May 2020
11May

US. Public Pensions Could Suffer for Years from Pandemic Losses

US public pension plan sponsors and administrators are likely entering a period of fiscal stress, and rising pension obligations caused by the sudden pandemic-induced recession are expected to be felt for years by US state and local governments, according to a report from S&P Global Ratings. S&P said US public pension funds in aggregate lost approximately $850 billion during the first quarter of the year, and that they would need to rebound sharply during the second quarter to maintain...

May 11, 2020
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11May

Australia. COVID-19 has killed 12% superannuation

For years MacroBusiness has argued that Australia’s superannuation guarantee (SG) should not be raised from the current level of 9.5% to 12%. Our arguments against lifting the SG centre around four key issues. First, superannuation concessions are grossly inequitable and favour high income earners. This inequity is illustrated clearly by the below Australian Treasury chart, which shows that the top 1% of earners will receive roughly 14-times the taxpayer contributions to their personal superannuation accounts as the bottom 10%...

May 11, 2020
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08May

J.P. COVID impact on markets: research update

By Michael Cembales The first table itemizes monetary and fiscal stimulus unleashed by the Federal Reserve and other Central Banks in recent weeks, measured as Central Bank liquidity provisions, new fiscal stimulus programs and rate cuts. For context, new fiscal stimulus and total fiscal deficits in the US are roughly double the levels seen in 2008-2009, and the US fiscal deficit we project for 2020 of 15%-18% is only matched by deficits seen at the height of WWII in 1942-1943. ...

May 8, 2020
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08May

Pandemic Blots One Year’s Worth of Gains from Canadian Plans

The coronavirus pandemic has wiped about a year’s worth of gains from Canadian pension plans, BNY Mellon said Monday. Corporate, public, and university retirement funds lost a median 7.23% in the first quarter ending in March, according to the financial services firm. Over the past 12 months, marked by strong advances up until 2020, that represented a 1.13% loss. But pensions overall still gained about 7.24% annually over the past decade. Results from the report were drawn from...

May 8, 2020
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07May

Swedish pension giant joins risk transfer market

Alecta, a Swedish pension fund manager, has announced it will be working alongside Dutch healthcare pension fund PGGM in the risk transfer market, taking 30% of deals PGGM invests in. PGGM is the largest single investor in significant risk transfer deals, growing a €5bn book which references €70bn of portfolios, and advocating to regulators and others for the benefits of the market.It is one of the only pension funds regularly active as a direct investor in... Read More @Global Capital

May 7, 2020
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07May

S. Korea’s NPS joins int’l buyout of Portuguese toll roads operator Brisa

South Korea’s National Pension Service (NPS) joined Dutch pension manager APG Asset Management and Swiss Life Asset Managers for multi-billion dollar acquisition of a combined 81.1 percent stake in Portugal’s leading toll roads operator Brisa – Auto-Estradas de Portugal (Brisa). The consortium in the biggest-ever Portuguese buyout amidst an ongoing virus pandemic will assume 40.55 percent from London-based Arcus European Infrastructure Fund 1 (Arcus) and another 40.55 percent from Portuguese conglomerate Jose de Mello Group (JdM), according to...

May 7, 2020
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07May

Swedish pension giant joins risk transfer market

Alecta, a Swedish pension fund manager, has announced it will be working alongside Dutch healthcare pension fund PGGM in the risk transfer market, taking 30% of deals PGGM invests in. PGGM is the largest single investor in significant risk transfer deals, growing a €5bn book which references €70bn of portfolios, and advocating to regulators and others for the benefits of the market.It is one of the only pension funds regularly active as a direct investor in... Read More @Global Capital

May 7, 2020
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07May

S. Korea’s NPS joins int’l buyout of Portuguese toll roads operator Brisa

South Korea’s National Pension Service (NPS) joined Dutch pension manager APG Asset Management and Swiss Life Asset Managers for multi-billion dollar acquisition of a combined 81.1 percent stake in Portugal’s leading toll roads operator Brisa – Auto-Estradas de Portugal (Brisa). The consortium in the biggest-ever Portuguese buyout amidst an ongoing virus pandemic will assume 40.55 percent from London-based Arcus European Infrastructure Fund 1 (Arcus) and another 40.55 percent from Portuguese conglomerate Jose de Mello Group (JdM), according to industry...

May 7, 2020
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05May

White House Makes Appointments That Could Impact Pension Fund Decision to Invest in China

The White House on Monday named three nominees to sit on a board that oversees federal employee pension funds, a move that could see the reversal of a decision to allow one of the funds to invest in Chinese companies under scrutiny from Washington. If confirmed by the Senate, the three individuals would sit on the Federal Retirement Thrift Investment Board (FRTIB) which administers the Thrift Savings Plan (TSP), a retirement savings fund similar to a 401(k) for federal...

May 5, 2020
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01May

ATP, PFA assets plummet as coronavirus hits

ATP, Hilleroed, Denmark, posted a -26% investment return for the three months ended March 31, as market fluctuations hit international equities and inflation-related securities. An update Thursday said the pension fund's return was equal to a 24.7 billion Danish kroner ($3.6 billion) loss, compared with a gain of 16.8 billion kroner for the three months ended March 31, 2019. The fourth quarter 2019 return was not available. Assets increased 0.4% to 889.5 billion kroner in the three months ended...

May 1, 2020
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