Swiss Life Asset Management claims pension schemes need to be more selective in their investment portfolios for the rest of this year.
The sectors the fund manager will be focusing on are chemical materials, specialty retailers, industrial (such as electric components and aerospace), technology and software.
Swiss Life Asset Management believes the equity markets in the UK and continental Europe offer the greatest attractions for investment as over the past year global equity markets are 20% lower than last year’s peak.
It argues this is due to the economic benefits of deregulation, the reduction of taxes in European countries, the UK budget which underlined the Government’s commitment to increasing investment in public services and the UK market being in a good position to sustain growth in the near future.
Swiss Life Asset Management chief executive Tom McIntosh said “The question pension schemes should ask themselves is where they should seek investment opportunities in 2001, given the current low inflation and low interest rate environment. Growth recovery will be at a more modest and sustainable level in 2000. As a result competition will remain intense and growing corporate profits will continue to be difficult.
By Michael Schiniou
The Pensions Regulator (TPR) has granted 11 master trusts extensions to apply for authorisation, as it confirms it has received 22 applications ahead of the 31 March deadline.
Aegon Master Trust, Fidelity Master Trust and Ensign have sent off their authorisation applications to The Pensions Regulator (TPR).
Self-administered pension funds spent £15bn on payments to pensioners in Q4 2018, but received just £12bn in contributions (net of refunds), Office for National Statistics (ONS) data reveals.
Aberdeen Standard Investments (ASI) and Gresham House are to team up to form a joint venture.