So the Federal Reserve opted against their first rate hike in nine years on Thursday. It was no real surprise, we should have fully recognised that most central bankers now seem fully pre-conditioned to keep monetary policy as loose as possible, for as long as possible. Our view is that the Fed will now aim to raise rates in December, but we would add that this is mostly guesswork and point out that Fed Chair Yellen served up plenty of reasons on Thursday night why they might stand pat all year. I am fully aware that I am boring, but this subject is getting very boring. Here I go again…read more here.
Only six months ago, no one would have expected that Jeremy Corbyn would now be leader of the Labour party. However, he was duly elected with a huge 59.5% of the first preference votes. A lot could happen between now and the 2020 general election, but it may be worth considering what we know about his views on pensions policy. Read more here.
After the last few months of “pivotal” days for markets, the next forty-eight hours are set to be “genuinely” pivotal for short and medium term market direction. Or are they? We have to confess we haven’t got a firm answer to whether the Fed will raise rates tomorrow or indeed what the market reaction will be if they do or don’t; making concrete predictions leaves one open to ridicule (even more so than usual). Janet Yellen has gone missing in the last few weeks, so taking a lead from her has been impossible and hindered our view. However, today I will briefly outline our best guess as a guide for you.
Read more here.
The risk of a sponsoring employer becoming insolvent influences the size of the mandatory levy schemes pay to the Pension Protection Fund. This levy could increase as accounting standard FRS 102 comes into force for accounting periods starting on or after January 1st 2015. It means that, for multi-employer schemes, pension scheme deficits could appear on the corporate balance sheet for the first time, worsening the Experian score and increasing the levy. For full details, click here.
Trustees and sponsoring employers continue to watch global markets closely as turmoil continues. Punter Southall’s Investment Consulting team pulls together the threads to assess what it means for pension scheme investment strategies. For the full briefing note, click here.