Pension Investment in the UK and Europe – IPIN Investment Review
The investment market always saw a rapid change as an inevitable development. Nowadays, it rings even more true, what with technological advancement and new industries opening up. In this article, we take a look at the pension investment market and what changes might happen to alter the future prospects.
The second part of the article, we review an investment firm called IPIN and controversy the organisation brought upon the market in its years of activity. Clients had many complaints regarding the company’s policies, as well as its programs, which were deemed as “too good to be true”.
Importance of Pension Investment
For any sort of industry to grow, investments from outside are needed due to limited resources businesses have. Pension fund companies would provide large funding for operations that would be out of the reach for companies seeking to expand their network. These trust funds also pick up contracts made with parties that make regular investment efforts.
In the UK, the pension funds' worth reached £39 billion in 2017, with steady growth expected to continue in the following years, according to the UK's Office for National Statistics. Moreover, these trust funds work with a wide range of industries, enabling enlargement of stocks, commodities, and real estate sectors.
As for the EU, according to the ECB data, pension fund companies are also experiencing steady growth since 2016. Taking a look at the assets section of the ECB report, the growth was largely expressed in debt and money market funds.
The Netherlands lead the Eurozone, with Germany being the only other country that might be considered near. Each country has its own set of laws regarding these trust centres, though the markets involved in investments are similar across regions. The data shows the importance of the growing sector, as it provides necessary funding in turbulent times that both EU and UK face, especially after Brexit.
The Future of the UK & European Markets
Before anything else, it is important to draw our readers’ attention to one simple fact. Private pension funds are just that – private. They are operated by companies or individuals whose main goal is profit. Although providing benefits back to benefactors, pension funds take funds gathered from investors and indulge in stock or commodity trading. They also work with the real estate market, depending on the size of the fund.
All of these sectors are risky, to say the least, and pension funds are known to be more "adventurous" than insurances for example. More importantly, there is a good number of companies that turned out to be a complete scam. Thus, stock trading has been mostly off-bounds for pension funds. Now, however, both UK and European Union regulating bodies are recognizing the importance of these investment companies.
The UK’s government is currently working on policies that would regulate investments made by the pension funds in 2017. The policy is said to be regulating start-up funding and commodity trade, bringing security back to the market. Nevertheless, a certain degree of freedom is left to the market, as not to disrupt the balance.
The OECD also gave positive remarks regarding infrastructure potential that pension funds can leap at. Overall, the pension investment market grew in most European countries and the path does not stop there, according to the OECD findings. Over 15% growth was recorded in nine non-OECD countries and 32 OECD regions as well during 2016 and 2017, which only supports our earlier findings.
Even public funds are looking to enter the commodity markets. According to the Financial News, Nest (biggest UK public pension fund) plans to enter oil, gold, and other commodities trade industry with its own resources, propelling the funding industry at the same time.
Although the industry faces a positive future, there are still businesses out there that you should be careful about. IPIN is one of them, a company that started out in 2009, only to be “Sold” out to an unknown company.
The reason is quite obvious, a majority of the reviews are negative, especially in the last few years. Yahoo, blogs, and other websites' comments are talking about scams, no refunds and lack of communication with the company’s representatives.
To top it up, the initial sale o operations do not have any sort of information, only that in a short time the announcement shall be made.
Portfolio holders have large complains that their funds are frozen and cannot be withdrawn back to their respective accounts. In the beginning, the company offered 15% returns on investments made into its fund, jumping to 17% in 2016. Based in Spain, its operations were not regulated by the governmental bodies and the main market as commodities. These two facts alone should ring an alarm, especially for a company that has such a bad reputation.
At the time, it seemed too good to be true yet many investors decided to provide funding nevertheless. Many have lost their funds, for which we, at Finance Recovery, know quite well about. Moreover, claims that its assets are insured have never been confirmed, further adding to the change of policies since 2009.
Although IPIN did turn out to be an unprofitable business, the market itself is thriving at the moment. Yet, IPIN should definitely serve as a reminder to investors of how risky the market is. Thus, consult with our team of professionals before you wish to engage in investment activities within the pension fund industry.
Own analysis is needed as well, mostly concerning the origins of the company, insurances made and regulations followed. You might want to read our other blogs concerning binary options and ICO markets, as they are quite similar in nature with pension funds. All three have a high rate of risk and default but are very attractive if the right choice is made.