Reuters to review Swiss DC fund
SWITZERLAND/UK - International news organisation Reuters says it wants to review the investment mix of its new Swiss defined contribution (DC) pension fund.
The DC fund, which was launched this year following the closure of the old defined benefit (DB) fund, has so far not reviewed its investment strategy as it was built on the old scheme's foundation, according to Maggie Lester, international benefits manager for Reuters.
"It is actually still the same fund and we dotted lined the investments, a very clear dotted line," said Lester.
"The investment mix has stayed the same for the time being and the reason we have this dotted line is because soon the profiles are going to differ," she added.
Lester argued when the new scheme was introduced Reuters took the view the profiles of the funds were not different, however, Lester now wants to review the investment process over the next year.
All participants of the old fund were transferred to the new DC fund, said Lester.
The DB scheme has a deficit at December 31 2005 of CHF46m (€27.7m) following the IFRS valuation.
Late last year, Reuters' UK fund was named as taking part in Watson Wyatt's new defined contribution "Investment Gateway", designed to implement the most efficient investment strategies possible, according to Watson Wyatt.
The gateway says it can deliver desired investment options and managers through a single structure while expanding governance budgets, and satisfying companies' requirements to deliver competitive DC pension plans to their employees.