GLOBAL - Institutional pension fund assets of the world's 11 largest markets (P11) grew by 9% last year, significantly below the historic five-year average growth rate of 12%, according to Watson Wyatt.
Roger Urwin, global head of investment consulting, Watson Wyatt, said: "While assets growth of previous years has been encouraging, events of this month will serve to remind investors of the value of risk management and the benefits of diversification."
The report revealed some discrepancies between markets, proving the lack of homogeneity between P11 members. France, for example has pensions assets equal to 7% of its $1.81trn GDP versus Switzerland, where pension assets are equivalent to 145% of its $255bn GDP.
Between them, the UK, US, Japan and Canada account for 87% of total assets with Germany, France, Ireland and Hong Kong at the very bottom. Globally, the US represents 60% of all pension assets.
The P11 nations are the 11 largest pension markets: Australia, Canada, France, Germany, Hong Kong, Ireland, Japan, Netherlands, Switzerland, the UK and the US.
HMRC has confirmed providers operating relief at source pension schemes can continue to collect automatic tax relief at a basic rate of 20% under new Scottish Income Tax rules.
The Pensions Regulator (TPR) is seeking "improved" powers to set a schedule of contributions in defined benefit (DB) schemes in the government's upcoming white paper, it has revealed.
New regulatory rules which require providers and advisers to produce annuity illustrations will not solve the problem of consumer detriment as they are "fundamentally" flawed, according to Retirement Advantage.
Paul Budgen is set to join financial technology and auto-enrolment (AE) firm Smart Pension as director of business development.