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NAPF supports call for QE probe

The National Association of Pension Funds has backed a Treasury select committee report calling on the Bank of England to explain the impact of quantitative easing on pensions.

A report published by the TSC last week urges bank officials to provide an estimate of the overall benefit and loss to pensioners and savers as a result of QE.

The report says: “Loose monetary policy through quantitative easing and low interest rates has redistributional effects, particularly penalising savers, those with drawdown pensions and those retiring now. The Bank of England has argued that some of those effects may be mitigated by the increase in asset prices stimulated by easing.

“While the aggregate of savers and pensioners may have received some benefit from higher asset prices, there will be many individuals who will not have benefited. The bank should provide its estimate of the overall benefit and loss to pensioners and savers from easing.”

National Association of Pension Funds chief executive Joanne Segars says: “The latest cycle of QE has hit businesses with final-salary pensions for £90bn, which is cash that could go into jobs and investment instead.

“People who are about to retire who are hunting for a good annuity will get a much worse deal than they did a few years ago. QE is leaving them out of pocket for the rest of their lives.

“We want to see a stronger economy and understand the case for this monetary policy but the bank should do more to explain its impact on pensioners and savers.”


Relief roads

Last week, I considered the current high profile of anti-avoidance provisions, with special reference to the latest raft of provisions in the 2012 Budget and the much discussed, well, at least pondered, proposal to limit income tax relief claimed by individuals to the greater of £50,000 and 25 per cent of income from April 6, […]

FSCS starts payouts to MF Global investors

The Financial Services Compensation Scheme has started paying compensation to MF Global UK customers, with over £130,000 paid out of an estimated £27m-worth of claims. The FSCS has sent compensation claim forms to over 10,000 customers, including over 4,000 investors with individual accounts.Investment advisers have been hit with a £60m interim levy for 2011/12, with […]


FSCS reveals huge adviser levies (plus risk of more)

The Financial Services Compensation Scheme has confirmed its levies for 2012/2013 which will see investment intermediaries contribute £78m and life and pensions intermediaries contribute £46m, with both sub-classes at risk of further additional costs. The FSCS has today set its 2012/13 levy at £265m, £44m more than its initial proposal, with the scheme warning that […]

Investec launches diversified growth fund ahead of RDR

Investec has launched a diversified growth fund, managed by Philip Saunders, as part of its creation of a new range of risk-rated funds ahead of the RDR. The Investec managed solutions range is made up of four funds. Alongside the newly launched Investec diversified growth fund sits Alastair Mundy’s £2.2 billion cautious managed fund, and […]


Neptune video: UK economy: a sustainable recovery?

After years of a slowly brewing economic recovery, the UK has seen a strong rise in growth in recent months. Mark Martin, manager of the Neptune UK Mid Cap Fund, discusses the strength of this recovery and whether it is sustainable.

In the video, Martin addresses the following:

• Structural features supporting the UK economy
• UK mid-caps and the potential for M&A activity
• Valuations and opportunities in house builders


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