Mary McDougall
@marymcd.bsky.social
Pensions correspondent @FT. Tips to mary.mcdougall@ft.com
Remember s892 that was going to screw SWFs? SWFs got cross, and @marymcd.bsky.social got the US Treasury to provide on-the-record assurance that existing investments won't be subject to changes. www.ft.com/content/c283...
Washington seeks to reassure sovereign wealth funds over tax changes
Top foreign investors have warned they could cut their US exposure if Treasury presses ahead
ft.com
Really interesting article but it's important to note that the 'cost' of these schemes is more than just the cash cost. Moving to a funded model would make them more sustainable, reduce the cost of funding them, boost investment + improve the UK's net investment position www.ft.com/content/afa6...
Are the UK’s public sector pensions unaffordable?
The Reform party has set its sights on unfunded schemes — but not everyone agrees they are a ‘major problem’
ft.com
USS has had some high-profile investment failures in recent years and its returns have lagged other open DB schemes. But its funding position has improved dramatically and a higher hedge ratio now makes the fund look more resilient. Has its investment strategy worked? www.ft.com/content/f0e9...
The questions over strategy at the UK’s largest private pension fund
High-profile losses put spotlight on the Universities Superannuation Scheme’s push into private markets
ft.com
Hosted today's FT News Briefing, featuring segments on Chinese demographics, EVs, Saudi Arabian bank borrowing and an interview with @marymcd.bsky.social on Europe's pension woes. www.ft.com/content/ae01...
ft.com
Good FT Big Read on whether Europe can still afford its generous state pensions by @marymcd.bsky.social www.ft.com/content/9c3c...
Can Europe still afford its generous state pensions?
Rising numbers of older people across the continent are straining budgets and making for some difficult political decisions
ft.com
Excellent to see @marymcd.bsky.social with a full page pensions piece in today’s FT. Politics and pensions mix badly.
Private equity has been in the doldrums, with groups struggling to exit investments and raise fresh capital. But one of the world’s biggest PE investors isn't holding back: www.ft.com/content/0b97...
The $590bn Californian investor betting big on private equity
Calpers believes private markets will outperform in the long term. Sceptics question its strategy
ft.com
Good piece by @marymcd.bsky.social on insurers taking leveraged gilt bets to enhance returns ft.com/content/427a... One reason for this demand is the UK government has closed off the market for public corporation debt (pricing at c.50-100 bps above gilts) Crucially this debt would transform the rate
Leverage creeps into gilts market as insurers seek to boost returns
Use of derivatives to enhance bets on UK government bonds raises parallels with strategies that fuelled 2022 meltdown
ft.com
In the ultra-competitive market for corporate pensions deals, and with credit spreads incredibly tight, big insurers are leveraging up their gilts to eke out higher returns. Leveraged gilts backing pensions: never goes wrong obviously www.ft.com/content/427a...
Leverage creeps into gilts market as insurers seek to boost returns
Use of derivatives to enhance bets on UK government bonds raises parallels with strategies that fuelled 2022 meltdown
ft.com
A new wave of economic nationalism in Canada is pushing the country's largest pension funds to invest more in the domestic economy www.ft.com/content/209a...
Pension funds urged to target ‘Canada First’ investments
Industry minister wants financial institutions to help cut the country’s economic dependence on the US
ft.com
Move over ‘Maple 8’, here comes UK’s ‘Sterling 20’ group of pension funds… on.ft.com/4n39uYN w/ @aarmstrongsays.bsky.social and @jenwilliamsft.bsky.social
Reeves to encourage pension groups to team up in push for UK investment
Chancellor’s Sterling 20 initiative will try to make it more seamless for pension funds to back British infrastructure and growth projects
on.ft.com
The 21 local authority pension funds orphaned by closure of Access and Brunel asset pools look set to split almost evenly with seven to Border to Coast, seven to LGPS Central, and four to LPPI (three yet to announce but two expected to go to LPPI). Govt said they could not all move together.
Baillie Gifford among fund managers at risk from pooling of local authority pension funds on.ft.com/4mC6Hpi
Baillie Gifford among fund managers at risk from pooling of local authority pension funds
Chancellor Rachel Reeves is on a mission to consolidate assets to lower costs and support investment
on.ft.com
Tax-free pension withdrawals have shot up ahead of bringing pensions within IHT and budget speculation that the tax-free lump sum allowance will be cut. FoI response from FCA. w/ @emdunks.bsky.social: www.ft.com/content/f9f9...
