central Bank, at the Waarborgfonds Sociale Woningbouw in Utrecht,

More information

How should I invest my Pension/Investment money? Thank you to AXA Wealth for their contribution to this guide.

How should I invest my Pension/Investment money? Thank you to AXA Wealth for their contribution to this guide. How should I invest my Pension/Investment money? Thank you to AXA Wealth for their contribution to this guide. www.increaseyourpension.co.uk Welcome to making investing simple Investing doesn t have to

More information

Important Information about Closed-End Funds and Unit Investment Trusts

Important Information about Closed-End Funds and Unit Investment Trusts Robert W. Baird & Co. Incorporated Important Information about Closed-End Funds and Unit Investment Trusts Baird has prepared this document to help you understand the characteristics and risks associated

More information

Version 1.1 February 2015 GROUND RULES FOR THE. FTSE UK Level Annuity Index Series

Version 1.1 February 2015 GROUND RULES FOR THE. FTSE UK Level Annuity Index Series GROUND RULES FOR THE FTSE UK Level Annuity Index Series TABLE OF CONTENTS SECTION 1.0 Introduction 2.0 Management Responsibilities 3.0 Index Construction 4.0 Periodic Review 5.0 Index Calculation Methodology

More information

Issued for the month of August, 2012. Institute of Capital Markets. ICM Newsletter. Message from the Chief Executive

Issued for the month of August, 2012. Institute of Capital Markets. ICM Newsletter. Message from the Chief Executive Institute of Capital Markets ICM Newsletter Message from the Chief Executive Inside this issue: Regulatory Updates 2 Article of the Month 3 Investor Terms of the Month ICM Updates 6 5 The last few years

More information

Q1 QUARTERLY GUIDE PENSIONS ACCOUNTING

Q1 QUARTERLY GUIDE PENSIONS ACCOUNTING Q1 QUARTERLY GUIDE PENSIONS ACCOUNTING As at 31 March 2015 Guidance for Finance Directors In association with 1 QUARTERLY GUIDE TO IAS 19 ASSUMPTIONS REPORT MARCH 2015 QUARTERLY GUIDE TO PENSIONS ACCOUNTING

More information

Report on Pension Charges in Ireland 2012

Report on Pension Charges in Ireland 2012 Report on Pension Charges in Ireland 2012 Table of Contents Executive Summary... 1 Preface... 21 Chapter 1 The Irish Pensions Landscape... 23 Chapter 2 Explaining Pension Charges... 31 Chapter 3 Research

More information

PENSION INVESTMENT APPROACHES GUIDE. More detailed information

PENSION INVESTMENT APPROACHES GUIDE. More detailed information PENSION INVESTMENT APPROACHES GUIDE More detailed information OUR COMMITMENT TO YOU We want to do everything we can to help you achieve what you need from your plan. Aiming for investment growth is vital,

More information

GSK Pension Scheme ( the Scheme ) Statement of Investment Principles

GSK Pension Scheme ( the Scheme ) Statement of Investment Principles GSK Pension Scheme ( the Scheme ) Statement of Investment Principles This Statement of Investment Principles (SIP) covers the defined benefit and the defined contribution sections of the Scheme. It is

More information

Your Investment Options

Your Investment Options Your Investment Options lackrock EDS Investment uyout Plan A choice of funds to help you meet your retirement goals This guide shows you the range of investment options available through the lackrock EDS

More information

ABI Sector Definitions

ABI Sector Definitions ABI Sector Definitions March 2015 1 Definitions for funds in the ABI Sectors Unit-linked life and pension funds are split into a total of 34 ABI Sectors. Funds in the same sector can be compared on a

More information

TRADING BONDS ON THE LONDON STOCK EXCHANGE A GUIDE FOR PRIVATE INVESTORS. The new electronic order book for retail bonds

TRADING BONDS ON THE LONDON STOCK EXCHANGE A GUIDE FOR PRIVATE INVESTORS. The new electronic order book for retail bonds TRADING BONDS ON THE LONDON STOCK EXCHANGE A GUIDE FOR PRIVATE INVESTORS The new electronic order book for retail bonds Contents Introduction 3 What are bonds? 3 Bond basics 4 Types of bond issuer 5 Bond

More information

Canadian Securities Administrators Consultation Paper 91-401 on Over-the- Counter Derivatives Regulation in Canada

Canadian Securities Administrators Consultation Paper 91-401 on Over-the- Counter Derivatives Regulation in Canada January 11, 2011 John Stevenson, Secretary Ontario Securities Commission 20 Queen Street West Suite 1900, Box 55 Toronto, Ontario M5H 3S8 Me Anne-Marie Beaudoin Secrétaire de l Autorité Autorité des marches

More information

Distribution of the national debt at end-march 1975

Distribution of the national debt at end-march 1975 Distribution of the national debt at endmarch 1975 This article continues the annual series which was begun in June 1962. A short final section describes the pattern of the central government's receipts

