Discount Rate Quandary - Estimating UK equity returns

​The FTSE 100 Index of the largest companies listed on the London Stock Exchange went above 7,000 on 16 December 2015 and since then has consistently traded above that level. For so long, it looked as if the FTSE 100 might never truly break through the 7,000 mark, which appeared to be acting as a glass ceiling, preventing stocks from trading any higher.

The FTSE 100 peaked on 31 December 1999 at 6,930, and after taking nearly 17 years to make a sustained recovery, the index has now been consistently above 7,000 for more than five months.

Our recent research report, 'The Discount Rate Quandary', outlined three different ways pension schemes could estimate future equity returns.

Here, we use these three methods to see which provides the best estimation of equity returns since 31 December 1999.

To read more click here.