PFZW has pulled €14bn equity mandate from BlackRock and €15bn from LGIM as it pivots to active strategies after a sustainability review. PFZW said it had “become more difficult to align with American managers when it comes to voting”. w/ @attractamooney.bsky.social www.ft.com/content/e8ec...
Top pension fund pulls €14bn from BlackRock in sustainability pivot
PFZW dumps world’s largest asset manager as European managers increasingly diverge with US over ESG
ft.com
Reform's Richard Tice making some bold claims on LGPS reform. Many agree costs should be lower but are sceptical of his plans: www.ft.com/content/f325...
Reform UK calls for end to ‘egregious’ council pension fund fees
Populist party says taxpayers are being ‘taken for mugs’ over Local Government Pension Scheme
ft.com
How might Torsten Bell shape the autumn budget? And what's out of scope: www.ft.com/content/4b34...
Torsten Bell’s manifesto: how could UK pensions minister shape tax reform?
Rachel Reeves has given the former chief of a left-leaning think-tank a key role in preparing her Autumn Budget
ft.com
Retail gilt splurge that definitely won't go wrong continues www.ft.com/content/f744... Nice story from @marymcd.bsky.social @emilydherbert.bsky.social @lexiter.ft.com
Retail investors flock to gilts in record year
Investment platforms report big inflows as yields rise
ft.com
www.ft.com/content/8f73... The National Wealth Fund has partnered with Aware Super and Equitix to invest £500mn in battery developement and storage across England and Scotland. Aware Super hopes for double digit returns. Will British pension funds follow?
UK National Wealth Fund boosts investment in ‘volatile’ battery storage sector
£500mn cash injection into Eelpower Energy aims to draw investors and ease grid pressures
ft.com
M&G, Schroders and Hargreaves Lansdown explore entering the ‘master trust’ pension market, which DWP estimates could grow from about £140bn in 2023 to about £420bn in 2030. www.ft.com/content/685e...
M&G, Schroders and Hargreaves Lansdown explore ‘master trust’ pension market
Asset managers aim for new business as UK government pushes fewer, bigger schemes with better governance structures
ft.com
Interesting read on how pension costs are squeezing post-92 universities from @marymcd.bsky.social on.ft.com/4oTBmAW
Big LGPS news - seven of the local authority funds in the ACCESS pool have signalled intent to joing Border to Coast - which will pull its aum from £65bn to over £100bn www.ft.com/content/04b6...
Seven UK local authority pension funds to join Border to Coast
Ministers want town hall schemes to combine assets
ft.com
The latest in North American investors swooping in on the UK's pension risk transfer market @leeharris.ft.com www.ft.com/content/f460...
Brookfield strikes £2.4bn deal to buy London-listed insurer Just Group
Chancellor Rachel Reeves welcomes deal amid concerns over UK stock market departures
ft.com
HMRC has made some changes to its plans for bringing pensions within inheritance tax estates from 2027 - welcomed by scheme administrators but adds more burden to estate executors. Good news for DB schemes that death in service benefits no longer in scope www.ft.com/content/ec85...
Bereaved families to report and pay tax on inherited pensions
Government to switch responsibility away from pension providers
ft.com
UK pensions overhaul looms as minister warns of slump in retirement income https://on.ft.com/4fj0ixr
UK pensions overhaul looms as minister warns of slump in retirement income
Torsten Bell says government will ‘complete the job’ of Blair-era reforms
on.ft.com
Lord Mayor criticises UK companies for choosing low-fee pension schemes https://on.ft.com/44R7H23
Lord Mayor criticises UK companies for choosing low-fee pension schemes
Alastair King says investing in alternative assets will yield higher returns ahead of Mansion House speech
on.ft.com
Today in "reasons to be worried about long-term debt demand" #1 @marymcd.bsky.social on Dutch pension funds who are moving from DB to DC and needing a lot less long-dated sovereign bonds www.ft.com/content/8679...
Dutch pension funds set to sell €125bn of government bonds
Overhaul of Eurozone’s largest retirement sector is expected to put pressure on continent’s debt markets
ft.com
Great piece by @marymcd.bsky.social and Sam Fleming www.ft.com/content/6505... re: OBR concerns on the growing pressure on the public finances. This also highlights the flaw at the heart of the government's strategy of centralising financing via gilts in the hope that this increases future tax
UK faces ‘daunting’ risks to public finances, OBR warns
Britain’s ability to respond to future shocks is ‘substantially eroded’ because of high debt, says fiscal watchdog
ft.com
