Praying for stagflation – The Property Chronicle
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Praying for stagflation

The Fund Manager

We all need reminding of why investment returns are so important for so many in the private sector. Until the 1980s most employees retired on pensions provided by their employers and related to their final salaries. Employers put aside and invested funds so as to meet these obligations, and if these funds fell short of what was required, they were forced to increase pension fund contributions. Today these obligations have been transferred to the private sector employees themselves. Money is invested at the employee’s risk into pensions that may or may not generate sufficient income to fund a comfortable retirement. Moreover, with interest rates so low, these investments must be exposed to risk in order to have any chance of generating the returns required.

As a result we see the development of covid-19 and its effects on the economic and investment outlook through a different prism. The health of the economy directly affects investments that we make to fund our retirement, and events that damage the long-term prospects for economic growth have a direct influence on our retirement funds, and so those who do not work in the public sector, and whose pensions are therefore not underwritten by other taxpayers, follow the development of the virus with more than a passing interest.

The Fund Manager

About Jo Welman

Jo Welman

Jo Welman is an adviser to Epic Private Equity and the Non-Executive Director for ARK Syndicate Management Ltd, as well as advising several small companies and individuals on the structure and allocation of their investments. His previous roles have included managing balanced portfolios at Barings, Managing Director at Rea Brothers (Investment Management) Ltd, and Executive Chairman at Brit Insurance Holdings Plc.

Articles by Jo Welman

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