September 2018

24Sep

UK. Small firms exposed to pension fund risks, warns Goldman Sachs

The funding positions of company pension pots improved last year but smaller firms are not managing their risk exposures well, according to Goldman Sachs. The US investment bank’s annual survey of FTSE 350 pension schemes found many were “in the best position they have been in for a long time” after funding levels improved. However, it cautioned smaller schemes demonstrated more volatile funding outcomes due to “a less robust” approach to risk management. Goldman Sachs found the very smallest schemes were...

September 24, 2018
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24Sep

Russia: 3.000 demonstrators in Moscow against the reform of retirement pensions

Three thousand or so people marched Saturday in Moscow against the unpopular project of the government to increase the age of retirement, which causes a slingshot unusual in Russia. Parade participants on a large avenue in the centre of the Russian capital, waving placards bearing the image of members of the ruling party, United Russia, of which Prime minister Dmitry Medvedev, accompanied by slogans such as “Enemy of the people” or “Shame”. “About 3,000 people have taken part” in the protest,...

September 24, 2018
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24Sep

APG’s sustainable investments grow €2.2bn

Dutch pension provider APG has seen its investments in sustainable real estate and infrastructure grow €1.3bn and €900m in one year. According to APG, which manages €482bn in pension assets, the growth is proof sustainable investments yield long-term returns with the sustainable real estate portfolio grew to €21.7bn and infrastructure to €2.3bn. This also contributes to the objectives of pension scheme APB, APG’s largest client, who invested €58bn in business that helps meet United Nation’s sustainable development goals by 2020. APG uses...

September 24, 2018
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24Sep

Ageing population ‘will push up prices’, warns Deutsche Bank

Rising prices could be here to stay as the ageing population across much of the world pushes them up, analysts at Deutsche Bank have warned. A shrinking working-age population combined with demand from pensioners risks pushing up the cost of production, setting the scene for decades of pressure on living standards. Governments are likely to succumb to the temptation to inflate away debts, as that smaller workforce will otherwise struggle to pay off the mountains of borrowing being built up now. “While...

September 24, 2018
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21Sep

US. Lawsuit against Brown University retirement plan proceeds

Three former and current University employees can move forward with some of the claims in a class action lawsuit alleging that the University mishandled their retirement funds, according to Chief Judge William Smith in a July order from the U.S. District Court for the District of Rhode Island. “Our clients (stepped) forward to file suit because they thought it would advance the interests of their fellow employees who participate in the retirement plan,” said Todd Collins, one of the lawyers...

September 21, 2018
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21Sep

Emerging markets could actually benefit from the trade war, says pension fund

The U.S.-China trade war could force emerging markets to implement structural reforms that would benefit long-term investors, according to Suyi Kim from the Canada Pension Plan Investment Board. "We believe in the long-term expected returns of emerging markets," she said at the World Economic Forum in Tianjin. Tit-for-tat trade tariffs between the United States and China are widely expected to hit developing countries hard as they rely heavily on exports to fuel growth. But there's one bright spot, according...

September 21, 2018
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21Sep

How Does Saving For Retirement Affect Low-Income Workers?

There’s little disagreement that saving for retirement is a good thing. But could helping poor people build savings through a retirement plan reduce or eliminate their eligibility for social assistance? This important question has come up recently because state- or city-sponsored retirement plans are, or soon will be, automatically enrolling workers, some of whom have low incomes. California, Connecticut, Illinois, Maryland, and Oregon, as well as Seattle, offer retirement savings programs for private sector workers who do not have...

September 21, 2018
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20Sep

UK. Pension funds shifting towards more complex investment portfolios

The majority of institutional investors like pension funds are increasing overhauling their portfolios in search of greater returns, with two-thirds having added at least one new asset class over the last three years. That is according to a global study of investors with around £6trn in assets by consultancy firm bfinance, which finds that private debt, infrastructure and real estate are among the most popular new additions to portfolios. Almost half of investors have increased their allocations to private markets, although...

September 20, 2018
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20Sep

Australia. Superannuation’s multimillion-dollar problem

Very few superannuation systems the world over can hold a candle to Australia’s, but one key flaw leaving certain Australians at risk of poverty has persisted through its 25-year history. The average Australian can expect to retire with hundreds of thousands of dollars in savings, taking pressure off the government pension and improving retirees’ quality of life – but it’s most effective for Australians who work full time for their entire adulthood. Taking a career break is punished severely by the...

September 20, 2018
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20Sep

UK. Industry demands mandatory pension dashboard

More than 20 pension providers and administrators are demanding ‘a firm stance on compulsion’ from the government on the pension dashboard after coming together to discuss the project. In the meeting hosted yesterday (18 September) by fintech provider Origo, providers agreed the government will need to legislate to "ensure the whole industry is fully compelled to participate". The plan behind the pension dashboard, which is due to launch in 2019, is to create the technology to allow savers to see all...

September 20, 2018
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