February 2025
28Feb

US. Public pension funds allocate more to fixed income, lower return assumptions — NCPERS

Public pension funds are increasing allocations to fixed income and continuing to lower their investment assumptions, according to a study from the National Conference on Public Employees Retirement Systems. The study, which reflects data from 201 U.S. public pension funds that collectively oversee more than $3 trillion in assets, shows those plans that reported data as of June 30 had an average investment return of 9.5%, and the trend toward lower investment return assumptions continues with an average discount rate...

February 28, 2025
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24Feb

Pension funds boost contributions amid rising risks

Pension funds are bracing for heightened risks in 2025, with 74% of senior executives planning to increase contributions and 73% raising budgets for scenario modelling, according to Ortec Finance, a provider of technology and solutions for risk and return management. Despite 65% of executives reporting an improved funded status, many remain cautious about liquidity and long-term sustainability. The survey, which covered pension funds managing $1.451 trillion in assets across the UK, US, Netherlands, Canada, and Nordics, found that 84% expect...

February 24, 2025
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20Feb

Why trustees must keep ahead of greenwashing risks

‘Greenwashing’ by asset managers and other entities can leave trustees exposed to legal, regulatory and reputational risk, a law firm has warned. It comes after some high-profile campaigns have highlighted investments into fossil fuel companies made by asset managers and pension providers, despite claims of low carbon and sustainable approaches. Most recently, the Make My Money Matter campaign highlighted 12 of the UK’s biggest pension providers and claimed there was a “persistent failure” across the industry to address climate change concerns. Kate Granville Smith,...

February 20, 2025
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19Feb

CPPIB becomes major shareholder of Spanish Group HBX in its stock market debut

HBX Group has successfully gone public on the Spanish stock exchanges, marking the largest IPO in Europe this year and the first listing of a British company in Spain since Brexit. The transaction, valued at approximately €3 billion, underscores the company’s position as a key player in the travel technology sector. The transaction has included the completion of an initial put and subscription offer for shares by HBX Group’s major shareholders (CPPIB and vehicles controlled by funds managed or advised...

February 19, 2025
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14Feb

Politics Before Pensions: How New ESG Rules Expose Public Pension System Vulnerabilities

By Danilo Risteski As some of the largest institutional investors in the United States, public pension funds wield considerable power over investment decisions. A recent trend highlights this extraordinary power: state pension funds have started exploiting their retirees’ pensions to force investment companies to invest in accordance with their respective states’ political priorities. Nowhere is this trend more obvious than in the environmental, social, and governance field. On one hand, states like Maine have passed legislation prohibiting public pension funds...

February 14, 2025
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14Feb

U.S. ETF assets reach record $10.7 trillion in January

Assets in the U.S. exchange-traded fund industry reached a new record of about $10.7 trillion at the end of January, surpassing the prior record of $10.6 trillion at the end of November, according to a Feb. 13 news release by independent research and consultancy firm ETFGI. In January, the U.S. ETF industry amassed net inflows of $90.3 billion, the highest figure ever recorded, well ahead of the previous monthly record of $78.8 billion in January 2018. Vanguard Group led with the highest...

February 14, 2025
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14Feb

Canada. CPP Investments nearing $700 billion

The Canada Pension Plan Investment Board (CPP Investments) reported $699.6 billion in net assets, as of Dec. 31, 2024. The figure represents a $24.5-billion rise relative to the previous quarter. The pension fund manager earned $26 billion in net income, and delivered $1.5 billion in member payments. “Returns were strong this quarter,” said John Graham, president & CEO of CPP Investments in a news release. “Our investment teams were very active with more than 40 transactions signed or closed in...

February 14, 2025
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10Feb

Pension funds foresee increased risk to assets and liabilities in 2025

The majority of pension fund executives expect their plans’ risk profile to increase in 2025, according to a survey conducted by Ortec Finance, a provider of risk and return management solutions for pension funds. The research shows that 77% of pension fund executives surveyed expect the coming year to bring an elevated risk profile. The survey targeted senior pension fund executives in the UK, the US, the Netherlands, Canada and the Nordics whose funds collectively manage $1.451trn (€1.399trn) in assets. The risks were...

February 10, 2025
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07Feb

2025 Asset Allocation Return & Risk Assumptions

By Wilshire Wilshire’s long-term inflation forecast is 2.35%, which is up 10 basis points from last year’s assumption. Our practice since 2003 has been to derive our inflation forecast by observing the market’s breakeven inflation rate – the spread between the yield on a 10-year Treasury and the real yield on a similar maturity Treasury Inflation Protected Security (TIPS). During periods of market stress, TIPS pricing may be affected by liquidity demands or a high level of inflation uncertainty, as...

February 7, 2025
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07Feb

UK. Pensions industry could save members ‘millions’ in private market fees, report finds

The UK workplace pension industry could have the opportunity to save "hundreds of millions of pounds" for savers when it comes to investing in private markets, a report from The People’s Pension has suggested. The paper found that while there are nearly £1bn in potential fee savings available, no master trust currently has the scale to fully take advantage, which aligns with the government's own recent calculations, which suggested that investing in private markets delivers little additional value at current...

February 7, 2025
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