December 2017

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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13Dec

Japan’s public pension fund to adopt performance-based fees

The biggest public pension fund in the world will change the way it pays fees to investment managers in fiscal 2018, with an eye toward creating an incentive for them to boost returns. Japan's Government Pension Investment Fund, or GPIF, currently pays fees based on the amount of assets overseen by each managing firm -- applying a predetermined percentage rate to the value of assets under management. Actively managed funds, in which investment managers pick and choose assets to achieve...

December 13, 2017
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13Dec

Investigation launched into largest corporate scandal in South Africa’s history

An investigation has been launched by the government into the largest corporate scandal in South Africa's history, it was announced on Tuesday. The investigation will be led by the Department of Trade and Industry (DTI) and its affiliated organization the Companies and Intellectual Property Commission (CIPC), DTI spokesperson Sidwell Medupe said. The DTI and CIPC have noted with great concern allegations of governance failures and financial irregularities at South African retailer Steinhoff, which led to the resignation of its Chief Executive...

December 13, 2017
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13Dec

Poverty risk high for Swiss pensioners despite high spending

A recent OECD study, which looks at retirement, shows the relatively large amount spent on pensioners in Switzerland. Switzerland consumes 11% of its GDP on retirees, compared to 9% across OECD nations. Despite this high spending, the risk of poverty is higher in Switzerland than across the OECD. According to the organisation, 19% of those over 64 in Switzerland are at risk of poverty, compared to an OECD average of 13%. Read more @Le News

December 13, 2017
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12Dec

UK. FCA cracks down on steelworker pensions advisers

Three financial advice firms have stopped giving advice to steelworkers on transferring pension savings from a 15 billion pounds pot into other schemes, the Financial Conduct Authority said on Monday. The financial services industry watchdog has visited seven financial advisers and asked four more for information. “As a result of this work three firms have stopped advising consumers on pension transfers,” the FCA said in a statement. “The FCA plans to visit a further six firms this week.” Read more @Reuters

December 12, 2017
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