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.
Industry Voice: Sponsored by Eaton Vance
This week's top stories included Cardano announcing plans to acquire Now Pensions from a Dutch pension fund later this year.
Royal Bank of Scotland (RBS) faces a £102m impact on liabilities as a result of equalising guaranteed minimum pensions (GMPs), according to its annual results.