Guido Wrong, shock.
Guido has a great story today. He notes that the Bank of England Pension Fund has moved 70% of it’s assets into inflation linked gilts, a bet on inflation. As he puts it:
Hold on, if deflation is (as the political elite and their client media commentators claim) the big threat, why is the Bank of England’s pension fund betting 3/5 of the £2.2 billion pot on hedging against inflation? This is their personal pension fund. Money talks.
It’s a shame he didn’t read the report itself.
The Trustee received formal notice in February 2007 of the proposed termination of the in-house investment management services provided by the Bank under the existing Investment Management and Custody Agreement.
In other words, the Bank no longer manages it’s own fund.