Mary McDougall

Thank you William, much appreciated!

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

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...

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...

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

Good FT Big Read on whether Europe can still afford its generous state pensions by @marymcd.bsky.social www.ft.com/content/9c3c...

Thanks Toby!

Excellent to see @marymcd.bsky.social with a full page pensions piece in today’s FT.

Politics and pensions mix badly.

The $590bn Californian investor betting big on private equity Calpers believes private markets will outperform in the long term. Sceptics question its strategy

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...

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

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

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...

Pension funds urged to target ‘Canada First’ investments Industry minister wants financial institutions to help cut the country’s economic dependence on the US

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...

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

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

Seven UK local authority pension funds to combine assets with bigger manager Talks with Border to Coast come as Rachel Reeves pushes for consolidation of Local Government Pension Scheme

Chart credit to Toby Nangle. Story here: www.ft.com/content/04b6...

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 Chancellor Rachel Reeves is on a mission to consolidate assets to lower costs and support investment

Baillie Gifford among fund managers at risk from pooling of local authority pension funds on.ft.com/4mC6Hpi

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...

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

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...

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

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...

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

How might Torsten Bell shape the autumn budget? And what's out of scope: www.ft.com/content/4b34...

Retail investors flock to gilts in record year Investment platforms report big inflows as yields rise

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

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

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?

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

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...

How much must pre-92 and post-92 universities contribute to pensions? The schemes have different accrual rates and different levels of security, but this is what VCs see when looking at payroll: it now costs way more to hire an academic (on the same salary) at a post-92 university.

Interesting read on how pension costs are squeezing post-92 universities from @marymcd.bsky.social on.ft.com/4oTBmAW

Seven UK local authority pension funds to join Border to Coast Ministers want town hall schemes to combine assets

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...

Brookfield strikes £2.4bn deal to buy London-listed insurer Just Group Chancellor Rachel Reeves welcomes deal amid concerns over UK stock market departures

The latest in North American investors swooping in on the UK's pension risk transfer market @leeharris.ft.com www.ft.com/content/f460...

The most important story in the world right now.

Bereaved families to report and pay tax on inherited pensions Government to switch responsibility away from pension providers

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...

UK launches review into state pension age Move announced as government appoints commission to look at boosting retirement savings

UK launches review into state pension age https://on.ft.com/3UnSBfu

UK pensions overhaul looms as minister warns of slump in retirement income Torsten Bell says government will ‘complete the job’ of Blair-era reforms

UK pensions overhaul looms as minister warns of slump in retirement income https://on.ft.com/4fj0ixr

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

Lord Mayor criticises UK companies for choosing low-fee pension schemes https://on.ft.com/44R7H23

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

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...