GLOBAL - Consultants and fund managers are urging pension schemes to invest in emerging market equities.
Watson Wyatt says that although many pension funds have serious reservations about the asset class, there is a valid argument for investment as the funds are relatively cheap.
It said emerging market funds can provide strong diversification benefits as part of a global equity portfolio as the potential for growth remains strong.
State Street Global Advisors added: “Eastern Europe remains healthy with the Russian economy performing nicely. Russia’s credit rating has been pushed up to double-B-minus, making it consistent with recent assessments.”
It said Asia remains the most prosperous region in the emerging world as growth in China continues and domestic activity in Korea, Thailand and Malaysia.
Brazilian markets are still in “disarray” with bond yields surging and the currency plummeting.
The Brunel Pension Partnership has become the fourth local authority pool to receive the green light from the regulator.
Defined benefit (DB) schemes are to be offered a new consolidator as the former chief of the Pension Protection Fund (PPF) launches 'The Pension SuperFund'.
Martin Freeman has been hired as head of technology product and development at Smart Pension, to support the 'growing' technology product side of the business.
Tim Sharp says the government has missed some big opportunities to help workers in the DB white paper.