Pension Policy at the Boots Co. PLC Case Solution
A proposal of transferring 100% of the pension assets was considered by the trustees of the pension scheme in the beginning of the year 2000. If executed, Boots would depart significantly from its previous pension investment strategy, which had been similar to that of other big U.K. pension funds.
Usually, such funds used outside supervisors for passive and active portfolios of approximately 75% equities, bonds that were 17%, 4% real estate, and 4% cash. This unprecedented investment policy shift would more closely align obligations and pension assets and, according to longstanding academic principles of corporate pension fund management, it might also have important effects on Boots its stockholders, and other stakeholders. In making their selection, the trustees would need to consider the practical feasibility of such a strategy in addition to these effects.
This is just an excerpt. This case is about FINANCE & ACCOUNTING
PUBLICATION DATE: June 25, 2003
Related Case Solutions & Analyses:
Aruna Roy and the Birth of a Peoples Movement in India
ETrade Securities Inc.
Breezy Boat Company
The Cost of Capital: Principles and Practice
Pacific Century CyberWorks: The Road to Privatisation
The Weekend that Changed Wall Street
BlackRock Money Market Management in September 2008 (B)
How Institutional Investors Think About Real Estate
Midland Energy Resources, Inc.: Cost of Capital (Brief Case), Spanish Version
El Conejo Family Planning Clinic
