QE

Further quantitative easing (QE) and cutting interest rates to 0.25% have not hurt businesses with defined benefit (DB) schemes, according to the Bank of England (BoE).

The 0.75% charge cap is forcing DC schemes to be creative in their investment strategy to generate adequate returns for members. One possible approach is factor-based investing, writes Michael Klimes

The cost and size of pension deficits are increasing which has consequences for trustees, company directors and shareholders. Michael Klimes asks if investors are starting to worry.

As deficits continue to grow Con Keating urges schemes to think carefully about what they do next.

Inflation measured on the Consumer Prices Index (CPI) increased to 0.6% in the year to July 2016 according to the Office for National Statistics (ONS).

Sponsor contribution levels for the FTSE 100 defined benefit (DB) schemes are the highest since 2009 according to an LCP survey.

A round-up of the key points after yesterday's rate cut by the Bank of England, and the introduction of what one economist dubbed its "bazooka surprise".

The Bank of England's decision to cut interest rates for the first time in seven years will keep gilt yields lower for longer, increasing scheme deficits which are already at record highs.

Additional QE and bond purchases

The yield on the benchmark 10 year gilt fell to a record low yesterday, dropping below 1.25% for the first time and bottoming at 1.22%.