AUSTRALIA - Confidence among Australian fund managers in local markets is at its highest level since 2005, according to the latest Russell Investments Manager Outlook.
Only 8% of the managers surveyed foresee an overall dip in the market over the next 12 months, while a record 65% expect further gains.
The outlook - which generates a quarterly snapshot of Australian investment manager sentiment - said that the cautiously optimistic outlook which emerged during the previous quarter had strengthened, with the industrial, consumer, and financial sectors expected to perform well.
Russell Investments portfolio manager Scott Bennett said, "The outlook for all asset classes has continued to improve since the June turnaround - except for a minor retraction for international shares. What's also apparent...is that Australian shares are firmly in the lead in terms of bullish sentiment. In fact, we have not seen such a high level of conviction in the local market since June 2005."
Amidst the optimism the survey also indicated that fund managers should tread carefully when investing in certain asset classes. The outlook for Australian bonds still appears to be bearish, reflecting expected increases in inflation rates. Caution also remains evident in real estate investment trusts due to expected hikes in future interest rates.
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