Useful Articles – August/September 2023
October 2 2023
Some recent articles and reports regarding pensions, retirement, and older workers that may be of interest are listed below.
1. Record number of firms sign up to sustainably invest UK savers’ money
A record number of companies have pledged to sustainably invest money on behalf of UK savers and pensioners.
The Financial Reporting Council (FRC) announced on Wednesday that more firms than ever before are signed up to its UK Stewardship Code 2020.
The code sets high standards for those investing money on behalf of UK savers and pensioners to create long-term value and lead to sustainable benefits for the economy, environment and society…
…Among them are 189 asset managers, 69 asset owners and 19 service providers.
They include the Arts Council Retirement Plan (1994), Aviva Life and Pensions UK Ltd, Barclays Bank UK Retirement Fund, BlackRock, Church of England Pensions Board, Royal Mail Pension Plan, Schroders, and HSBC Global Asset Management (UK).
It comes as UK companies increasingly focus on their environment, social and governance performance this year as they face closer public scrutiny and tightening regulations amid the climate emergency and cost-of-living crisis…
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By PA News Agency
2. Bulk up ‘woeful’ pension pots and help save the stock market, UK firms told
British firms should be forced to ramp up “woefully inadequate” contributions to pension pots in order to boost returns for savers and get money flowing back into London’s beleaguered stock market, a top think tank has said.
In a new report today in partnership with Abrdn and Citi, think tank New Financial called for a “reframing [of] the essay question” on how to breathe life into London’s markets, claiming that the UK should be thinking of how to deliver better returns for savers rather than simply getting cash flowing into listed businesses.
The calls come amid a raging debate in the Square Mile over how to get more retirement cash flowing into domestic companies, after pension funds’ holdings of UK PLC has cratered in the past two decades…
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By Charlie Conchie
3. UK pension schemes raise concerns over govt’s climate rhetoric
UK asset owners, including a number of pension schemes, have written to Prime Minister, Rishi Sunak, to warn that the government’s recent rhetoric could risk stopping the finance sector from making the investments needed to reach net zero and grow the economy.
The open letter, which received backing from financial organisations representing £1.5trn in assets under management, argued that, without long-term clarity from government, the £50-60bn per year of investment needed to reach net zero won’t happen…
…Signatories to the letter included Aegon, Brunel Pension Partnership, BT Pension Scheme, Camden Council Pension Scheme, Royal London, Railpen, People’s Partnership, Scottish Widows, TPT Retirement Solutions and Universities Superannuation Scheme.
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By Sophie Smith
4. BT/Drahi: financially feasible does not mean politically advisable
It is good to talk, BT Group told customers in an old marketing campaign. One thing most UK politicians prefer not to discuss is a takeover of the national telecoms champion. They would almost certainly oppose this.
M&A chatter persists nevertheless. This is because Patrick Drahi has amassed an equity exposure of 24.5 per cent. He has agreed he will attempt no full offer for BT before November 24.
Lex has assumed the highly leveraged French telecoms tycoon could not afford BT anyway. The business has an enterprise value of £26bn today, before leases. But James Ratzer of New Street Research is challenging that notion….
..He would need to appease BT’s pension trustees. They would worry that if BT struggles financially, a solvency deficit of at least £11.6bn would not be covered. That could require a large upfront payment of about £6.5bn plus annual payments of £300mn.
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by Christopher Harper
5. Five CSR changes you can make to your business today
Amid a growing demand for businesses to make a positive impact, and demonstrate their values through action, clients are becoming more discerning about who they want to do business with, while both potential and existing employees prefer companies who are committed to positive core values.
Implementing a successful CSR strategy is an ongoing process but doesn’t need to be complicated or difficult. Below are five straightforward changes you can make to your CSR initiatives today…
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By Emma O’Brien