The American way
Article Abstract:
New US pension schemes are more likely to be of the defined contribution variety rather than final salary schemes, and this trend is more pronounced than in the United Kingdom. US personal pensions are called Individual Retirement Accounts, and can be set up together with occupational schemes, something that is not permitted in the UK. Index funds have become popular in the US because stock markets have performed well, but this strategy cannot be used indefinitely and derivatives may become more commonly employed.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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Equities without upheaval
Article Abstract:
Derivatives can help control risks involved in investing in equities by reducing volatility, so are a useful tool for pension fund managers. Derivatives can be used to skew risks, reduce expenses, and provide exposure to underlying assets in a cheaper way than if those assets had been bought directly. Dealing expenses can be reduced, and custody charges and foreign withholding taxes can be avoided. A reduction in expenses can significantly improve the performance of a pension fund.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
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