LONDON — Pension funds of the FTSE 350 companies recorded improved funding levels in the first half of this year, but high exposure to equities and a mismatch between assets and liabilities leave many vulnerable to stock market swings, said a report by Mercer Human Resource Consulting.
Overall funding levels climbed to 98% as of June 30 compared with 93% three months earlier, using IAS 19 accounting standards. The improvement was due to favorable equity returns and falling bond yields, which lowered pension liabilities, according to the report. Twenty-one percent of the pension funds of FTSE 100 companies and 18% of the FTSE 250 pension schemes recorded a surplus.
Aberdeen acquires management firm
LONDON — Aberdeen Asset Management will acquire Glasgow Investment Managers, gaining Glasgow’s three closed-end investment trusts — the Glasgow Income Trust and Shires Income, which both invest in U.K. large-cap and midcap equities, and Shires Smaller Companies, which invests in U.K. small-cap equities. Glasgow has £429 million ($851.1 million) under management. Aberdeen had £89 billion under management and advisement prior to the deal.
Aberdeen is buying Glasgow Investment Managers by acquiring Sutherland Holdings, which has a 50.1% interest in Glasgow. Aberdeen will also acquire, subject to regulatory approval, the remaining 49.9% interest in Glasgow from Shires Income. The total cost of the transaction is roughly £8.95 million, said James Thorneley, spokesman for Aberdeen.
