GLOBAL - Rubicon Investment Consulting's monthly group pension managed funds update delivered both good and bad news for the pensions industry.
On the plus side, it showed pension managed funds rose by an average of 2.8% over the month of August, an improvement after a sluggish July.
However, it also pointed out that bond yields fell again in August, causing pension funds' liabilities increase accordingly.
In terms of equity performance, Irish equities led the way in August, rising an average of 7.5% - way ahead of the UK average of 0.4% (sterling terms) or 2.0% (Euro terms).
US equities also increased very little, only 2.4%, despite the hold on interest rates imposed by the Federal Reserve.
Other equity performance results for August were: Eurozone 3.6%; Rest of Europe 3.1%; Japan 4.0% and Pacific Basin 3.5%.
A number of pension schemes have been prompted to lock in gains with a move into bonds after the estimated deficit across FTSE 100 DB pension schemes improved by £36bn, over the 12 months ending 30 June last year, JLT Employment Benefits found.
HM Treasury has agreed in principle to give NEST a £329m contingent liability guarantee in the event of the master trust's wind up or closure.
AMP Capital has set up a dedicated team to help institutional investors, including pension funds, invest in infrastructure through direct equity allocations.