‘Unprecedented’ consolidation of UK DC could see providers gain £1.5bn

first_img“The schemes involved are not simply going to be smaller master trusts set up to handle auto enrolment that will not meet upcoming capital adequacy requirements,” he said, “but will include many smaller employer-run DC schemes that will be looking to use the economies of scale and higher quality governance and administration available via a master trust in the face of rising compliance costs.”Smart Pension is not the only provider hoping to absorb smaller-scale DC providers, and IPE understands at least one other master trust in the market is including mergers with existing DC schemes within its business plan as a means of growing its asset under management, in addition to attracting new inflows.TPR is fully aware of the problems associated size of the UK master trust market, and its executive director for regulatory policy, Andrew Warwick-Thompson, has previously questioned how it should best prevent further growth in the number of providers in the market.Nigel Waterson, the chair of trustees at master trust Now Pensions, has previously suggested TPR act as a “marriage broker” in bringing about consolidation in the market, which, as of April, had seen the launch of 100 master trusts, of which over 70 were active.The regulator has championed the idea of consolidation since then, proposing it should be able to merge schemes it deems “sub-standard”. The consolidation of the UK master trust market will see £1.5bn (€1.7bn) in assets shift between pension schemes, according to estimates by one provider.Master trust Smart Pension predicted that the consolidation would occur among over 6,200 schemes with fewer than 100 members, which manage assets of £1.3bn according to figures from the Pensions Regulator (TPR).It added that a further £400m could also shift as around 20 established master trusts struggle to cope with new capital requirements the UK government has pledged to impose on multi-employer defined contribution (DC) schemes in an effort to avoid the cost of disorderly wind-ups being met by savers.Peter Walker, COO of Smart Pension, said the pensions market was set to see “unprecedented” movement within the market over the next two years as funds consolidate.last_img read more

After the Last Whistle: Why some of Ghana’s football stars retire poor

first_imgJoy FM’s Hotline documentary discusses why although many Ghanaian professional footballers become rich during their playing days but retire poor.Every Ghanaian player hopes to land a big contract with a foreign club. The dreams of some of these players come true. But soon they resort to living lavish lifestyles – going for flashy cars and girls and throwing big parties.A good number of them retire poor or not as financial sound as they used to be. Is this a cultural thing or just a lifestyle choice? It’s their LIFE AFTER THE LAST WHISTLE.last_img

Jim’s View: Talking about the Dodgers’ pitching heritage with Jon Weisman

first_img Newsroom GuidelinesNews TipsContact UsReport an Error Today’s podcast guest is Jon Weisman, author of “Brothers in Arms: Koufax, Kershaw and the Dodgers’ Extraordinary Pitching Tradition.” We discuss the process of writing this book — spoiler, he pulled together a lot of information in a relatively short amount of time — and talk about (among other things) blogging, civility, why the “historian” job may be the best one in a baseball organization, and why laying all blame for all Dodgers struggles at the feet of Andrew Friedman may be a little misguided.last_img

Worlds biggest money manager expects Bank of Canada to hit the brakes

first_img Facebook World’s biggest money manager expects Bank of Canada to hit the brakes in 2019 BlackRock says central bank will hold rates steady until at least next year — and traders largely agree Email Join the conversation → Investors have slashed expectations for hikes following a dovish December policy meeting and amid a broad reassessment of the prospect of central-bank tightening as global growth shows signs of slowing. Given increased market volatility and more restrictive financial conditions, the BOC will likely pause to see the effects of its five rate hikes since mid-2017, according to BlackRock’s Aubrey Basdeo. What does the year hold for Canadians? Watch Outlook 2019 More people are going broke in Canada as interest rates rise Biggest trade deficit in 6 months adds to evidence Canada’s economy is entering soft patch “The bank has latitude to go on an extended pause,” said Basdeo, the firm’s Toronto-based head of Canadian fixed income. “What’s the rush to get to neutral if inflation’s not an issue?”The Canadian dollar sank almost 8 per cent against the greenback in 2018, the second-worst performer among Group-of-10 currencies, although it’s rebounded along with oil to start 2019. Basdeo expects the dollar-loonie pair to stick to a 76.92-73.52 US cent range as policy makers take a wait-and-see approach, from about 75.11 US cents currently.Different ViewNot everyone agrees. Morgan Stanley recommended shorting the greenback against the Canadian dollar in a note to clients Monday, targeting a move to 78.1 US cents. While a sputtering housing market and weak business investment pose challenges to the Canadian economy, “the risk of a hawkish surprise is growing” from the Bank of Canada given such low market expectations.“Increasing prospects for a weaker USD, an underpriced BOC curve, increasingly balanced risks on oil and supportive technicals suggest USD/CAD should fall from here,” wrote foreign-exchange strategists David Adams and Sheena Shah.Citigroup Inc., while anticipating policy makers will keep rates unchanged Wednesday, sees a 40 per cent chance of a hawkish hold, and recommends clients short the U.S. dollar relative to the loonie ahead of the meeting.“Disappointment to dovish expectations may trigger a bullish CAD reaction as the BOC is interpreted as one of the most hawkish central banks within the G-10,” FX strategist Kiranpal Singh wrote Monday.Bloomberg.com Comment Bloomberg News Sponsored By: Reddit Katherine Greifeld 0 Comments Twittercenter_img Recommended For YouOman urges Iran to release seized tankerDavid Rosenberg: Deflation is still the No. 1 threat to global economic stability — and central banks know itTrans Mountain construction work can go ahead as National Energy Board re-validates permitsBank of Canada drops mortgage stress test rate for first time since 2016The storm is coming and investors need a financial ark to see them through advertisement January 8, 20191:37 PM EST Filed under News Economy Share this storyWorld’s biggest money manager expects Bank of Canada to hit the brakes in 2019 Tumblr Pinterest Google+ LinkedIn More Featured Stories Bank of Canada Governor Stephen Poloz’s team will not raise rates this year, predicts BlackRock.Justin Tang/Bloomberg What you need to know about passing the family cottage to the next generation The world’s largest money manager expects the Bank of Canada to hit the brakes on policy tightening in 2019.With officials set to convene in Ottawa, BlackRock Inc. says the central bank will probably hold rates steady until at least next year as Canadian growth cools and lower oil prices work their way through the economy, weighing on the inflation outlook. Short-end traders largely agree: Overnight index swaps are barely pricing in any tightening over the next 12 months.What’s the rush to get to neutral if inflation’s not an issueBlackRock’s Aubrey Basdeo ← Previous Next →last_img read more