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Article: The pension funds go slowly. (pension fund managers in Great Britain are hesitant to enter financial futures market)
- Article from:
- The Economist (US)
- Article date:
- June 29, 1991
CopyrightCOPYRIGHT 1991 Economist Newspaper Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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FINANCIAL futures are growing up in Britain. Last year almost 30m contracts were traded on LIFFE, the London Interational Financial Futures Exchange, 37% up on 1989. It will not be long, you might suppose, before even conservative investors like pension funds are as happy with futures as they are with shares or bonds. Actually, it is not that simple. Britain's pension-fund managers are embracing futures only gradually, and even those that have already done so do not agree on how they are best used. Some fund managers see no use for them at all.
The most outspoken fan of futures is Prudential Corporation, Britain's biggest fund manager, which uses them to oil large ...