US - Inflationary fears have been put to bed with the US equity markets posting solid gains during the third quarter of 2006 mainly due to declining oil prices, according to Mercer Investment Consulting.
Pension fund concerns regarding the possible slowdown in economic activity due to a decline in US consumption have abated following the news of gains to be had within most US equity markets.
Mercer's Q3 defined contribution universe summary showed the S&P500 index gained 5.7% during the quarter while the Lehman Aggregate posted a 3.8% increase.
Money market instruments also registered a rise of 1.2% and international equity markets gained 3.9% during the quarter.
According to the Mercer survey, global equities improved by 4.5% and outperformed international equities by 60 basis points. while Capital markets also remained solidly positive over the long term.
During the period under review, value funds outperformed growth funds as the median large cap value fund posted a gain of 5.4% compared with the 2.7% improvement of the growth fund.
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