AUSTRALIA - The Future Fund, the country's reserve for future superannuation payments, delivered a return of -1.81% over the first quarter of the year.
David Murray, chair of the Future Fund board of Guardians, said the poor overall performance, below the long term required level of Consumer Price Index plus 4.5% was a direct result of the global economic turmoil.
He commented: "The global scale of the current financial situation presents a formidable challenge to all investors. It appears to be a once in a century occurrence particularly affecting shares in financial institutions which normally make up around of quarter of market value in global equity markets."
The Future Fund said the number of global government bailouts, forced mergers of financial institutions, growing belief in a worldwide economic slowdown, were indicative of the difficult operating environment.
Murray added: "As a long term investor holding liquid assets, we are well placed to deal with this environment and take opportunities as they arise. Given the very difficult investment conditions, we continue to take a carefully considered approach to building the portfolio."
MPs failed to place legislation into the Financial Guidance and Claims bill that would have made pension guidance default, which Just Group director Stephen Lowe said left a "bitter taste".
Aegon has called for the government to double the tax exemption on employer-arranged pension advice, up from £500 to £1,000.
Institutional investor confidence in Europe rose by 8.9 points in April with each region showing growing appetite for risk, according to State Street Global Exchange.
It has again been suggested self-employed workers could enjoy pension provision through the tax return process. James Phillips explores the latest proposals.