Are pension fund deficits a threat or opportunity for investors?

Pension fund deficits have been a controversial topic for investors for some time. In 2016, both the British Steel pension issues and the BHS/Sir Philip Green saga have been front page news, writes RWC's John Innes.

The Brexit vote in June has made the situation even worse. It is estimated the FTSE 100's pension deficit more than doubled to over £100bn over the summer, as the effect of falling bond yields on pension liabilities swamped the rise in asset values.  This has a disproportionate effect on companies such as British Airways and BAE Systems, which have large schemes compared to their market capitalisation. Tesco shares surge 10% despite doubling of pension deficit Investors need to decide if these moves are a growing realisation of an increasingly serious problem or an opportunity beca...