Emerging markets claimed the overall prize for equity performance for the month of May, according to index group FTSE.
While world markets overall showed a slow decline, four emerging markets all managed double-digit percentage gains. The star of the show came from Latin America, where the Colombian market gained nearly 22% in US dollar terms, as the government pushed through economic reforms. Indonesia gained nearly 20% as it rebounded from losses prompted by the country’s political turmoil. The two former Communist giants, Russia and China, also performed strongly.
Turkey was among the emerging market casualties and Greece ceased to qualify for inclusion within the emerging market funds.
Developed markets appeared to consolidate after April’s big rally as investors recognised that despite interest rates cuts in the US, UK and Europe, economic growth remains sluggish and corporate earnings are still under pressure. European markets suffered particularly, as it become clear that growth was slowing in Germany and France.
By Janet Du Chenne
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