Thursday 5th March 2015
NEWS TICKER, WEDNESDAY, MARCH 4TH 2015: The number of Spaniards registered as unemployed fell by 13,538 people in February, a fall of 0.3%. Even so, the government acknowledges that a massive 4,512,153 people remain without work. In a press release, the Ministry for Employment says said reduction in jobless was best monthly improvement in February since 2001. Seasonally-adjusted unemployment fell by 49,653 people. The government also says 300,333 fewer unemployed people since February 2014 was: "the largest year-on-year reduction in unemployment since 1999". The total number of unemployed Spaniards this month—the fourth February with Mariano Rajoy as Prime Minister—was still higher than all of the February data points for the last four years of the Zapatero government. The number of people registered with Spain's social security system rose by 96,909 in February - Record high inflows send Japanese ETFs’ AUM higher, surpassing $160bn. The Apac region excluding Japan has also seen strong inflows, pushing the AUM mark past $78bn. Investors are still avoiding the riskiest names in the region; firms whose CDS spreads have widened the most have seen negative returns - CBOE Futures Exchange reports February average daily volume in VIX futures was 166,547 contracts, a decrease of 23% from February 2014 and a decrease of 27% from January 2015. Total volume in VIX futures for February was 3.2m contracts, down 23% from a year ago and down 31% from the previous month - The Straits Times Index (STI) ended +1.03 points higher or +0.03% to 3403.89, taking the year-to-date performance to +1.15%. The FTSE ST Mid Cap Index declined -0.39% while the FTSE ST Small Cap Index declined -1.14%. The top active stocks were SingTel (+0.47%), DBS (-1.48%), OCBC Bank (-0.86%), Noble (-3.08%) and UOB (-0.04%). The outperforming sectors today were represented by the FTSE ST Consumer Goods Index (+0.68%). The two biggest stocks of the FTSE ST Consumer Goods Index are Wilmar International (+0.31%) and Thai Beverage (+2.14%). The underperforming sector was the FTSE ST Basic Materials Index, which declined -3.44% with Midas Holdings’ share price gaining +1.61% and Geo Energy Resources’ share price declining -1.57%. The three most active Exchange Traded Funds (ETFs) by value today were the STI ETF (-0.29%), IS MSCI India (+0.37%), SPDR Gold Shares (+1.10%). The three most active Real Estate Investment Trusts (REITs) by value were Ascendas REIT (+1.62%), CapitaCom Trust (-0.57%), CapitaMall Trust (+1.90%). The most active index warrants by value today were HSI25000MBeCW150330 (-7.69%), HSI24200MBePW150429 (-3.94%), HSI24400MBePW150330 (-7.32%). The most active stock warrants by value today were OCBC Bk MBeCW150803 (-13.56%), UOB MB eCW150701 (-1.97%), DBS MB eCW150420 (-22.61%).

West Midlands Integrated Transport Authority completes first Local Government Pension Scheme buy-in

Friday, 20 April 2012
West Midlands Integrated Transport Authority completes first Local Government Pension Scheme buy-in West Midlands Integrated Transport Authority (WMITA) has completed the buy-in of its pensioners with Prudential and the assistance of Mercer and Squire Saunders. This is the first  local authority involvement in UK’s buy-in market. With a premium in the region of £272m, this is the largest such transaction to date in 2012. http://www.ftseglobalmarkets.com/

West Midlands Integrated Transport Authority (WMITA) has completed the buy-in of its pensioners with Prudential and the assistance of Mercer and Squire Saunders. This is the first  local authority involvement in UK’s buy-in market. With a premium in the region of £272m, this is the largest such transaction to date in 2012.

West Midlands Integrated Transport Authority (WMITA) has completed the buy-in of its pensioners with Prudential and the assistance of Mercer and Squire Saunders. This is the first such transaction for any local government pension fund. With a premium in the region of £272m, this is the largest such transaction to date in 2012.

A buy-in is an insurance wrapper which provides payment of pensions for the insured section of a pension fund’s members. The Fund continues to be managed as before but the transaction gives them certainty over their costs. This is distinct from a buyout where the liabilities are fully transferred to an insurance company.



According to Geik Drever, director of Pensions at the West Midlands Pension Fund, the transaction forms an important part of the WMITA Fund’s risk management strategy, "and has insured  circa 50% of the fund’s liabilities. It has protected the fund and the sponsor against the volatility of investment markets and any unanticipated increases in life expectancy of the pensioners. Risk management is a very important part of local authority governance for both the main fund and the WMITA Fund, and as such this is a welcome outcome given the policies in place for the Funds as well as the Authority.”

According to Clifford Sims, partner at Squire Saunders, the law firm which advised the authority and its fund on the legal issues surrounding the transaction: “As in all local government contracts, the public sector procurement process, which requires great depth of transparency and objectivity, had to be followed. This transaction is the first time that these procedures have been entwined in the processes surrounding a bulk annuity transaction. Another feature was that the price was determined by an electronic auction process enabling the price to be settled in a matter of hours.”

Paul Middleman, fund actuary and head of Public Sector Consulting, adds, "Whilst we have seen this in the private sector this is breaking new ground in the sector in terms of local authority pension fund risk management for a sponsoring employer and ultimately the taxpayer. The transaction required a team with specialist knowledge and experience when determining whether it was the right option. Now one Fund has taken the plunge we could see this becoming a viable option for Funds when dealing with legacy liabilities as part of the governance around their risk management strategy."

Squire Sanders' team was headed by pensions partner Clifford Sims, assisted by senior associate Ohad Graber-Soudry on procurement issues and pensions associate Sian Williams. Global legal practice Squire Sanders, with 37 offices in 18 countries, has one of the largest pensions law teams in the UK. 

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