In the last 18 months, the UK has experienced a Brexit referendum, the appointment of a new prime minister, the triggering of Article 50 to leave the European Union, a General Election in which the government lost its majority, and the beginning of critical negotiations with the EU on trade, citizens’ rights and financial contributions post-Brexit. This has all been amid a Trump presidency, European elections, and an unpredictable global economic climate.

It’s no surprise then that the political and economic uncertainty generated by the past months has filtered down to the pension industry, with pension managers questioning what this all means for their schemes.

Key issues affecting the pension sector this year have included continued market uncertainty, the roll out of auto-enrolment, and an ageing population with insufficient pension funds to see them through retirement.

So, in 2017, faced with these challenges, what does a good pension investment strategy look like?

There can be a tendency within the financial services industry to focus on short term returns and obsess about every twist and turn of the market. That may make sense for investors with short term horizons. But what most pension savers need is an assurance that their money will grow in value, above inflation, over 20, 30 or 40 years and will be there for them at the end of their working life.

Quarter on quarter returns are a distraction for pension schemes. The focus should be on whether they’re meeting their stated objectives over a much longer time horizon. Research and evidence from across the world confirms that one of the key drivers of good long term outperformance is what’s called “mission clarity” – clear objectives of what the long term goal is, and a set of guiding principles for how to get there.

Read full news here: Financial Director