One way of preparing UK pension funds for the advent of the euro would be to start considering "re-engineering" indices now to show what might happen if the UK were already signed up, said Andrew Dyson, head of institutional marketing in Europe at Merrill Lynch. that one way to do this
Speaking at the National Association of Pension Funds investment conference in Edinburgh, he said: "It's time to think about changing the old two asset system the UK uses - UK and World-ex UK. In margin terms the differences are minimal, but translated into capital value, they are considerable. Now is the time to look at indices based on UK, Europe including the UK and World including UK," he said.