London borough pension funds "small, not beautiful" - Reuters UK
LONDON |
LONDON (Reuters) - London's borough councils need political impetus to reform an illogical pension fund system for their employees which is squandering money in administrative and management costs, the head of one of the capital's largest funds told Reuters.
The idea of pooling London's 34 separate local authority pension schemes to create a single fund with around 30 billion pounds ($47 billion) in assets was pitched to council leaders three months ago as a means of shaving some of the 30 million pounds annual administrative costs.
On Monday a debate will be held by British think-tank Demos between several council leaders and academics on the benefits and drawbacks of such a merger.
"Some people believe small is beautiful, others believe in economies of scale," said Mike Taylor, chief executive of the London Pensions Fund Authority, which manages over 4 billion pounds and is one of the main proponents of the plan.
"We believe that 50 years after the London boroughs were set up it's time to review the arrangements, particularly for the pension funds which seem one of the more illogical arrangements to have 34 funds doing the same thing in London."
The initiative comes at a time when pensions funds around the world are having to adjust to major shifts in demographics as people live longer as well as dwindling asset returns as markets whipsaw in thrall to the current financial and economic crises.
But any change is likely to take some years as well as much effort. Taylor says that at a time of major change in public sector pensions as the recommendations of a government-sponsored review are implemented, he would look at a target date of 2016.
Before a plan can even properly be conceived political consensus needs to be reached by the leaders of London's councils and then a proper cost benefit analysis can be commissioned, says Taylor.
He said leaders are due to get together for a formal summit in September or October to discuss the proposals further but anecdotally they have not yet been endorsed by a majority.
Opponents argue that autonomy over investment decisions for each individual pot of money might be taken away. But Taylor suggests that more needs to be done to persuade local leaders that within a pooled structure there could be several investment options.
He also says that in addition to the administrative and management costs that could be saved with a larger pool of assets, the option of an in-house manager would also be possible enabling greater investment choice and further synergies.
Proponents have also suggested that a pooled pension fund could then invest around 7.5 percent of its assets or around 2 billion pounds into infrastructure funds, which would be a welcome boost to government efforts to raise money for UK infrastructure projects.
The Pensions Protection Fund (PPF), the national lifeboat for struggling pension funds, and the National Association of Pension Funds (NAPF) is hoping to raise 2 billion pounds from 10-12 pension schemes to launch a government-backed infrastructure fund in January 2013.
This has also raised concerns that any pledge towards infrastructure projects might be politically motivated given the UK government's drive to attract funds into the sector.
"Infrastructure is the carrot to combine the fund," said Taylor.
"There are many opportunities for local infrastructure projects provided the investment case remains paramount."
($1=0.6429 pounds)
(Editing by Greg Mahlich)
London 2012: BBC gives first sight of Olympic titles - BBC News
The BBC's Olympics titles transform the landscape of the United Kingdom into a giant sporting arena
The BBC has unveiled the title sequence and marketing campaign for the London 2012 Olympic Games.
A 60-second trail was broadcast during half-time in the Euro 2012 final.
Based on a "Stadium UK" concept, the animation will be seen on television coverage and used on computers, mobiles, tablets and connected TV.
The track, First Steps by Elbow, will be available as a digital-only download from 27 July with all profits going to BBC Children in Need and Sport Relief.
The UK is seen as a giant stadium with Olympic athletes preparing and competing in a range of landscapes.
Scenes include:
- Swimmers battling it out in lanes created by buoys on a net cast by a fisherman
- A BMX rider preparing at the edge of a cliff
- Track cyclists racing around quarries
- Sprinters and gymnasts going through their paces on streets
BBC 2012 marketing head Louisa Fyans said the challenge had been to create a campaign reflecting the BBC's unique role as the UK's Olympic broadcaster and the scale of the Olympic Games.
"Animation enabled us to deliver to this brief and helped us create something really special for the BBC's London 2012 campaign," she added.
The concept was devised by creative agency Rainey Kelly Campbell Roalfe Y&R. The animation was created by Passion Pictures and it was produced by Red Bee Media.
