Proposed changes to RPI: nobody needs to lose out.
The government appears to be on a pathway to amend the underlying calculation of the Retail Price Index (RPI). They plan to bring the measure into line with the Consumer Price Index including Owner Occupiers’ Housing Costs (CPIH), reducing the expected future change in RPI by around 1% per annum.
1Source Greenwich Associates 2019, GICF LDI-19 LDI overall and GICF FI-19 fixed income overall. LDI: results are based on interviews with 12 UK consultants evaluating LDI. The median (513) is the middle of those managers with five or more evaluators. Fixed income: results are based on interviews with 13 UK consultants evaluating fixed income managers. The median (493) is the middle ranking manager of those managers with five or more evaluators. Greenwich Quality Index scores for each evaluator range from 1,000=‘Excellent’ to 0=‘Poor’ with a population mean of 500. Greenwich Quality Index Overall is a composite of Investment and Service scores.