Posts by Neil

Neil Buchanan

Our latest report details market movements over the 3 month period to 30 September 2016, and how this impacts the key financial assumptions required for determining pension liabilities under FRS102 or IAS19.

Major asset classes have had a strong performance over the 3 month period to 30 September 2016. This strong performance follows on from the similar growth experienced in the previous quarters. However, it is likely that any investment gains will have been more than offset by increases in schemes’ liabilities resulting in lower funding levels. To help draw attention to the practical implications, the effect of these market conditions have been illustrated on a typical pension scheme.

Download your report

Neil Buchanan

The UK has made its choice, and has voted to leave the EU. What does that mean today for occupational pension schemes? In the wake of the result on 23 June 2016, significant market volatility ensued. With the yields on UK Government bonds falling, the majority of schemes will have experienced an increase in liabilities. However, the impact on funding will depend on a scheme’s investment strategy.

We therefore posed some of the questions which you may want answered to our own Chief Investment Officer, Simon Cohen. Read more »

Neil Buchanan

Our latest report details market movements over the 3 month period to 30 June 2016, and how this impacts the key financial assumptions required for determining pension liabilities under FRS102 or IAS19.

Major asset classes have had a relatively strong performance over the 3 month period to 30 June 2016. This strong performance follows on from the similar growth experienced in the Q1 of 2016. However, these asset classes have had their value distorted somewhat by ‘Brexit’ in the final week of the quarter. Furthermore, it is likely that any investment gains will be more than offset by increases in schemes’ liabilities (as a result of lower bond yields due to investors’ “flight to quality”), resulting in lower funding levels. To help draw attention to the practical implications, the effect of these market conditions have been illustrated on a typical pension scheme.

Finally, we also review the recent Brexit vote and how this will likely impact upcoming FRS 102 or IAS19 valuations.

Download your report now
Neil Buchanan

Our latest report details market movements over the 3 month period to 31 March 2016, and how this impacts the key financial assumptions required for determining pension liabilities under FRS102 or IAS19.

Major asset classes have performed reasonably well during Q1 of 2016. While equities had a shaky start to the year, they have bounced back to levels similar to those at the end of 2015. Corporate bonds and gilts have also experienced positive returns over the period. However, it is not all good news as it is likely that any investment gains will be more than offset by increases in schemes’ liabilities (as a result of lower bond yields), resulting in lower funding levels. To help draw attention to the practical implications, the effect of these market conditions have been illustrated on a typical pension scheme.

Finally, we also review recent developments in the arena of pensions accounting, highlighting issues that may be of interest.

Click here to download your Pensions Accounting Update now.

Neil Buchanan

Our latest report details market movements over the 3 month period to 31 December 2015, and how this impacts the key financial assumptions required for determining pension liabilities under FRS102 or IAS19.

Major asset classes have had a mixed performance during Q4 of 2015. While equities and corporate bonds have bounced back from previous lows in Q3, gilts have not enjoyed this resurgence. To help draw attention to the practical implications, the effect of these market conditions have been illustrated on a typical pension scheme.

In addition, many scheme sponsors could be concerned as pension costs charged through the P&L will continue to rise due to the changes in the pensions accounting standards. (Further details on these changes can be found here ).

Finally, we also review recent developments in the arena of pensions accounting, highlighting issues that may be of interest.

Click here to download your Pensions Accounting Update.

Neil Buchanan

Our latest special report details market movements over the 6 month period to 30 September 2015, and how this impacts the key financial assumptions required for determining pension liabilities under FRS17, FRS102 or IAS19.

Major asset classes have performed poorly over the 6 month period to 30 September 2015. However, depending on your schemes’ investment strategies, any loses from investment returns may well have been more than offset by decreased balance sheet liabilities, resulting from higher bond yields. To help draw attention to the practical implications, the effect on a typical scheme is illustrated.

We also review recent developments in the arena of pensions accounting, highlighting issues that may be of interest.

Click here to download your Pensions Accounting Update.

Neil Buchanan

In addition to various sporting celebrities, now unemployed Top Gear presenters and several car manufacturers, I also “follow” a few notable people on Twitter, one of which is the Chancellor of the Exchequer, George Osborne.

On the date of writing this blog, George Osborne tweeted “Our plan for working people gets another boost today with good news for family budgets – Inflation at zero for a second month in a row”. Remembering that this is election time and politicians are doing everything possible to endear themselves to the public (roll out the usual baby photos and visits to schools), the first half of this tweet has been written to do exactly this. I do however have some scepticism about inflationary figures being quoted as it is unlikely that my unique “basket of goods” will stack up with those components which are used to determine CPI.  (It would be quite an achievement if it did, as most of the time I don’t know what I am going to put in my shopping trolley until I am walking up and down the various isles of my chosen supermarket!) Read more »

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