October 2020

15Oct

US. Real estate investments cost NYC pension funds $370M

In a big investment portfolio, some part of it will inevitably underperform. For the city’s biggest pension fund, that part has been private equity real estate. The New York City Employees’ Retirement System ramped up its exposure to that category, only to see it underperform the stock market by $260 million and rack up at least $110 million in fees between 2016 and 2019, New York Focus reported. During those years, the fund increased its portfolio in private equity...

October 15, 2020
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09Oct

Japan. An Unconventional Pension Fund Bets on Volatility’s Return

A small Japanese pension fund known for its aggressive bets on alternative investments is changing tack. The West Japan Machinery Pension Fund has an unconventional strategy with 90% of assets invested in the likes of loans and private equity. While still committed to alternatives and disavowing sovereign bonds, it has been pivoting away from low-liquidity assets such as PE and infrastructure debt, said chief investment officer Yoshisuke Kiguchi. “Instead, we have recently increased convertible bond arbitrage quite a lot...

October 9, 2020
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08Oct

EU seeks to boost eurozone with green bond program

The European Union wants to lift the GDP of the eurozone economy by 3% by 2027 through borrowing under a new green and social bond program agreed to in September, attendees heard Tuesday during a webinar. Read also Latin America’s new poor The recovery program, which will launch with a €100 billion ($117.2 billion) SURE bond program, is a "game changer" for investors from United States and Asia because it will help to establish a euro-denominated green and social...

October 8, 2020
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05Oct

Lengthy era of rock-bottom interest rates leaving its mark on U.S. economy

Even before the Federal Reserve said it would keep interest rates near zero for at least three more years, Dan Bienvenue knew he had a battle on his hands. As chief investment officer of the nearly $400 billion California Public Employees’ Retirement System (CalPERS), which provides benefits for 2 million current and future retirees, Bienvenue must earn an annual return of at least 7 percent. That’s not easy when the safe investments that pension funds usually rely on are...

October 5, 2020
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02Oct

The Essential 2020 Guide to Unlocking the Potential of Reverse Mortgages: Modern Retirement Planning

By Michael Malyszko A must-read book by reverse mortgage expert, Michael Malyszko, The Essential Guide to Un-locking the Potential of Reverse Mortgages breaks down the fundamentals of reverse mortgages, giving homeowners the knowledge they need to leverage the full potential of this incredible financial planning tool. In recent years, reverse mortgages have become even more common as an increasing number of homeowners have discovered that reverse mortgages are a valid retire-ment strategy, offering flexibility that few other loans and...

October 2, 2020
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01Oct

US. Trump Plan Would Restrict Retirement Plans from Sustainable Investments: Viewpoint

Interest in sustainable investing is soaring, as more people become convinced that making a positive impact can be profitable as well as good for the planet and society. Unfortunately, the Labor Department doesn’t think these investments belong in your 401(k). In June, the federal regulator proposed a rule that would restrict workplace retirement plans from investments that include environmental, social and governance considerations. Popularly known as ESG or socially responsible investing, this approach considers the sustainability of a company’s...

October 1, 2020
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September 2020

29Sep

U.S. pension funds sue Allianz after $4 bln in coronavirus losses

Pension funds for truckers, teachers and subway workers have lodged lawsuits in the United States against Germany's Allianz, one of the world's top asset managers, for failing to safeguard their investments during the coronavirus market meltdown. Read also US. Trump Plan Would Restrict Retirement Plans from Sustainable Investments: Viewpoint Market panic around the virus that resulted in billions in losses earlier this year scarred many investors, but no other top-tier asset manager is facing such a large number of lawsuits...

September 29, 2020
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29Sep

Pension Fund Administrators in Nigeria and their scorecard

Despite the disruptions caused by the COVID-19 pandemic, which affected most aspects of the Nigerian economy, Pension Fund Administrators (PFAs) in Nigeria performed satisfactorily, as they recorded positive returns between January and August 2020. According to the report from Pension Nigeria, no PFA had negative returns on investment (ROI) during the period under review, indicating that all PFAs for Fund I, II, III, and IV recorded positive returns. This is quite impressive, given that the pandemic had impacted most...

September 29, 2020
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28Sep

Canada’s pension fund plans to invest a third of funds in emerging markets by 2025. India is a major component

Canada’s massive pension fund plans to invest up to a third of its funds in emerging markets over the next five years and India is an important destination, the fund’s Asia Pacific head, Suyi Kim, told CNBC.Domestic consumption, technology and increasing demand for infrastructure to support the growth underpin many of the investment themes and opportunities that CPPIB looks at in India, Kim said.The growth rate of South Asia’s largest economy has taken a hit over the last few years...

September 28, 2020
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25Sep

US. Pensions Have Been Shunning Stocks at Their Own Peril

With the Fed signaling low interest rates for the foreseeable future, pension funds weigh bigger bets on equities Read also US. Pension Buyouts a Relative Bargain, Says Mercer Pension funds and endowments have been shifting away from the U.S. stock market for years. Some are now reconsidering that decision. Read also JPMorgan-backed Brazil fintech plans to expand in U.S., Mexico Individual investors, including younger traders using apps like Robinhood, have been playing a bigger role in the market lately. They’ve been buying...

September 25, 2020
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