Pension Management Archives - Page 46 of 112 - Pension Policy International

25AugAugust 25, 2023

Sustainable funds return to outperformance in reversal of 2022, says report

Sustainable funds beat traditional funds in the first half of 2023, helped in particular by a rebound in growth stocks, according to research from Morgan Stanley. In a report, the bank’s Institute for Sustainable Investing said the median return for sustainable funds in the first half of this year was 6.9% and traditional funds’ 3.8%. Structural market factors were more favourable to sustainable funds’ positioning in the first half of 2023, according to the report. In 2022, a rapid rise in...

August 25, 2023

NewsInvestment, Pension Management, Sustainability

25AugAugust 25, 2023

UK. Interest rates and pensions: good news and bad

The much higher interest rates we have seen in the past few months are clearly bad news for borrowers, especially for younger people trying to buy their first home. And higher long-term interest rates, pushing down the value of bonds, have hit the value of defined contribution (DC) pension pots, even though equities are up. However, it’s not all bad news, particularly not for older Britons. For those with a DC pension who have retired, or nearing retirement, higher bond interest...

August 25, 2023

NewsPension Management, UK

25AugAugust 25, 2023

Global Pension Risk Transfer Monitor: Record H1 Transaction Volumes in UK and US

-The Legal & General Group’s Global Pension Risk Transfer (PRT) businesses – Legal & General Retirement Institutional (LGRI), the United Kingdom’s longest-serving active PRT provider and Legal & General Retirement America (LGRA), a leading provider of pension risk solutions in the United States – today released the latest edition of the Global PRT Monitor, which analyses industry trends and market outlooks in the UK and US. In the US, the Monitor found that last year’s record momentum for US transactions...

August 25, 2023

NewsPension Management, Risk, UK, US

25AugAugust 25, 2023

Investment Option Switching Behaviour and Impact for Pension Fund Members Around the COVID Pandemic

By Adam Butt, Gaurav Khemba, William Lim, Geoff Warren & Shang Wu We study the switching of investment options by defined contribution pension fund members, using a unique dataset provided by a large Australian superannuation fund and spanning the market volatility associated with the COVID-19 pandemic. We find that both the magnitude and direction of switching activity is primarily related to market conditions, but is moderated by member characteristics. Switching activity appears reactive to market movements, with a spike in...

August 25, 2023

Articles, Investment2023, COVID 19, Pension Management

24AugAugust 24, 2023

$1.2m benefits from NSSF remain unclaimed in Kenya

Retirees failed to claim Ksh166.83 million ($1.2 million) in benefits due from the National Social Security Fund (NSSF) by the end of June 2022, the Auditor-General has revealed, with the fund coming under the spotlight over failure to remit the funds to the unclaimed assets authority. The unclaimed benefits were part of accrued payments of Ksh3.6 billion ($24.9 million) at the end of the period, which the state-owned pension fund continually pays out to retirees at the end of their working...

August 24, 2023

NewsKenya, Pension Management, savings

24AugAugust 24, 2023

U.S. PRT sales totaled $16.2 billion in Q2, more than doubling Q1 volume

U.S. pension risk transfer sales totaled $16.2 billion in the second quarter, more than doubling the volume from the previous quarter, a LIMRA survey found. The total volume in the second quarter also exceeded the volume during the same period last year by 31%, according to the survey. The increase in buyout volume from $12.3 billion in the second quarter of 2022 was primarily due to a single transaction. On May 1, Dallas-based AT&T Inc. announced the third-largest U.S. buyout transaction in history,...

August 24, 2023

NewsPension Management, Risk, US

23AugAugust 23, 2023

UN pension fund flags climate risk on ALM and performance

In a nod to headwinds including climate change, evolving demographics, and the future economic outlook the $85.5 billion United Nations Joint Staff Pension Fund, UNJSPF, will use a slightly lower real rate of return on investments to inform its upcoming actuarial valuation. The 2023 ALM study will consider various scenarios for the future, including those incorporating climate risk. The 2023 ALM study will consider various scenarios for the future, including those incorporating climate risk. Under a baseline scenario based on moderate...

August 23, 2023

NewsClimate crisis, Investment, Pension Management

21AugAugust 21, 2023

US. Pension Risk Transfer Deals Hit Record Level in First Half of 2023

In the first half of 2023 plan sponsors completed a record 289 pension-risk transfer transactions totaling $22.4 billion in premiums, according to a report from Aon, the largest PRT adviser. Aon predicted that the full year would see $40 billion in PRT deals, noting that the PRT market typically is busiest in a year’s second half. The report declared: “The pipeline continues to be robust, and we are hearing a lot of interest from plan sponsors. We expect a busy second half...

August 21, 2023

NewsPension Management, Risk, US

21AugAugust 21, 2023

US. Pension funds in their best shape since just before the last two stock-market crashes

How do you lose more than $400 billion and still end up better off than you were before? Easy. You run a pension fund. America's top corporate pension funds have broken into surplus this year for the first time since 2007, just before the global financial crisis, despite disastrous 2022 investment losses on the stock and bond markets. The reason? Even while markets plunged, rocketing inflation has also led to soaring long-term interest rates. And thanks to accounting rules, pension funds can...

August 21, 2023

NewsPension Management, US

18AugAugust 18, 2023

Public Employee Pensions and Municipal Insolvency

By Sean Myers This paper studies how municipal governments jointly manage spending, credit market borrowing, and public employee pensions. I model governments as levered investors who must meet non-defaultable pension obligations and may value government spending more than citizens. I quantify the model using California city-level data, including a new record of fiscal emergencies, tax increases required to maintain essential services. After the financial crisis depleted pension funds, cities engaged in excessive risk-taking: the fiscal emergency option encouraged gambling for...

August 18, 2023

Articles, System Sustainability2023, Funding, Pension Management, Public Pensions, Risk, US

August 2023