July 2022
22Jul

Defined Benefit Risk Phase 2: Expert Interviews

By David G. Pitts Over the course of 2020 and 2021, the research team interviewed the following subjects: • Chief Financial Officer • Chief Risk Officer • Multiemployer Plan FSA • Public Plan FSA • Investment Consultant / FSA • Outsourced Chief Investment Officer / FSA • Canadian FSA / CERA Each interview lasted approximately one hour. All interviewees are senior practitioners in the defined benefit space. The interview notes include a faithful representation of the ideas discussed, with some changes in minor details to ensure the anonymity of the respondent. Executive...

July 22, 2022
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June 2022
24Jun

Greening Pensions: A Behavioural Perspective

By Alice Farrell, Kristina Londakova, Izzy Brennan, Jake Reynolds & Toby Park Through their pensions, the vast majority of people in the UK are investors, with pension pots collectively amounting to over £2.6 trillion.1 Investing a greater portion of this money sustainably - i.e. in businesses who have positive or neutral impacts on the environment and green technologies – could significantly accelerate our transition to a low-carbon society. While 68% of people say they would like their investments to be responsible...

June 24, 2022
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17Jun

LGBT CEOs and stock returns: Diagnosing rainbow ceilings and cliffs

By Savva Shanaev, Arina Skorochodova & Mikhail Vasenin This study is the first to investigate the implications of lesbian, gay, bisexual, and transgender chief executive officers (LGBT CEOs) for stock performance, using an exhaustive sample of 26 LGBT publicly listed company CEOs since 2000 to document statistically and economically significant financial outperformance of LGBT-led firms. Stocks of companies with openly LGBT CEOs generate a monthly alpha of 0.69%-1.08%, robust to portfolio weighting schemes, estimation frequency, multi-factor asset-pricing models, factor multicollinearity,...

June 17, 2022
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03Jun

Asset Allocation: From Theory to Practice and Beyond

By William Kinlaw, Mark P. Kritzman, David Turkington & Harry M. Markowitz Discover a masterful exploration of the fallacies and challenges of asset allocation In Asset Allocation: From Theory to Practice and Beyond—the newly and substantially revised Second Edition of A Practitioner’s Guide to Asset Allocation—accomplished finance professionals William Kinlaw, Mark P. Kritzman, and David Turkington deliver a robust and insightful exploration of the core tenets of asset allocation. Drawing on their experience working with hundreds of the world’s largest and most...

June 3, 2022
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May 2022
12May

Pensions and the green transition: policy and political issues at stake

By David Natali, Michele Raitano & Giulia Valenti Pension policy has gone through an intense period of reform over the past few decades. However, further changes are likely to take place in the near future. Major global trends, not only population ageing but also globalisation, technological innovation and climate change, are going to shape socioeconomic and labour organisation and influence macroeconomic trends and will thus have an impact on the adequacy and long-term sustainability of pension policy. This paper focuses on...

May 12, 2022
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12May

The DC Future Book 2021: In Association With Columbia Threadneedle Investments

By Pension Police Institute & Investments Columbia Threadneedle Columbia Threadneedle Investments has supported The DC Future Book since its inaugural publication six years ago. We are pleased to see that it has become the foremost longitudinal study of the UK Defined Contribution (DC) market we envisaged it to be. This is a special edition indeed – it is the first time that the Pensions Policy Institute has been able to track DC market activity against the backdrop of a major crisis....

May 12, 2022
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05May

Effect of Pensions on the Capital Market

By Sang Wook NAM This study analyzes the impact of public and private pensions on the capital market to examine the empirical arguments for the need for pension development. To this end, we conduct an empirical analysis of the effect of pension assets on the capital markets in 17 OECD member countries. The methods comprise static and dynamic panel analyses, which are conducted in parallel based on panel data on the stock and bond markets and the asset sizes of...

May 5, 2022
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April 2022

The New Corporate Governance
28Apr

The New Corporate Governance

By Oliver D. Hart & Luigi Zingales In the last few years, there has been a dramatic increase in shareholder engagement on environmental and social issues. In some cases shareholders are pushing companies to take actions that may reduce market value. It is hard to understand this behavior using the dominant corporate governance paradigm based on shareholder value maximization. We explain how jurisprudence has sustained this criterion in spite of its economic weaknesses. To overcome these weaknesses we propose the...

April 28, 2022
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Environmental, Social and Governance Considerations in Pension Plans
28Apr

Environmental, Social and Governance Considerations in Pension Plans

By Paul Williams & Elizabeth Harker Speaking at the United Nations Climate Change Conference ("COP26") in October 2021, the UK Secretary of State for Work and Pensions, Thérèse Coffey, said that pension schemes can become a "superpower" in fighting climate change and propelling the world to net zero. But to what extent does the legal landscape within which pension schemes operate allow them to perform this role, and indeed to what extent should they be performing this role? Here in the...

April 28, 2022
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28Apr

Global Pension Finance Watch: First quarter 2022

By Nathan Pavlik & David Finn The sharp increase in discount rates drove positive first quarter pension index results for all regions. Asset returns were negative for all regions except Brazil for the quarter which partially offset the liability gains. Inflationary impact were most pronounced in the UK where plans provide annual pension increases based in inflationary indicators. The overall impact of these changes resulted in positive pension index returns for all markets during the first quarter. While it is always...

April 28, 2022
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