Index trackers to gain from Bush reforms

Monday 7 February 2005 at 16:00

Passive fund managers are to be the biggest beneficiaries if President Bush pushes through his proposed reform of the US social security system and could capture assets of $65bn (€50bn) a year, according to a senior US fund manager.

The change will allow workers to divert a third of their payroll taxes, equivalent to 12.4% of their wages, into personal savings plans up to an initial maximum of $1,000 a year.