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Insolvency trends 'not behind PPF strategy shift'

Published on 11 Mar 2010 under category: legal

The fall in corporate insolvency claims is not behind the more aggressive investment strategy adopted by the Pension Protection Fund (PPF), it has been stated.

Coming as fewer UK businesses seek out the help of insolvency lawyers as they adopt a more cautious approach to their pensions schemes, the government's pensions body has reviewed its investment strategy, and is now aiming to achieve a target of 1.8 per cent above market performance, compared to the previous figure of 1.4 per cent.

However, in an interview with Citywire conducted at the National Association of Pension Fund's investment conference in Edinburgh, PPF chief executive Alan Rubenstein has denied that the two are related.

"This year there has been a surprising lack of claims given the financial turmoil," he acknowledged.

He added, however: "We are changing strategy because we are now a bigger fund with more assets and can take advantage of more investment opportunities."

Earlier in the month, the PPF issued new guidance aimed at reminding pension scheme trustees of their powers to modify and disclaim onerous contracts, with this development potentially prompting some trustees to seek out equity release solutions so as to ensure a steady income once they stop working.

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett