May 2021
03May

Ireland. A decent pension system isn’t something we can keep putting off

By John Mercer Ireland is entering a pivotal phase of transformational pensions change that should have a positive impact on individual retirement savers. The good news is that many of the necessary foundations for change are already in place - all that remains is a commitment to prioritising the rollout. The first development has now arrived with the long overdue implementation last week of the EU’s IORP II Directive. This slightly indigestible-sounding piece of legislation will govern the private retirement savings and...

May 3, 2021
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03May

Japan. GPIF looks to study private equity replication

Japan's Government Pension Investment Fund may be mulling changes to an alternatives investment program that's been cautiously deliberate until now. On April 20, the ¥177.7 trillion ($1.63 trillion) Tokyo-based giant made two separate announcements speaking to potential changes: the first was a callout for information from managers of domestic real estate, a sign GPIF could be moving beyond the fund-of-funds platforms it's focused on in recent years to directly hire general partners; the second was a paper exploring ways to...

May 3, 2021
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April 2021
29Apr

UK. FCA mulls online test for high risk investments

The Financial Conduct Authority (FCA) has proposed to force people to take an online test before they can invest in high risk assets, as part of a round up of ideas on curbing risks in the market. In a discussion paper out this morning (April 29) the regulator said it was keen to prevent consumers from accessing high-risk investments that they do not understand. The FCA is concerned that despite its existing marketing restrictions, too many consumers are still investing in...

April 29, 2021
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29Apr

US. Wall Street Bets Bigger on ESG as Sustainability Takes Hold

The greed-is-good ’80s power brokers are long gone, replaced by a generation of investors that at least present themselves as kinder, gentler and more environmentally and socially conscious. Read also NY State Pension Commits to $400 Million in Sustainable Investments But the almighty dollar — maybe a little less than omnipotent now — is still the tool of the trade on Wall Street and the big money players are using their influence to steer companies to a better future with a...

April 29, 2021
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29Apr

Biggest Pension Fund in Denmark Takes a Hit on Its Bond Exposure

Denmark’s biggest pension fund, ATP, lost almost $200 million on its investment portfolio after its exposure to bond markets backfired. “ATP’s current investment strategy is relatively heavily exposed to interest rates, and this makes it sensitive to the rising interest rates that we saw in the first quarter,” Chief Executive Officer Bo Foged said in a statement. The fund, which oversees about $150 billion in assets, is trying to get parliamentary approval to shift into riskier corners of the market after the government...

April 29, 2021
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29Apr

Pension reform throws harsh light on Irish retirement savings

It was fitting somehow that the biggest regulatory reform of Irish pensions was announced with no fanfare. Just a press release issued without notice at the end of the working day – after 5:30pm. Pensions are a difficult sell and, at first sight, this latest landmark reform is an indicator of why. Called IORP II, the acronym is even more impenetrable than its actual title – the EU directive on the activities and supervision of institutions for occupational retirement provision. Essentially, it is...

April 29, 2021
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29Apr

Next-Generation Retirement Plans Will Deliver Customized Retirement Income Solutions

While workplace retirement savings plans have evolved significantly over the past four decades, they still fall far short on delivering retirement income, investment manager PGIM says. But PGIM says that by relying on technology, retirement plans will soon be able to not only deliver retirement income solutions—but to provide customized options. Those personalized solutions could include managed accounts, model portfolios and advice engines, Josh Cohen, PGIM head of institutional defined contribution (DC), tells PLANADVISER. Cohen says he’s optimistic that after years of...

April 29, 2021
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28Apr

Chile’s president will sign into law third drawdown on pensions

Chilean President Sebastian Pinera on Tuesday abandoned his challenge to an opposition-led bill allowing citizens to draw down a third tranche of their pensions, saying he would sign it into law. Earlier in the day, the country’s Constitutional Court rejected a bid by Pinera to block the fresh drawdown on pensions, saying it would not overrule Congress, which gave final approval to the project on Friday. Read also Chile Pension Furor Grows Over Third Round of Withdrawals Pinera had also sought to...

April 28, 2021
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28Apr

A Graying China May Have to Put Off Retirement. Workers Aren’t Happy.

For Meng Shan, a 48-year-old urban management worker in the Chinese city of Nanchang, retirement can’t come soon enough. Read also Multi-pillar pension systems can help EU address the ageing of European societies Mr. Meng, who is the equivalent of a low-level, unarmed law-enforcement official, often has to chase down unlicensed street vendors, a task he finds physically and emotionally taxing. Pay is low. Retirement, even on a meager government pension, would finally offer a break. Read also Morneau Shepell releases the...

April 28, 2021
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28Apr

US. Multiple Employer Pension Plans May Need to Brace Themselves for Lawsuits

Multiple employer pension (MEP) plan sponsors should brace themselves as a potential target for litigation as the plans continue to emerge as a provider-based alternative to single-employer 401(k) plans, according to consulting firm October Three. In a recent article, the firm said that as MEPs begin to accumulate participants and assets, it is “inevitable that plaintiffs’ lawyers will train their sights on MEPs as a fiduciary litigation target” with the “the same sort of fiduciary litigation that has afflicted the...

April 28, 2021
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