PORTUGAL - Portuguese pension funds posted a return of 1.7% in January 2005 on the back of a robust performance from the Portuguese equities market which returned 5.5% during the month, its highest since November 2001.
Latest figures from Watson Wyatt reveal that international bonds also posted positive returns at 3.9%, mainly due to the appreciation of the US dollar.
Other Euro equities returned 2%, while international equities posted a return of 1.9%. Euro public debt (fixed rate) returned 1.3% while other Euro bonds (fixed rate) returned 1%.
“January was a good month, mainly due to the good performance in Portuguese equities which led European bourses with the best performance in January (5.5%) and reaching the highest value since November 2001.
“The financial markets had positive returns, stimulated by companies' results and corporate activity, despite a fall in equities in the USA (some 2.5%) which was explained by a number of key events (a) technology companies having negative results, (b) Federal Reserve President comments about the interest rate increase' and (c) increase in oil price (some 10%) as a consequence of a production cut by OPEC and also bad weather conditions,” said Watson Wyatt in a statement.
The US Dollar registered a gain of 4.5% and interrupted a negative sequence of 5 consecutive months (12% of accumulated losses).
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers