UK - Commodities are "back in vogue" and should make up at least 10% of a pension scheme's investment portfolio, Barclays Bank's investment arm claims.
Barclays Capital says the asset class, which accounts for about 5% of most portfolios, offers “spectacular” returns and a valuable way of diversifying a pension fund portfolio.
Its 2004 Equity Gilt Study shows that commodities enjoyed a strong performance over the past year – making it an essential part of any fund.
It says: “Due to their complexity, commodities are often viewed as a tactical investment for those with access to specialist information and expertise. In contrast, our analysis shows they make a valuable strategic contribution to any diversified portfolio of assets.”
The firm said spot commodity prices, which have been on a downtrend during the past 25 years, may have bottomed.
“The returns accruing to investors in commodities are favourable over the long-term. There is some evidence the long decline in commodity prices is now bottoming.
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TPT Retirement Solutions has launched a pension scheme for the education sector which offers schools both defined contribution (DC) and defined benefit (DB) pension provision.
The People's Pension has revealed plans to overhaul its charging structure, cutting fees and returning profits to members with an aim to help people save more money for retirement.
Data consultancy ITM has appointed Akash Rooprai as head of client management to lead its de-risking business.