More information

Close Brothers Self Directed Service Key Features and Charges

Close Brothers Self Directed Service Key Features and Charges Close Brothers Self Directed Service Key Features and Charges Contents 1) Key Features of the Close Stocks & Shares ISA and Close Cash ISA 2) Key Features of the Close Investment Account 3) Key Features

More information

THE COMBINED CODE PRINCIPLES OF GOOD GOVERNANCE AND CODE OF BEST PRACTICE

THE COMBINED CODE PRINCIPLES OF GOOD GOVERNANCE AND CODE OF BEST PRACTICE THE COMBINED CODE PRINCIPLES OF GOOD GOVERNANCE AND CODE OF BEST PRACTICE Derived by the Committee on Corporate Governance from the Committee s Final Report and from the Cadbury and Greenbury Reports.

More information

A Guide to Morrisons Retirement Saver Plan AVC Scheme Fund Options. Key Features Appendix for the Group Additional Voluntary Contributions Plan

A Guide to Morrisons Retirement Saver Plan AVC Scheme Fund Options. Key Features Appendix for the Group Additional Voluntary Contributions Plan A Guide to Morrisons Retirement Saver Plan AVC Scheme Fund Options Key Features Appendix for the Group Additional Voluntary Contributions Plan A Guide to Morrisons Retirement Saver Plan AVC Scheme Fund

More information

Call for evidence on the impact of MiFID on secondary market functioning

Call for evidence on the impact of MiFID on secondary market functioning Call for evidence on the impact of MiFID on secondary market functioning The ABI s Response to CESR 08-872 The ABI is the voice of the insurance and investment industry. Its members constitute over 90

More information

Poll Highlights. PENSION MANAGEMENT RESEARCH PANEL Poll: DB Pension Management Mid-Year 2014

Poll Highlights. PENSION MANAGEMENT RESEARCH PANEL Poll: DB Pension Management Mid-Year 2014 PENSION MANAGEMENT RESEARCH PANEL Poll: DB Pension Management Mid-Year 2014 Poll Highlights In the summer of 2014, the Pension Management Research Panel conducted a poll to uncover current practices in

More information

Investment Guide. Understanding how your pension is invested

Investment Guide. Understanding how your pension is invested Understanding how your pension is invested Introduction The Creative Pension Trust ( the Scheme ) is an occupational money purchase pension scheme. It operates as a master trust, which means that many

More information

6. Funding issues and debt management

6. Funding issues and debt management 6. Funding issues and debt management David Miles, with Laurence Mutkin and Rustom Irani (Morgan Stanley) Summary In recent years, the UK government s cost of borrowing has been falling in both nominal

More information

Primary Dealer in Danish Government Bonds. Contract

Primary Dealer in Danish Government Bonds. Contract Primary Dealer in Danish Government Bonds Contract The Danish Government Debt Management at Danmarks Nationalbank, agent of the Ministry of Finance, herein subsequently referred to as Government Debt Management,

More information

Balanced Fund RPBAX. T. Rowe Price SUMMARY PROSPECTUS

Balanced Fund RPBAX. T. Rowe Price SUMMARY PROSPECTUS SUMMARY PROSPECTUS RPBAX May 1, 2016 T. Rowe Price Balanced Fund A fund seeking capital growth and current income through a portfolio of approximately 65% stocks and 35% fixed income securities. Before

More information

Developing the Domestic Debt Market The South African Experience

Developing the Domestic Debt Market The South African Experience Commonwealth Secretariat Debt Management Forum Developing the Domestic Debt Market The South African Experience June 2008 Challenges for South African Debt Market 2 Challenges. Domestic debt management

More information

Borrowing and Related Financing Activities

Borrowing and Related Financing Activities Borrowing and Related Financing Activities Borrowing and Related Financing Activities DPI-7 Borrowing Planning DPI-8 Borrowings DPI-9 Loan Guarantees, On-Lending, and Derivatives Policies and procedures

More information

Overview. A Brief History. Pension Policy for Financial Crises: Experience in Canada, Ireland, the UK and the US

Overview. A Brief History. Pension Policy for Financial Crises: Experience in Canada, Ireland, the UK and the US Pension Policy for Financial Crises: Experience in Canada, Ireland, the UK and the US Gerard Hughes and John Turner Presented at the ENRSP Conference Protecting Pension Rights in the Economic Crisis Leuven,

More information

LDI for DB plans with lump sum benefit payment options

LDI for DB plans with lump sum benefit payment options PRACTICE NOTE LDI for DB plans with lump sum benefit payment options Justin Owens, FSA, CFA, EA, Senior Asset Allocation Strategist Valerie Dion, CFA, FSA, Senior Consultant ISSUE: How does a lump sum

More information