November 2019

18Nov

Australian Pension Giants Join Global Push Into Private Credit

Australian pension funds are stepping up direct lending to companies, following their global peers into the booming market for private credit in a hunt for higher-yielding assets. UniSuper, IFM Investors and First State Super -- all giants in the nation’s A$2.9 trillion ($1.9 trillion) retirements savings pool -- are turning to the loan markets, taking on credit mandates or building out their own investment teams. Banks are “starting to exit some of these sectors, which creates a capital need for other...

November 18, 2019
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18Nov

Dutch government tries to avoid cuts to pension payouts

The Dutch government is trying to avert a crisis in the country’s €1.6tn pension industry, with millions of pensioners facing cuts in their retirement income for the first time next year. Trade union and pension fund officials expect the Dutch government to intervene this week with measures to avoid significant cuts to many people’s retirement income by loosening the sector’s strict funding rules, at least temporarily. The Netherlands is widely considered to have one of the world’s best-funded and most generous...

November 18, 2019
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15Nov

Severe $15.8 trillion pension crisis looms worldwide

The U.S., China and other leading economies confront a massive funding gap of $15.8 trillion in 2050 to ensure lifetime financial support for their aging populations. Read also Latin Americans Are Clamoring for Equality — and Democracy That’s according to a report spearheaded by former U.K. Financial Services Authority Chairman Adair Turner for the prestigious Group of 30, comprised of current and former policy makers. Read also US. Pensions Venture Into Risky Corners of the Market in Hunt for Returns “If...

November 15, 2019
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15Nov

The Role DC Plan Investment Menus Play in Participant Savings

A recent analysis by Alight Solutions found retirement plan participants invested in target-date funds (TDFs) are contributing less than those who don’t utilize TDFs. However, a Vanguard report highlighted the extreme growth among these investment funds—93% of plans associated with the advisory firm have adopted TDFs as of 2018. That same year, TDFs accounted for more than one-third of total Vanguard defined contribution (DC) plan assets and over half of total DC plan contributions. TDFs’ domination of the total...

November 15, 2019
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15Nov

UK. Have we reached “peak fintech”?

Fintech has become so ubiquitous you can’t go outside without seeing an advert for a new payments card or a new app for money transfers, pensions or investments. Not only that, the United Kingdom has over 1,600 fintech firms – a number which is forecast to more than double in the next decade – that employ over 75,000 people and have raised more than £12 billion over the last five years. For all the growth, however, the industry’s reach...

November 15, 2019
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15Nov

US. 3 ways retirement plan design can address workforce challenges

Today’s workforce is more diverse than ever before. With five generations of employees spanning a wide array of generations, socioeconomic brackets, educational backgrounds, geographies and job types, employers need to think about how to structure a retirement plan to address the differing needs of workers. A well-structured retirement plan enables workers to build sufficient savings, manage risk, choose appropriate investments, generate lifetime income and save for expenses in retirement. It can also serve as a key differentiator in...

November 15, 2019
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14Nov

Australia. A 24-Year-Old Is Suing Pension Fund for Not Being Green Enough

Mark McVeigh, a 24-year-old environmental scientist from Australia, won’t be able to access his retirement savings until 2055. But, concerned about what the world may look like then, he’s taking action now, suing his A$57 billion ($39 billion) pension fund for not adequately disclosing or assessing the impact of climate change on its investments. The Federal Court battle is shaping up to be a unique test case. Are pension funds in breach of their fiduciary duties by failing to...

November 14, 2019
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14Nov

US. Federal pension fund to include China investments, bucking political pressure

A pension fund for federal workers on Wednesday said it will begin tracking a benchmark that includes China-listed companies, despite strong opposition from a bipartisan group of Senators. The decision by the Federal Retirement Thrift Investment Board (FRTIB), an independent government agency that oversees the Thrift Savings Plan (TSP) retirement fund, comes amid heightened trade tensions with China and efforts to limit the flow of U.S. capital to Chinese companies due to security concerns. It also bucks months of...

November 14, 2019
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14Nov

UK. How the new govt should reform pensions

Auto-enrolment provider the People’s Pension has published five demands on the next government to improve pension saving in the UK. In particular the provider wants the next government to help people on low incomes, reduce the gender pensions gap and to make pensions more transparent. Auto-enrolment has widely been considered a success with 10m more people now saving for retirement than did before the policy was rolled out in late 2012. But in its new manifesto, published today...

November 14, 2019
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14Nov

How Fintech’s Third Wave Will Change How You Bank

The origins of today’s boom in consumer-focused “fintech,” or financial technology, trace back to the global economic meltdown in 2008. Since that disaster struck, the industry has evolved through three discrete phases, says Jason Brown, CEO and cofounder of Tally, a fintech startup, on Balancing The Ledger, Fortune’s show covering the intersection of finance and tech. The first wave met demands resulting from the aftermath of the financial crisis: A need for credit fueled alternative lenders. Online and peer-to-peer...

November 14, 2019
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