The value of defined contribution (DC) lifestyle funds has fallen by 5% on average since May as bond prices dropped, research from Hargreaves Lansdown shows.
The research showed that as respective economies reduced or discussed unwinding quantitative easing (QE), bond prices began to fall. The subsequent rise in the yield from bonds could force prices down...
This week's edition of Professional Pensions is out now.
Nearly 60% of UK employers consider defined contribution (DC) master trusts to be the "most suitable" pension fund for their employees, according to research by Buck.
Companies which have tried to dodge their pension duties by changing their identities are being "hunted" by The Pensions Regulator (TPR) in a crackdown on non-compliance with auto-enrolment (AE).
Removing liquidity restrictions would enable DC funds to capitalise on the potentially higher and safer returns that DB schemes have benefitted from, says Patrick Marshall.