UK - Equities will offer better investment returns than bonds, property or cash in the short-term, SVM Asset Management predicts.
The firm, which specialises in stock selection, said equities were showing better risk and reward characteristics than other asset classes, making them look “attractive” for pension scheme investors in the coming months.
This follows a rise in the performance of stock markets around the world during September and October ñ†a trend that is showing no signs of abating.
However, SVM was quick to caution schemes not to be “sucked into” the bullish outlook for equities in the longer-term due to soaring oil and commodity prices, and the resurgence of terrorist attacks.
“All in all, it is not a recipe for sustained upward moves in equities. With many markets now at the top end of their recent trading ranges, further progress will be harder as they encounter some well entrenched resistance levels.”
SVM’s latest investment brief said resource stocks in particular would provide welcome returns for schemes following a surge in the prices of metals and raw materials, which were at or near their highest level in several years.
It said exploration and production firms with a strong drilling performance would also provide value for schemes.
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.