Andrew Evans from Smart Pension says British retirement savings could get bigger due to Trumps win in US elections. The company (which manages money for 1‚4m people) has put 52% of its main fund in US markets
The market response was quick — S&P 500 went up 5% right after elections reaching 6001‚35 points; even though it dropped a bit its still 2‚6% higher than before. The Nasdaq index also hit new high-points despite some experts warning about trade-tariffs problems
Stock markets dont seem to care about economists warnings of world-wide problems from new trade rules: Evans thinks American-focused policies will help global pension funds grow. Smart Pension — UKs fastest-growing multi-employer scheme with £6bn in assets — sees good things ahead
[Trumpʼs] policies are going to promote American growth and‚ therefore‚ a lot of assets within American companies‚ so that actually does benefit global pension funds
Last week Rachel Reeves showed plans for big pension changes to create mega-funds that could invest £80bn better. Smart Pension likes this idea and already puts 6% in private markets; but Evans thinks govt needs better ways to support UK investing (specially after announcing £41‚5bn tax raises)
- Market jumped after election results
- S&P 500 reached record numbers
- Pension funds could see better returns
- New mega-funds might change UK pensions
The companys boss says its hard to make things work with new taxes unless govt makes new investment rules