PORTUGAL - October was the worst month this year for Portuguese pension funds, with a negative 1% return posted against a background of falling markets and the expectation of higher inflation.
Watson Wyatt said the compounding of SEMP’s average asset allocation as at the end of June 2005 with the corresponding indices’ monthly returns produced an expected average return of -1.0%.
Main negative contributions came from equities, which make up 30% of the total portfolio, and Watson Wyatt said that it expected all but cash and cash-related instruments to have posted negative returns by the time it had produced final figures for the month.
Expected returns, non-annualised, for the 10 months to 31 October 2005 were 6.2%.
Actual returns were 1.9% in Q1 for 2005 and 2.5% in Q2 for 2005.
Jonathan Stapleton asks whether newly-accredited professional trustees should be a statutory fixture on pension scheme boards.
Savers are being warned by the Insolvency Service to guard their pension pots from investment scammers and negligent trustees as it winds up 24 companies.
Respondents say they should only be required in certain situations as the system is not broken.