October 2022
14Oct

Mercer CFA Institute Global Pension Index 2022

By Mercer & CFA Institute Mercer and the CFA Institute released its 14th annual Mercer CFA Institute Global Pension Index (MCGPI). Iceland’s retirement income system has once again topped the list, with The Netherlands and Denmark retaining second and third places respectively in the rankings. As more employers have stepped away from defined benefit (DB) plans, the study also investigates the challenges and opportunities with the global shift towards defined contribution (DC) plans where individuals bear increased financial responsibility. The MCGPI...

October 14, 2022
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12Oct

Reforma Previsional en Chile: una demanda pendiente

Las AFP, o Administradoras de Fondos de Pensiones, cumplieron 42 años de funcionamiento. Antes existía en nuestro país un sistema de pensiones de reparto (sistema que se financia con los aportes que realizan los trabajadores activos y el Estado, por lo tanto el dinero aportado va a un fondo común con el cual se pagan las prestaciones; este sistema se concibe bajo los principios de solidaridad intergeneracional e intrageneracional), que agrupaba a un conjunto de cajas previsionales. Existía un consenso,...

October 12, 2022
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12Oct

Global financial instability risk hits new heights – IMF

A series of "cascading shocks" have raised the risk of global financial instability to new levels, officials with the International Monetary Fund said Tuesday. "It's difficult to think of a time where uncertainty was so high," Tobias Adrian, director of the IMF's monetary and capital markets department, said at a press briefing on the IMF's October 2022 Global Financial Stability Report. "The kind of risk we are flagging is the highest, outside of acute crisis," Antonio Garcia Pascual, deputy division chief...

October 12, 2022
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12Oct

UK. Bank of England’s Bailey tells pension funds they have 3 days to rebalance

Bank of England Governor Andrew Bailey told pension fund managers to finish rebalancing their positions by Friday when the British central bank is due to end its emergency support programme for the county's fragile bond market. Read also UK. Pension watchdog examining LDI data amid gilts crisis "We have announced that we will be out by the end of this week. We think the rebalancing must be done," Bailey said at an event organised by the Institute of International Finance in...

October 12, 2022
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11Oct

Impact funds grow 40% over last two years, hitting $1 trillion

Impact investing has soared 40% over the past two years, according to a fresh analysis, as more money flows into strategies that actively seek to save the planet and its people. Investor allocations to impact investing, which targets specific environmental, social or governance outcomes instead of just screening for ESG risks, now stands at more than $1 trillion, according to the Global Impact Investing Network. That growth feeds into a maelstrom of discordant views around ESG that have plunged the once...

October 11, 2022
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10Oct

US. Young versus old will define fight over public pensions

The market rout is exposing the vulnerability of U.S. public retirement programs and plannin The firestorm among U.K. pension funds is a wake-up call for their peers across the Atlantic. The end of an era of cheap money is exposing an industry that’s chronically underfunded and overexposed to market turbulence. Imagine a meeting of executives of a typical public pension fund following last quarter’s rout. Chief investment officer: 2022 has been brutal. Sixty percent of our fund is invested in equities, they’re...

October 10, 2022
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07Oct

UK. Bank of England says pension funds were hours from disaster before it intervened

The Bank of England told lawmakers that a number of pension funds were hours from collapse when it decided to intervene in the U.K. long-dated bond market last week. The central bank’s Financial Policy Committee stepped in after a massive sell-off of U.K. government bonds — known as “gilts” — following the new government’s fiscal policy announcements on Sept. 23. The emergency measures included a two-week purchase program for long-dated bonds and the delay of the bank’s planned gilt sales, part...

October 7, 2022
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07Oct

Leadership and sustainability: are they mutually exclusive?

As investors, we find ourselves facing a dramatically changed macroeconomic backdrop and a raft of potentially systemic risks which threaten our collective future. How do we balance our role as stewards of our clients’ money with our obligations as sustainable investors? It is a leader’s primary responsibility to provide direction, pace, and clarity of purpose. Furthermore, a leader must address conflicting priorities, make uncomfortable decisions and be prepared to deal with the consequences. A leader is also ultimately responsible for ensuring...

October 7, 2022
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06Oct

UK. LDI Fallout Will Spur Pension Funds to Seek Life Sector Arrangements

The sudden need for pension funds to put up large amounts of extra collateral due to tumbling gilt prices will lead more UK defined-benefit pension funds to favour pension risk transfer deals with life insurers over liability-driven investment (LDI) arrangements with asset managers, Fitch Ratings says. The rapid drop in gilt prices following the UK’s ‘mini-Budget’ on 23 September led to a sharp increase in collateral requirements from many LDI funds as derivative contracts protecting against lower interest rates moved...

October 6, 2022
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06Oct

Hong Kong Pensions See Record Plunge of 22% – SCMP

The territory’s Mandatory Provision Fund lost $32.98 billion, equating to $7,197.63 per person, the South China Morning Post reported Hong Kong’s pension fund lost 21.5% on average in the first nine months of the year, its worst performance in 22 years, The South China Morning Post reported. The country’s Mandatory Provision Fund (MPF) lost $32.98 billion, equating to $7,197.63 per person, said the report. Analysts attributed the loss to the plunge in stock markets in Hong Kong and on mainland China,...

October 6, 2022
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