November 2020

04Nov

Thailand. NSF aims to provide sustainable pensions for all

The National Savings Fund (NSF) targets a 10-year return of at least 3% for long-term investment in order to provide fund members with sustainable pensions. The voluntary retirement savings fund targets informal workers, and currently holds investments totalling 8 billion baht. Since its inauguration in August 2015, the NSF has registered an average return of 3%, with last year's return at 4.4%, said NSF secretary-general Jaruluck Ruengsuwan. Year-to-date return is 1.6% because of the current domestic and international economic...

November 4, 2020
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03Nov

UK. Pensions risk transfer market resilient against Covid-19

The UK pensions risk transfer market has so far shown remarkable resilience to the economic impact of the Covid-19 pandemic. Although market conditions may mean some schemes will be further away from being able to de-risk than they were before the pandemic, the market remains busy and others will still be in a position to proceed with planned risk transfer activity. We can also expect to see a greater volume of forced transfer activity reaching the market in the...

November 3, 2020
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03Nov

South Africa. Improving pension fund outcomes: a case for hedge funds

The much-debated “Regulation 28” restrictions imposed on retirement funds have made investors feel increasingly uncomfortable with having large exposure to either the local economy or the local stock market, despite its large exposure to rand-hedge stocks. Read also The savings and domestic investment paradox in Namibia Investors who are able to have greater direct offshore exposure in their investment portfolio may choose to exploit this flexibility in what is a very different state of affairs compared to many other points...

November 3, 2020
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03Nov

Retirement Saving Is Hard Even For Those Who Can Afford It

Covid-19 has thrown a wrench in retirement planning. Rising unemployment, a volatile stock market and economic uncertainty are jeopardizing the ability of many families to plan for the future. However, even before the pandemic, saving for retirement was not easy. According to a U.S. Federal Reserve report from 2018, one in four non-retired households had no retirement savings at all, and more than 40% of non-retired adults said their retirement savings were not on track. Even for those households...

November 3, 2020
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03Nov

Australian pension fund settles landmark climate lawsuit

One of Australia’s largest pension funds on Monday agreed to settle a landmark climate risk litigation filed by a 25-year-old member who alleged it was failing to protect his retirement savings against climate change. REST acknowledged in a statement that climate change would lead to catastrophic economic and social consequences and that the phenomenon was a “material, direct and current financial risk” to the superannuation fund. The closely watched case could influence how global funds manage such risks in...

November 3, 2020
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02Nov

US pension funds failing in climate change challenge

Fewer than one-in-five pension funds in North America have committed to achieving net zero carbon emissions across their portfolios by 2050 according to a study that underlines the need to accelerate the fight against climate change in the world’s largest pensions market. Read also Australian pension fund settles landmark climate lawsuit Just 17 per cent of North American pensions funds aim to reach net zero by the middle of the century while a further 8 per cent expect to reach...

November 2, 2020
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02Nov

Switzerland: The road to digital pensions

Martin Eling, director of the Institute of Insurance Economics and professor in insurance management at the University of St Gallen, receives a letter from his pension fund every year. The document describes his situation at retirement age. “The fact that I receive a letter by regular mail once a year is not what I expect in terms of digitisation in 2020,” he says. “There is still little digitisation in the Swiss pension fund sector compared to other sectors”....

November 2, 2020
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02Nov

The savings and domestic investment paradox in Namibia

Namibia has been praised for having one of the largest savings pools in Africa, but the question of where such funds are invested and how they are benefiting Namibians still lingers. An analysis by The Namibian shows that since 2013, the asset base of non-banking institutions has been growing by an average of N$18 billion per year. Non-banking institutions are typically your pension funds, insurance companies, medical aid funds and friendly societies. In Namibia, they are regulated by Namibia Financial...

November 2, 2020
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October 2020

30Oct

How are Japanese corporate funds adapting to global economic challenges

Since 2016, a Japanese publication for institutional investors, AL-IN, has periodical surveyed Japanese corporate pension funds to determine what products best serve them as they confront structural and market changes. The 2018 edition of the survey found pension funds preparing for a domestic economic downturn. Income gains were already slack and pension funds sought bond-related and low-liquidity assets to cover the shortfall. Since then, investment and financial markets have been defined by the U.S. Federal Reserve’s shift in monetary...

October 30, 2020
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30Oct

Equity returns fuel Q3 Canadian pension fund returns

Strong global equity markets continue to augment pension plan returns with Canadian defined benefit plans returning 3.2 percent for the third quarter, according to the Northern Trust Canada Universe. The Northern Trust Canada Universe tracks the performance of Canadian institutional investment plans that subscribe to performance measurement services as part of Northern Trust’s asset service offerings. Overall, equity markets navigated pockets of volatility, closing the quarter in positive territory, while financial markets appeared to shrug off fears perpetuated by...

October 30, 2020
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