GLOBAL- Watson Wyatt has warned clients they will incur further losses if they rebalance their portfolios before conducting a strategic asset allocation review.
The firm suggests the increased level of uncertainty in the markets, higher volatility, and "potentially higher expected returns per unit of capital invested," could call for a lower allocation to risky assets going forward.
Because of steep drop in equity markets, investors are no longer overweight riskier assets like they had been in the past, the letter said. According to data by Watson Wyatt, investors in the seven largest pensions markets allocated 42% to equities, down from 51% five years ago.
Watson's European head of investment consulting Paul Trickett said: "Recent market events have severely challenged pension funds' strategic asset allocation choices… Pension funds now face difficult choices between looking for de-risking opportunities or re-building risk allocations."
The proposed cold-calling ban may be ineffective if a collaborative regulatory approach between the UK and the European Union (EU) is not maintained post-Brexit, the Pensions Management Institute (PMI) has warned.
Some 56% of defined contribution (DC) asset managers do not believe they will have transaction cost information in time for pension funds' March year-end statements, according to Lane Clark & Peacock (LCP) research.
NEST has appointed Clive Elphick, Martin Turner, Mutaz Qubbaj and Chris Hitchen as trustee members of its reshaped board.
Most people want to avoid investing in projects that contribute to climate change, and would consider moving to another less-exposed provider, according to a survey commissioned by ClientEarth.