September 2017

08Sep

Ageing populations will drag on growth in Asia: IMF chief

 The chief of the International Monetary Fund warned Thursday that ageing populations in key Asian economies will drag on their growth, urging policymakers to step up their response to shifting demographics. Studies show that Asia's population is ageing faster than anywhere else in the world, with Japan forecast to become the first "ultra-aged" country, meaning 28 percent of the population is 65 or over, while a fifth of the people in South Korea are expected to be 65 by 2030. Rapidly...

September 8, 2017
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08Sep

Philippines. SSS selling more properties to fund pension hike

The state-run pension fund Social Security System (SSS) will sell over P3.45 billion in properties to augment its revenues amid the implementation of the pension hike approved by President Rodrigo Duterte. SSS president and chief executive officer Emmanuel F. Dooc said most of the real estate properties to be auctioned off beginning this year until 2022 include “dacióned” and foreclosed condominium units, houses as well as memorial lots. “Most of these properties identified for sale were paid to the SSS through ‘dación pago’ or...

September 8, 2017
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08Sep

Major change. Romania’s second pension pillar could have optional contributions

Under current rules, the contributions are evenly split between the first pension pillar, managed by the state, and the second one, which is managed by private administrators. There is a third pension pillar which is private. “Nobody will dismantle pillar II, nobody will nationalize it, nobody will harm it. (…) It will become optional,” said Tudose in an interview for Digi24. The PM went on to say that the first pension pillar had better results based on the minimum wage, but...

September 8, 2017
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08Sep

Pension reforms in Rwanda

The structural reforms in the Rwandan pensions sector reached its peak on July 19, 2016 with the gazetting of Regulation No. 04/2016 on the registration of voluntary pension schemes and licensing of pension scheme service providers.  The regulations operationalised Law No. 05/2015 of 30/03/2015 governing the organisation of pension schemes. The new law seeks to create a platform for the regulation and supervision on the establishment and management of pension schemes, promoting growth and stability in the sector. It is...

September 8, 2017
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06Sep

Assets at world’s largest pension funds return to growth

Assets under management at the world's largest pension funds increased in value by 6.1% in 2016, representing a total of $15.7 trillion, according to the latest global 300 research from Willis Towers Watson (NASDAQ:WLTW), a leading global advisory, broking and solutions company. The figures for year-end 2016 show a return to growth, following a 3.4% decline in 2015, while cumulative growth in assets since 2011 now stands at 23.4%. The top 20 funds by asset size in the research...

September 6, 2017
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06Sep

More Corruption Allegations Mean Brazil Pension Reform Dies Another Day

Brazil's pension reform, which no one in their right mind believes is passing congress this year, got yet another death sentence on Monday. Lower House Speaker Rodrigo Maia said this month was a no-go for entitlement talks. Maia blamed new allegations of corruption against President Michel Temer. "I think that with another example of foul play that we are hearing about in the media makes it difficult for us to pass any proposals for changes to the constitution until the end of...

September 6, 2017
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06Sep

Asia Pacific: Region’s pension funds grow faster than global average

Assets under management with Asia Pacific's largest pension funds rose by 7% from a year earlier to US$3.7 trillion at the end of 2016, lifting the overall ranking of the region's sovereign and public sector pension funds by asset size, according to the latest global 300 research from Willis Towers Watson, the leading global advisory, broking and solutions company. In a return to growth following a 3.4% decline in 2015, based on asset size, Asia Pacific pension funds outperformed those...

September 6, 2017
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06Sep

Norway pension fund plans big changes for bond portfolio

Norway’s US$990bn sovereign wealth fund, the world’s largest, plans radical changes to its fixed income portfolio by cutting corporate and emerging market bonds from the benchmark index it uses, and shortening maturities. If approved by Norway’s finance ministry, the changes will leave only government bonds in US dollars, euros and British pounds as part of the benchmark, compared with 23 currencies currently. The fund said they are the three most liquid currencies. Norges Bank Investment Management, which manages the fund on...

September 6, 2017
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06Sep

Australia. Pensioners claim rebates on $31 million worth of rates

Canberra pensioners have received rebates on $31 million worth of rates in the past three years, on land worth a cumulative $14.4 billion dollars. More than 18,000 property owners are using the pensioners rebate scheme for rates, figures revealed in an answer to a question on notice in the ACT Legislative Assembly. However the number of applications for rates deferrals on the basis of hardship have doubled on the same time last year, after the ACT government changed the formula for calculating...

September 6, 2017
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05Sep

Market conditions a challenge for institutional asset allocation, says MFS

Institutional investors need to adjust their investment horizons and return targets to take a longer-term view through the market cycle, according to US-based MFS Investment Management (MFS). The toughest challenge for institutional investors such as defined benefit (DB) pension plans is to optimise their risk-adjusted returns in the current market environment, according to Ravi Venkataraman, senior managing director of MFS Institutional Advisors, the institutional unit of MFS. One of the key issues is that these investors have little understanding about how...

September 5, 2017
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