Alison Hoad, joint chief executive of Rainey Kelly, said national anticipation had been building since London was awarded the Games in 2005.
The agency had tried to capture national pride and excitement by depicting the UK as one huge stadium, with an "epic" anthem scored by Elbow.
The band's lead singer, Guy Garvey, said: "The Olympic Games is about the coming together of people to celebrate our best athletes and it was as important to have a sympathetic theme for the losers as it was for the winners."
The track was performed with the BBC Philharmonic Orchestra and the NovaVox gospel choir.
Elbow have waived all fees and royalties and retailers will not take profits from the download.
The full 2min 40secs version of the the trail will be broadcast at 19.30 BST on Tuesday 3 July on BBC One with 60, 40, 30 and five second edits used throughout the campaign.
City of London Festival, Mansion House, London - Financial Times
After the celebrations of the past month any further talk of jubilees may seem excessive. Founded in 1962, the City of London Festival is 50 this year and is fortunate that its jubilee was timed so that it just missed being trumped by its regal counterpart, especially as they shared some of the same City landmarks.
This year’s festival opened last week with a service and concert in St Paul’s Cathedral. From the beginning the aim has been to spread music through the streets and historic buildings of the City, especially those not usually open to the public. This year’s 50th anniversary programme includes more than 100 free outdoor events and among the most prestigious of the indoor venues is Mansion House, home of the Lord Mayor of London.
It is always a pleasure to attend a concert in the Egyptian Hall, not least as the acoustics are surprisingly good given its barrel-vaulted design. Seating about 350, it is ideal for a medium-sized band of period instruments and this concert featured the Orchestra of the Age of Enlightenment, conducted by Edward Gardner, hot-foot from a blistering performance of Britten’s Billy Budd at the London Coliseum the night before.
The central attraction, albeit brief, was one of this year’s festival commissions. In theory, Tansy Davies’s Delphic Bee is a site-specific piece, as it takes its inspiration from the beehive on the roof of Mansion House, but it is unlikely that this could have been divined from any of its four short movements. The interest here was in hearing the striking sonorities that can be drawn from a nine-piece wind ensemble of period instruments – venomous (perhaps buzzing?) horns in the first movement, cocky bassoons in the third. Delphic Bee did not add up to much, though.
On either side, Gardner and the OAE played some uplifting Mendelssohn. Alina Ibragimova was the elegant soloist in the Violin Concerto, her slim, vibrato-lite tone spinning silken lines, and in the faster movements she really put on some pace. Gardner and the orchestra just kept up with her and in the Symphony No.4, the “Italian”, countered with some sprightly Mendelssohn of their own. Their final “Saltarello” left the City of London speed limit standing.
London 2012: Eriksson would have picked David Beckham - BBC News
Former England manager Sven-Goran Eriksson is surprised David Beckham has been left out of Team GB at this summer's Olympics.
Beckham, 37, revealed that he had been left out of the 18-man squad, with Ryan Giggs, Craig Bellamy and Micah Richards chosen as the over-age players.
"I would have picked him, put him on the bench at the very least," said Eriksson.
"He is an icon, he should be involved in the Olympic Games in some way."
Beckham who currently plays in the MLS with LA Galaxy, was watched twice by Team GB boss Stuart Pearce, who is set to name his final squad next week.
"I hope he will be involved in some way in the Olympic Games, it's important," added Eriksson who was speaking to the BBC Radio 5 live programme Sportsweek.
Giggs excited by Olympics
"It is the Olympic Games, it is Great Britain, it is England, it is London."
Former Manchester United team-mate Ryan Giggs, who is set to feature in the London 2012 football squad, has also admitted he is disappointed that Beckham will not be there with him.
"As a former team-mate and as a friend of David's I am immensely disappointed for him, but he will take it on his chin and carry on with his career. It's just one of those things that wasn't meant to be.
"It's Stuart Pearce's job to pick a team that he thinks can win. That's what he's done - unfortunately David's not in that 18. Like I said, as a friend I wish he was, but I'm sure the lads who are picked will go out and do the best they can."
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