Some highlights from Monday’s FTfm.
Developed world returns set to weaken
Future returns from developed world equities and bonds will not match those of the past 110 years, two heavyweight reports say, sounding a warning signal for all those pension funds who have not diversified out of developed world investments yet
European bond managers expect fall in inflows
More than two thirds of fixed income managers surveyed expected a drop in inflows in 2011 following outflows of $25bn from global fixed income funds in December last year, but on the back of two strong years of inflows
Investors bullish on Latin America
Latin American investors remain bullish on the continent’s outlook in 2011, a new poll says, even though money is dripping out of emerging market equities generally
How EM debt actives consistently outperform
Active managers have bucked the trend for active managers generally with emerging market debt and have surprisingly outperformed their benchmark by a long way. Industry experts say they are managing this because domestic players are not seeking a profit and are losing out
DC looms for public sector pensions
The cost of providing final salary pensions in the private sector has been made apparent through greater transparency, if the public sector adopts similar transparent accounting, it will be hard to make a case for the status quo, says Pauline Skypala
Pitfalls of the US cheap gas habit
Cheap gas is good for Americans now, but it is enabling a growing dependency on gas-generated power that will only get more expensive, and force it to the back of the queue for gas supplies in the future. The problem is that the initial production costs for shale gas are low compared to what they will cost in the future
Lessons from the index-linked bonds battle
There are lessons to be drawn from a battle over the wisdom of savers investing their pensions in equities to protect against inflation or holding index-linked bonds, says John Plender. His own view: it would be unwise for private savers to stock up heavily on inflation-protected bonds now and barmy to go to 100 per cent