UK - Pension funds can cut investment costs by improving their trading practices, Axa Investment Managers says.
The firm’s global chief investment officer Chris Cheetham believes funds should ensure they are “trading well, trading less and trading cheaply”.
And he says this will be necessary as equities will only marginally outperform gilts over the next few years.
He said Axa currently favoured UK equities because of their “valuation, high standards of corporate governance and a focus on cash flow and dividends”.
Cheetham added that the “economic policy in the Anglo Saxon world is more likely to stave off any risks of deflation”.
He added that slow economy-wide growth – combined with excess capacity, intense competition and increased consumer sovereignty – meant that “excess returns” on capital would be very hard to achieve over the next few years.
The registration deadline for the Workplace Savings & Benefits Awards 2019 is today.
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