UK - Pension funds which invest in stock market indices are making higher risk investments than many realise, ratings agency Standard & Poor's claims.
It says the FTSE Index offers poor risk diversification with the top 15 stocks accounting for some 63% of the market. The index is heavily weighted towards banks, pharmaceuticals, oil and telecoms companies.
S&P’s found that for the year to June, the top 15 stocks offered a lower price/earnings ratio than that of the average for the FTSE All-Share Index.
Tracker funds which invested in the FTSE100 fell by 15.2% over the year to the end of June, while those that tracked the FTSE All-Share only fell by 11.7%.
UK inflation unexpectedly rose to 2.7% in August, beating analysts' expectations of a drop to 2.4% from 2.5% the previous month.
The Pensions Advisory Service (TPAS) helped 187,000 people in 2017/18, a 9% fall on the previous year despite setting up special helplines for specific scheme members.
The Liberal Democrat party has passed a motion pledging to cap tax-free lump sums under Freedom of Choice at £40,000 if elected into government.