Investing December 12, 2007

World Equity Markets Turn Negative in November

December 12, 2007 (PLANSPONSOR.com) - According to Standard & Poor's global stock market review, The World By Numbers, developed equity markets fell 4.39% in November, while emerging equity markets lost 6.18%.
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Twenty-four of the 26 developed equity markets turned negative in November erasing strong October returns, S&P said in a news release. Only Portugal (+0.60%) and Spain (+0.68%) managed positive returns during the month. Iceland (-15.48%) and Canada (-11.17%) posted the steepest drops in returns during the month.

Emerging markets performed slightly better on average as 19 of the 26 emerging markets posted negative returns in November, S&P data showed. China (-12.68%), Taiwan (-11.82%), and Peru (-11.56%) all posted double-digit losses, but strong, positive returns were posted by Nigeria (+10.59%) and Jordan (+6.02%). 

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Despite the rough month, all 26 emerging markets remained positive for the 12-month period, with Nigeria (+111%) in the lead, followed by China (+101%). 

Seven of the 10 sectors posted losses in November, following two months of positive returns for all ten sectors.  Utilities led all sectors with a 1.60% monthly return, followed by Consumer Staples with a 1.49% gain. 

Thrifts & Mortgage Finance sub-industry continued its drop, posting a 23.19% decline on top of October’s -10.43% return. 

The S&P/Citigroup World by Numbers Report for November can be accessed at  www.standardandpoors.com/indices .

Administration December 11, 2007

NH Town Considers Bailing From State Plan

December 11, 2007 (PLANSPONSOR.com) -Milford, New Hampshire, is pondering whether it should run its retirement plan on its own rather than be a part of the New Hampshire Retirement System (NHRS) because of NHRS' current $2.5 billion funding shortfall.
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The town’s Board of Selectmen decided at a recent meeting to investigate exactly how  Milford would go about withdrawing from the NHRS, according to a news report in Global Pensions, UK. The suggestion for  Milford to go at it on its own is being driven by Selectman Jim Dennis who proposed the withdrawal.

According to the news report, Dennis declared: “[A] well-designed, professionally managed, market-based plan run on a single-town basis could provide better retirement benefits for employees, less costs to taxpayers and a more flexible approach that better aligns employee and taxpayer interests.”

The board could expect more than a doubling of the town’s expenses before there were any reforms, the news report said.  

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