More overseas corporate super funds face deficit rise; 'Viagra effect' hits Brazil pensions; European hedge fund closes
HSBC, Barclays pension scheme deficits rise in first half HSBC and Barclays Capital have reported deficits in their main United Kingdom pension schemes in the year to June 30. HSBC's main UK pension scheme showed a deficit of US$3.9 billion ($4.67 billion) by June 30 compared to US$392 million ($469.79 million) at the end 2008. HSBC's scheme, which was worth US$14.8 billion ($17.74 billion) at the end of 2008, has been closed since 1996, but existing members have maintained their membership. The overall pension deficit across all Barclays' pension schemes as of June 30 was £3.91 billion ($7.74 billion), compared to a 30 June 2008 surplus of £141 million ($279.1 million). Barclays' pension deficit in its main UK scheme as of 30 June 2009 was £3.5 billion ($6.93 billion), compared to a £858 million ($1.7 billion) deficit as of 31 December 2008 and a £439 million ($868.9 million) surplus a year ago.
Atticus closes flagship hedge fund One of Europe's fastest-growing hedge funds, Atticus Capital, is closing its flagship fund, Atticus Global, and will hand an estimated US$3 billion ($3.59 billion) back to investors.
The fund lost 25 per cent in 2008 and was down 6 per cent in 2009. Atticus founder and chief executive Timothy Barakett noted in a letter to investors that the global fund was up 19 per cent annually after fees since its inception in 1996 compared to 3.9 per cent for the S&P 500. Barakett said reasons to shut the fund were personal.
"After 15 years of being singularly focused on building and managing Atticus, I believe it is time to reassess my future," he said. His partner, David Slager, will continue to manage the Atticus European Fund.
China trials new rural pensions The Chinese government will roll out a new pension scheme for the country's rural workers by October, the BBC has reported.
The scheme is on a trial basis and will provide basic insurance for rural workers and farmers via a government subsidy and individual payments to a pension pot. There is already a basic pension scheme in place, but that relies solely on contributions from farmers with no government input. Anyone not paying into the existing scheme is eligible to pay into the new program.
InRetirement Services folds United States equity release firm InRetirement Services went into administration in August having failed to secure funding to remain afloat. The group is backed by European private equity firm 3i and was part of equity release trade body Safe Home Income Plans. Equity release plans have become more popular in the US for homeowners who have reached retirement age to release funds from the equity in their homes.
'Viagra effect' hits Brazil's pensions An interesting dilemma for Brazil's pension system is the so-called 'viagra effect'.
According to Brazil's National Social Security Institute (INSS), the number of older Brazilian men marrying much younger women was placing an additional burden on the country's pension system by creating a growing group of young widows collecting pension benefits for a longer period.
According to the INSS, two out of three men who were separated remarried younger women and in the 60 to 64 age range that proportion was 69 per cent. The report found only one out of three separated women remarried.
