• Home
  • Admin/Tech
  • Benefits
  • Buzz
  • DB
  • DC
  • Diversity
  • Investment
  • Law & regulation
  • Risk reduction
  • Events
  • Whitepapers
  • Spotlights
  • Digital Edition
  • PPTV
  • Newsletters
  • Sign in
  •  
      • Newsletters
      • Account details
      • Contact support
      • Sign out
     
    •  

      You are currently accessing ProfessionalPensions via your Enterprise account.

      If you already have an account please use the link below to sign in.

      If you have any problems with your access or would like to request an individual access account please contact our customer service team.

      Phone: +44 (0) 1858 438800

      Email: [email protected]

      • Sign in
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
    • YouTube
  • Register
  • Subscribe
  • Events
    • Upcoming events
      event logo
      Webinar: Using passion for ESG to unleash member engagement

      This webinar will look at how pension schemes can harness their members’ interest in ESG to engage them more broadly with their pensions. In particular, it will look at exclusive research showing how members are reacting to ESG; their propensity to act versus their actual behaviour; and the expectations they have of providers in this regard.

      • Date: 26 Jan 2021
      • Webinar
      event logo
      Investment Conference

      This two part Investment Conference will bring you the latest updates from economists, asset managers and pension consultants. We will be taking a look at the outlook for the 2021 economy, alternatives, cashflow strategies and global equity markets to name a few, assessing how they fared through the volatility and what we can expect for the year ahead.

      • Date: 27 Jan 2021
      • Digital Conference
      event logo
      Webinar: What to put on your GMP Equalisation project roadmap for 2021

      This webinar will bring together views from actuaries, lawyers, administrators, trustees and data experts to look at the pragmatic, collaborative solutions that are open to schemes to solve the GMP equalisation challenges in 2021. It will assess the individual challenges schemes face with equalisations and provide some practical options that are available to resolve these issues.

      • Date: 02 Feb 2021
      • Webinar
      event logo
      Webinar: Will the world return to normal in 2021?

      In this webinar, PP editor Jonathan Stapleton will be joined by BMO’s chief economist Steven Bell and director of fiduciary management, Christy Jesudasan, alongside PTL trustee director Melanie Cusack and Isio’s head of fiduciary management oversight Paula Champion to discuss the significant impact of these themes on the pensions sector.

      • Date: 04 Feb 2021
      • Webinar
      View all events
      Follow our Professional Pension Events

      Sign up to receive email alerts about our events

      Sign up

  • Whitepapers
    • How DC schemes can gain exposure to different asset classes in a low-return environment

      So far, DC plans have largely been focused on the onset of auto-enrolment and changes to the regulatory framework - be it the ‘charge cap,' ‘pension freedoms' or consultations around ‘value for money', says Annabel Tonry, Executive Director at J.P. Morgan Asset Management (JPMAM).

      Download
      Pension freedoms three years on

      In 2015 George Osborne, then the UK Chancellor of the Exchequer, decided that those age over 55 could take much more of their pension in cash. This has since opened up a range of possibilities for DC scheme members in the world of pensions.

      Download
      Find whitepapers
      Search by title or subject area
      View all whitepapers
  • Spotlights
  • Digital Edition
Professional Pensions
Professional Pensions
  • Home
  • Admin/Tech
  • Benefits
  • Buzz
  • DB
  • DC
  • Diversity
  • Investment
  • Law & regulation
  • Risk reduction
 
    • Newsletters
    • Account details
    • Contact support
    • Sign out
 
  •  

    You are currently accessing ProfessionalPensions via your Enterprise account.

    If you already have an account please use the link below to sign in.

    If you have any problems with your access or would like to request an individual access account please contact our customer service team.

    Phone: +44 (0) 1858 438800

    Email: [email protected]

    • Sign in
 

alt=''

  • Investment

Reaching a point of no return

  • Mike Brooks
  • 08 April 2019
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
0 Comments

Slowing global growth and rising downside risk means reliability of return will be key, says Aberdeen Standard Investments head of diversified multi-asset Mike Brooks.

When Federal Reserve chairman Jay Powell warns that the next move in US interest rates is as likely to be down as up, it underscores how sensitive monetary policy has become to the weakening global growth cycle.

The rapid change of tone in Fed communication - just weeks beforehand Powell had signposted multiple rate hikes - was remarkable. But the Fed is not alone.

Confronted by a growth slowdown, central banks in developed markets have put policy tightening on ice. The European Central Bank has pushed its guidance on rate hikes back to 2020. Meanwhile, the Bank of England is on hold amid Brexit uncertainty, the Bank of Japan's framework for yield-curve control is on lockdown and the Bank of Canada has moved in a dovish direction.

Although China is adding targeted fiscal and monetary stimuli, that's in the context of an economy transitioning to slower growth. Even then, authorities express a continuing desire to keep a lid on lending in an effort to constrain shadow banking growth.

But we don't see this broad shift to easier financial conditions as a precursor to a fresh growth cycle. Developed markets are suffering from weakening demographics and heavy debt burdens, after all. Stocks appear overpriced relative to company earnings prospects, while developed market bond yields remain pitifully low.

Storm clouds lurk on the horizon, too, from the fading impact of US fiscal stimulus and the uneasy US-China trade truce to Brexit and political fragmentation in Europe. Geopolitical instability, trade protectionism and populist politics can further disrupt markets in 2019 and beyond.

We foresee considerable potential for financial market weakness. It's why we think investors should look to moderate their risk exposures. It is a good time to look beyond just equities and bonds - whose return potential has fallen and become more closely correlated.

Diversification is a way to moderate risks without necessarily sacrificing returns. The value of multi-asset investing is being able to combine asset classes with compelling yield prospects but different return drivers. This can smooth returns and reduce downside risk. It is reliability of return that will be key in coming years in the face of jittery markets.

 

Read full article.

 

Important information 


Investors should be aware that past performance is not a guide to future results. The value of investments, and the income from them, can go down as well as up and investors may get back less than the amount invested.

Aberdeen Standard Investments is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments.

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Investment
  • Industry Voice
  • Aberdeen Standard Investments
  • interest rate
blog comments powered by Disqus
Back to Top
Trustpilot

 

  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters
  • YouTube

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading