BT’s £39bn pension fund has cut back its exposure of London-listed stocks to just £100m – or 0.3pc of assets – new figures have revealed. Investment has fallen from £300m last year and £3.6bn in 2010.
The BT scheme is the largest on London’s blue-chip FTSE 100 index, with around 270,000 members.
The pension fund’s decision to reduce its holdings of British equities is a blow to the Chancellor’s ambitions to trigger a new “Big Bang” in the City by encouraging retirement savings managers to invest in the UK.
Mr Hunt has committed to a series of banking reforms that are intended to slash red tape and have attracted comparisons with Margaret Thatcher’s overhaul of the Square Mile.
The failure of BT’s pension fund to back Britain also drew condemnation from Baroness Ros Altmann, former pensions minister.
Former pensions minister Baroness Altmann said it was an outrage that the fund was not supporting the UK economy
Credit: Jonathan Brady/PA Wire
Baroness Altmann said: “It’s an outrage that a major pension fund, especially one underpinned to some degree by the Government and funded to a significant degree by taxpayer money, is not supporting the British economy.
“If you don’t have domestic sources of long-term funding supporting your own economy, then however much you believe you’re going to get a better return from investing overseas, you are impoverishing your own domestic base and therefore your members are going to have a poorer retirement because they’ll be living in a poorer country.”
Nick Delfas, an analyst at Redburn, said BT’s paltry domestic holdings “jumped out” and urged policymakers to take note.
She added: “I just think we’ve lost the plot a little bit on what a pension fund is meant to achieve… it’s about time we helped pension funds understand that there is a responsibility that goes along with getting tax relief.”
A spokesman said the BT pension scheme was reducing its exposure to equities as part of a de-risking strategy. The scheme is highly mature, with an average member age of 68.
The scheme’s overseas equities have also suffered heavy losses, tumbling 75pc to £1.7bn.
Nevertheless, the small proportion of UK stocks held by the fund highlights the FTSE 100’s waning status among global rivals. Last year, Paris leapfrogged London to steal the crown as Europe’s largest stock market.
John Ralfe, a pensions expert, said: “The truth is, the UK is a small stock market.”
A sharp fall in government bond values in the aftermath of Liz Truss’s mini-budget triggered margin calls on products called liability driven investments (LDI), which are popular with pension funds.
The Bank of England was forced to make a dramatic £65bn intervention to mitigate the crisis, which forced many pension funds to rapidly sell assets to meet margin calls.
BT’s pension fund suffered an estimated £11bn drop in the value of its assets as a result of the crisis and is down almost £15bn since 2022.
Analysts also raised concerns about the high proportion of illiquid assets held by the BT pension scheme. Following last year’s sell-off, just 65pc of the scheme’s asset base is quoted, according to Redburn.
Illiquid assets are considered riskier as they are harder to sell, while it is also more difficult to establish a value.
The revelations come just days before the work and pensions select committee is due to begin an inquiry into defined benefit pension schemes amid concerns last year’s crisis exposed weaknesses in governance and regulation.
Wyn Francis, chief investment officer of Brightwell which manages the BT pension scheme, said: “The BT Pension Scheme is a major investor in the UK with 64pc of its total assets invested in UK gilts, corporate bonds, property, public equities, infrastructure and private equity.
“As a mature pension scheme, it is on a de-risking path so the allocation to equities has been steadily reducing for a number of years.
“Offsetting this, the scheme has been growing its exposure to the UK through investments in corporate credit, direct lending, infrastructure and income generating property.”
TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.
The S&P/TSX composite index was up 254.62 points at 23,847.22.
In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.
The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.
The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.
The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.
This report by The Canadian Press was first published Sept. 19, 2024.
Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.
For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.
Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.
Let’s unearth how these updates can simplify the process for you and your family.
What is probate?
Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.
Here’s how it works.
Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.
Probate ensures everything is done by the book, giving you peace of mind during a difficult time.
Recent Changes in Canadian Probate Laws
Several updates to probate law in the country are making the process smoother for you and your family.
Here’s a closer look at the fundamental changes that are making a real difference.
1) Virtual witnessing of wills
Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.
Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.
2) Simplified process for small estates
Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.
Fewer forms and legal steps mean less hassle for families handling modest estates.
3) Substantial compliance for wills
Courts can now approve wills with minor errors if they reflect the person’s true intentions.
This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.
These changes help make probate less stressful and more efficient for you and other families across Canada.
The Probate Process and You: The Role of a Probate Lawyer
(Image: Freepik.com)
Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.
Here’s how they can help.
Navigating the legal process
Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.
Handling paperwork and deadlines
They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.
Resolving disputes
If conflicts arise, probate lawyers resolve them, avoiding legal battles.
Providing you peace of mind
With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.
With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.
Why These Changes Matter
The updates to probate law make a big difference for Canadian families. Here’s why.
Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.
With these changes, probate becomes smoother and more manageable for you and your family.
How to Prepare for the Probate Process
Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.
Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.
These simple steps make the probate process easier for everyone involved.
Wrapping Up: Making Probate Easier in Vancouver
Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.
Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
