Financial Latest - Ovetii Comments on Plummeting European Pension Deficits

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) October 29, 2007 -- Yannis Papandreou a senior analyst at Ovetii, apparently said that the latest pension deficit total for the companies in the FTSE Euro top 300 index has been reported by those companies to stand at €252bn, down from €332bn at the end of September the previous year.

However, a source revealed that, by assessing asset growth since the release of the companies' annual reports and using current discount rates to estimate the growth of pension scheme holdings, Ovetii now estimates that deficits have fallen to as low as €131bn.

A spok9‡ÈðÛš from Ovetii is said to have commented on the falling deficits saying that, until this year the deficit has largely moved in an upwards direction. He said that companies had weathered collapsing bond yields, a step-change in mortality assumptions, and a stricter regulatory regime. The spokesperson apparently showed little surprise at the latest developments, saying that it was no wonder the deficit leapt up to €332bn last year, even in a backdrop of rising asset prices.

Papandreou reportedly said that money inflows from Asia meant there was now more money chasing fewer assets, a main factor in price elevation and therefore, the reduction of scheme deficits.

athens     greece