Home > News > Newsmakers > Trying to Save Pension, AA Stands Its Ground
Newsmakers

Trying to Save Pension, AA Stands Its Ground

AA hopes to keep its retirement plan open to new joiners.

(January 13, 2010) — The Automobile Association is one of three companies in the UK’s FTSE 100 index to stick by the expensive defined benefit pension scheme. It’s also “desperate” to keep its retirement plan open to new joiners.

While many UK firms, such as Barclays and Tate & Lyle, limited or withdrew DB pension benefits in 2009, the AA is unique.

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The car insurance and recovery firm, owned by the buyout firms Permira, Charterhouse Capital Partners and CVC Capital Partners, is negotiating with unions about the future of the pension plan. “We do not want to move from a defined benefit arrangement, which we see as a valuable benefit for employees,” said chief executive Andrew Strong in a recent letter to staff, according to Financial News Online. 

Currently, AA pays pensions based on members’ average earnings throughout their careers, rather than their final salary. AA wants to alter its pension to make it less expensive.



To contact the <em>aiCIO</em> editor of this story: Kristopher McDaniel at <a href='mailto:kmcdaniel@assetinternational.com'>kmcdaniel@assetinternational.com</a>
Home > News > Newsmakers > Best Year for Hedge Funds Since 1999; Venture Capital Suffers
Newsmakers

Best Year for Hedge Funds Since 1999; Venture Capital Suffers

While hedge funds had their best year in a decade, venture capital fundraising suffered.

(January 12, 2010) — Hedge fund industry performance in 2009 was the best year since 1999, when funds returned 31.29%.

 

According to Hedge Fund Research, which tracks a number of funds, its index of fund returns gained 1.25% in December, bringing last year’s gains up to 20.04%. After 2008’s lackluster performance with a 19.03% fall of the HFRI Fund Weighted Composite index, hedge funds prospered with nine months of strong markets in 2009.

 

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Comparatively for the year, the Standard & Poor’s 500-stock index gained 23.45%, the Nasdaq composite index gained 43.9% and the Dow Jones industrial average gained 18.8%.

 

While hedge funds profited in 2009, venture capital fundraising suffered, with 2009 the lowest fundraising year since 2003, according to the National Venture Capital Association. U.S. venture capital firms raised $15.2 billion from 120 funds in 2009, down 47% from 2008, according to Pensions & Investments.



To contact the <em>aiCIO</em> editor of this story: Paula Vasan at <a href='mailto:pvasan@assetinternational.com'>pvasan@assetinternational.com</a>; 646-308-2742

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