It's our round-up of the stories your clients may have read in the national newspapers over the Easter break...
An alarming piece in the Telegraph just as readers settled into their Easter break, with the suggestion that defined contribution (DC) pension schemes require ten times input for the same retirement income as a defined benefit (DB) scheme. According to the report, a worker aged 35 on a DC scheme would need to contribute 55% of their salary to get the same retirement income as a worker paying just 5.1% into a DB scheme.
There was no beating around the bush in the Independent, which sought to expose the ‘flop funds' which are leaving investors seriously short-changed. The three worst funds over the last decade were the Manek Growth, Invesco Global Technology and Invesco Perpetual US Equity, while the poorest-performing IMA sectors were North America, Japan and the Short Term Money Market.
The mad dash to use up any allowances before the tax year end deadline may have passed, but that does not mean everything has gone quiet on the ISA front. As the Guardian reported, the allowance for 2012/13 has been increased to £11,280 (£5,640 in cash) and the paper attempted to sniff out some of the top rates around at the moment. However, there appeared to be little positive news on the cash ISA front, with none of the ‘best' deals paying more than 3.5%.
Stories your clients may have read in the nationals last weekend
Star fund managers
Fidelity's woes with the Special Situations fund, run by Sanjeev Shah, inspired the Telegraph to find out if the star managers out there are really performing. Among the other strugglers included in the piece were Philip Ehrmann, with his Jupiter China fund, and Mark Lyttleton's BlackRock UK Absolute Alpha fund. Meanwhile, the Aviva Property Trust, formerly known as the Norwich Property Trust, was cited as an example of a fund hit particularly hard in a struggling sector.
Emerging market gilts
Anyone tempted by the high returns being offered by emerging market gilts may have had a pause for thought if they read the Independent on Sunday, after it looked into the risks investors may be taking. A history of defaults and economic crises in emerging markets was one of the dangers cited, while an expert also explained how some of the funds and managers investing in these gilts do not all have strong track records.
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