Positive outlook for corporates

Pension funds will increase their weightings to corporate bonds if the Institute of Actuaries' Minimum Funding Requirement (MFR) recommendations are implemented, according to Old Mutual. The Institute is recommending a composite index consisting of gilts and investment grade bonds, covering all terms to maturity, as the basis for future MFR calculations. Bob Attridge, head of fixed interest at Old Mutual, said in such an event managers would invest in precisely these assets, right down to BBB-grade bonds, to match their liabilities. He added: "The report encourages people in the view that...