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.
PTL has appointed Karein Davie as a client director in its Birmingham office.
The level of interest rate hedging increased to £29.5bn of liabilities in the second quarter as pension funds continued to de-risk, according to BMO Global Asset Management's research.
UK inflation has risen for the first time since November to 2.5% in July, up from 2.4% in June, thanks to rising fuel costs and the price of computer games.
The number of DB pension scheme trustees targeting a buyout with an insurer has increased significantly in the past five years, latest research from Willis Towers Watson shows.