White paper: Investment Outlook 2018

JLT Investment Solutions’ paper discusses four themes in positioning for threats, taking opportunities and building well balanced portfolios from a Pension Scheme investment perspective.

Key themes:

• Central banks: quantitative easing has had an impact on asset prices. This has led to discussions about how to tighten this easing. The paper highlights that the effects of its withdrawal are uncertain.
• Brexit: there is intention to ensure the outcome is fair and prosperous for all. However, with so many stakeholders, the paper warns that there is a risk the UK will hurtle towards a cliff-edge break by accident rather than design.
• Alternative investments: these will be a key building block for portfolios over 2018. JLT considers whether they offer risk reduction or an enhanced return.
• Responsible investment: the largest pension funds in the world now put environmental, social and governance concerns at the heart of their investment process and philosophy. The paper looks at how this is and will continue to affect asset prices.