Bringing you live news and features since 2006 

Negative returns and uncertainty are top BREXIT concerns for UK pensions industry

RELATED TOPICS​

According to new EU Referendum research from mallowstreet, the biggest concern for the UK pension industry is that a ‘leave’ vote would cause negative portfolio returns and result in a prolonged period of uncertainty.

This latest survey from mallowstreet, the platform bringing the institutional pensions industry together to help solve the pensions and savings crisis, was conducted towards the end of May with a diverse group of pension professionals from its 3,000-strong community of key stakeholders. 
 
With two weeks to go until the Referendum on the 23 June, these survey results underline how this concern over potential market events is playing out. When asked how they think Brexit will affect their scheme’s investment portfolio, 1 in 2 (51 per cent) believe any resulting impact would be quite negative, predicting up to 10 per cent loss on the assets in their portfolio, while 5 per cent believe their portfolios would suffer a loss greater than 10 per cent. 1 in 10 (10 per cent) predict a positive impact (potentially generating 5 per cent additional returns), and a third (32 per cent) foresee no impact.

In terms of key investment concerns, respondents were asked to highlight their top three.  Once again, top of the list is market volatility, with 1 in 4 (26 per cent) citing this as a concern, next is political uncertainty (21 per cent), followed by exchange rate volatility (18 per cent).
 
This latest survey from mallowstreet follows research on the EU Referendum in May, which found that 3 out of 5 solutions providers, trustees and consultants said that they wanted to remain in the EU.
 
Stuart Breyer (pictured), Chief Executive Officer, mallowstreet, says: “What is clear from this second survey is that the industry is in limbo and will remain so until the results are announced. Only then, if we end with a Brexit, will we see the real impact.
 
Anything else is impossible to predict, which is not a comfortable position for trustees and sponsors to be in when making crucial long-term planning decisions around their pension fund’s investment strategy.”

Latest News

Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

ETFs
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by