chain reaction

The recently released Myners Review of Institutional Investment examining the investment processes of UK pension funds will mean wholesale changes to the UK gilt and corporate bond markets and affect those investing in fixed-interest funds. The review recommended abolishing the minimum funding requirement (MFR), which requires pension funds to match their liabilities to pensioners with investments in low-risk, low-return gilts (UK government bonds). This, experts argue, could lead pension funds into riskier, alternative investments such as venture capital, or shares. The Blair governmen...