December 2017

19Dec

How South Africa’s Steinhoff, owner of Freedom Furniture, cratered in two days

It looked like Steinhoff International Holdings had reached escape velocity from South Africa's deepening economic gloom: A furniture retailer emulating Ikea's model and global ambitions, built by men with their own compelling rags-to-riches stories. Then the debt-fuelled rocket stalled and came crashing down. From her office overlooking Cape Town's waterfront, Sygnia Investment Management chief executive Magda Wierzycka watched on her computer screen on December 6 as Steinhoff's shares began a two-day plunge that cut the price by 80 per cent and lopped some €10 billion ($15.3 billion) from its market value. Read...

December 19, 2017
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18Dec

Japanese pension fund to shoulder costs of Bank of Japan’s negative rate

Japan’s Government Pension Investment Fund (GPIF), the world’s largest pension fund, has decided to shoulder the costs charged on its deposits under the central bank’s negative rate policy, sources familiar with the matter said on Monday. GPIF entrusts its deposits to a trust bank arm of Mitsubishi Financial Group (8306.T), which had been wearing the cost of a 0.1 percent charge the BOJ imposes on a portion of excess reserves parked with the central bank. The Nikkei newspaper reported earlier that...

December 18, 2017
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18Dec

You should work for longer to get a higher pension – OECD

Workers who stay in employment beyond 66 would defer the full pension but claim higher payments when they finally do retire under a scheme outlined by the OECD. The international think tank warns the Irish pensions system is too "basic" and should offer more flexible payments. These would offer lower payments for those who keep working beyond 66, with the reward that they would receive higher benefits once they are fully retired. 'Pensions at a Glance 2017' said more reforms are needed...

December 18, 2017
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15Dec

Argentina Congress suspends pension reform vote due to protests

Argentina’s lower house on Thursday suspended a vote on President Mauricio Macri’s pension reform plan, after the debate became a shouting match and protesters and police clashed violently outside Congress. The bill, which passed the Senate last month, is crucial for Macri’s efforts to cut the fiscal deficit but has drawn criticism from opposition politicians and labor unions, who say it will hurt retirees and welfare recipients. Before Thursday’s scheduled vote, the country’s top union called a general strike for the...

December 15, 2017
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15Dec

World’s Biggest Pension Fund Says AI Will Replace Asset Managers

Hiromichi Mizuno was named chief investment officer of Japan’s Government Pension Investment Fund, the world’s biggest manager of retirement savings, in 2014. He has since led a push to increase equity holdings and advocated for incorporating ESG, or environmental, social and governance, factors into investing. Question: What are the biggest changes in the investment world you see coming in the next five to 10 years? Mizuno: Adoption of technology, including AI and ESG integration into all asset classes. I believe artificial intelligence...

December 15, 2017
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15Dec

US. Fees Rise for Underfunded Pensions

The largest pension plans held by S&P 500 companies face a $348 billion funding gap. As a result, they’re paying higher annual fees to the U.S. Pension Benefit Guaranty Corp., the government agency that backstops plans. “There’s increased awareness that an underfunded plan imposes risk on employees, it imposes risk on shareholders, and it’s getting more expensive,” says Olivia Mitchell, a professor at the University of Pennsylvania’s Wharton School and executive director of the Pension Research Council. The fees, called variable-rate...

December 15, 2017
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15Dec

What To Know Before Purchasing Cryptocurrencies With Retirement Funds

With the value of Bitcoins and many other cryptocurrencies flying high in 2017, many investors have looked to take advantage of this trend and own cryptocurrencies in tax-advantaged retirement plans, such as a Self-Directed IRA or Solo 401(k) Plan.  This article will explore the main points an investor should know before using retirement funds to buy cryptocurrencies. What is a Cryptocurrency? Cryptocurrency refers to a decentralized digital currency that employs principles of cryptography (communication that is secure from view of third parties)...

December 15, 2017
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14Dec

EU pensions have insufficient assets to cover liabilities – Watchdog

European Union pension providers on the whole do not have enough assets to cover their liabilities, the European Union’s insurance and pension watchdog said on Wednesday. The European Insurance and Occupational Pensions Authority (EIOPA) published aggregated results of this year’s stress test of 195 institutions that provide pensions. The results showed shortfalls of between 349 billion euros ($411 billion) and 702 billion euros, levels that could harm the real economy, EIOPA said. Source: Reuters

December 14, 2017
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14Dec

Russia’s central bank to form biggest non-state pension fund with $9 billion merger: sources

Russia’s central bank is preparing to merge three pension funds of bailed out bank Otkritie to create the biggest non-state pension fund in Russia, while guaranteeing payouts to their 7.7 million members, three people with knowledge of the matter said. The funds had been indirectly controlled by Otkritie Holding, the former parent of Otkritie bank. Once Russia’s largest private lender, it was rescued in August by the central bank, which was then lumbered with the three pension funds too. The Russian...

December 14, 2017
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14Dec

South African State Pension Fund Lost 0.6% on Steinhoff Plunge

The South African state pension fund said it lost the equivalent of 0.6 percent of its entire portfolio because of the collapse in Steinhoff International Holdings NV’s share price and will insist on representation on a board committee investigating irregularities. The Public Investment Corp. and the Government Employees Pension Fund remain “deeply concerned about Steinhoff,” the entities said in a statement emailed Wednesday from Pretoria. “Recent developments point to serious governance challenges.” In addition to board representation, the PIC and the GEPF will insist on...

December 14, 2017
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