Getting the balance right

Inflation

pg31-serkan-jpg

UK pension funds have become almost resigned to dealing with problems. Chief among these were the slumping equity prices that decimated investment portfolios earlier this decade, fast-rising life expectancy, and the introduction of accounting rule FRS 17 in 2005, which required companies to calculate pension liabilities using a discount rate based on bond yields at a time when yields were squeezing tighter and tighter. The congestion in the UK inflation market at the start of last year, howe

To continue reading...