October 2020

06Oct

LDI immune to COVID-19 but lack of diversification persists

Bookended by two “once in a generation” crises, the past decade was full of surprises, including a double bull market for both equities and fixed income. However, despite record-breaking returns in equity and fixed-income markets, the funded status of the pension plans of companies in the S&P 500 index, in aggregate, exhibited an L-shaped recovery. To answer why funded status did not keep up with soaring equity and bond returns, Voya Investment Management analyzed publicly available information published in...

October 6, 2020
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06Oct

UK launches scheme to help new COVID jobless back into work

The British government launched a new employment programme on Monday aimed at helping those left jobless due to the COVID-19 pandemic to get back into work. The Department for Work and Pensions said the Job Entry Targeted Support (JETS) scheme would be backed by a 238 million pound investment. The ministry said jobseekers put forward for the scheme would have access to tailored, flexible support to quickly get back into employment. This could involve specialist advice on how people...

October 6, 2020
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05Oct

Lengthy era of rock-bottom interest rates leaving its mark on U.S. economy

Even before the Federal Reserve said it would keep interest rates near zero for at least three more years, Dan Bienvenue knew he had a battle on his hands. As chief investment officer of the nearly $400 billion California Public Employees’ Retirement System (CalPERS), which provides benefits for 2 million current and future retirees, Bienvenue must earn an annual return of at least 7 percent. That’s not easy when the safe investments that pension funds usually rely on are...

October 5, 2020
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05Oct

PM: In 15 years Ukraine will not be able to pay pensions

In 15 years, Ukraine would not be able to pay pensions to citizens, because the state would not have such resources. This was announced by Prime Minister Denys Shmygal during his speech to the students of Lviv Polytechnic University. The head of government noted that the reason for this may be the demographic situation in Ukraine because the number of the working-age population is gradually decreasing. " ... There will be few able-bodied people and many retirees. The ratio will...

October 5, 2020
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05Oct

Ghana. Workers urged to invest in Tier-3 pension scheme

The President of Civil and Local Government Staff Association, Ghana(CLOGSAG), Dr Evans Dzikum, has asked workers to make a deliberate effort to invest part of their earnings in the voluntary Tier 3 pension scheme administered by private entities. He said that was the surest way to what he described as a happy old age as majority of workers under the present pension scheme would be entitled to only a quarter of their current incomes during retirement. Save towards pensions...

October 5, 2020
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05Oct

More sponsors in U.K. embrace outsourcing

Multiemployer providers see influx as plan trustees move to cut costs, meet regulations Multiemployer plan providers in the U.K. are winning more defined contribution business as sponsoring employers have been more decisive about outsourcing under the pandemic-induced lockdown. The heightened interest comes as U.K. employers were already increasingly considering outsourcing plan assets to multiemployer plans, known in the U.K. as master trusts, to cut costs at a time when the government has been increasing trustee duties and decreasing support....

October 5, 2020
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02Oct

The Essential 2020 Guide to Unlocking the Potential of Reverse Mortgages: Modern Retirement Planning

By Michael Malyszko A must-read book by reverse mortgage expert, Michael Malyszko, The Essential Guide to Un-locking the Potential of Reverse Mortgages breaks down the fundamentals of reverse mortgages, giving homeowners the knowledge they need to leverage the full potential of this incredible financial planning tool. In recent years, reverse mortgages have become even more common as an increasing number of homeowners have discovered that reverse mortgages are a valid retire-ment strategy, offering flexibility that few other loans and...

October 2, 2020
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02Oct

AI Human Impact: Toward a Model for Ethical Investing in AI-Intensive Companies

By James Brusseau Does AI conform to humans, or will we conform to AI? An ethical evaluation of AI-intensive companies will allow investors to knowledgeably participate in the decision. The evaluation is built from nine performance indicators that can be analyzed and scored to reflect a technology’s human-centering. When summed, the scores convert into objective investment guidance. The strategy of incorporating ethics into financial decisions will be recognizable to participants in environmental, social, and governance investing, however, this paper...

October 2, 2020
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02Oct

Fintech and Financial Literacy in the Lao PDR

By Peter Morgan, Long Q. Trinh A growing literature has examined the role of financial literacy in an individual’s income, saving behavior and the use of various financial products. However, so far, no one has examined the relationship between financial literacy and the awareness and adoption of financial technology (fintech) products, i.e., financial products provided via internet-based and mobile-based platforms. This paper examines this relationship in a developing country, the Lao People’s Democratic Republic (PDR). We use information collected...

October 2, 2020
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02Oct

Could the ESG Sector Lead the Recovery of the COVID-Economy?

By Suresh Gamlath The June 2020 outlook for the world economy, forecast a ‘synchronised deep downturn’ much worse than the 2008 crisis and ‘an uncertain recovery’. The impact of ‘lockdown’ on economic activity had a profound effect on the fortunes of firms, households, and entire industries around the world. While some sectors were buoyed by the sharp growth of home-based online working and entertainment; an overwhelming majority experienced significant contraction as demand stalled. The likelihood of large-scale corporate collapse...

October 2, 2020
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