The 1% stakeholder cap will be a bigger drag on absolute returns than has so far been recognised due...
The 1% stakeholder cap will be a bigger drag on absolute returns than has so far been recognised due to lower long term returns on investment, predicts pension asset managers Phillips & Drew. The group's report, Pension Fund Indicators, states the cumulative effect of the flat rate, coupled with the downward trend in investment returns, particularly on long-dated bonds, is likely to be substantial. Andrew Maclaren, director at Phillips & Drew said on current rates over half the real return from long-dated index-linked gilts would be swallowed by charges. He warned the same fate could b...
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