Returns Archives - Pension Policy International

05MarMarch 5, 2024

US. Pension Funds Are Tapping Affordable Housing for High Returns — Not the Social Benefits

While affordable multi-family housing has become a key part of some pension funds’ real estate allocations, most of these funds are selecting investments that don’t have long term affordability in mind. This is according to new research from the Federal Reserve Bank of New York. The FRBNY has embarked on a research project to explore investments by institutions, specifically state pension plans, in multifamily housing. This is the second in a series of papers on the subject. The first, “Alternative...

March 5, 2024

NewsInvestment, Returns, US

23FebFebruary 23, 2024

Canada. CDPQ posts 7.2% return in 2023

Caisse de Depot et Placement du Quebec, Montreal, delivered a net return of 7.2% in calendar year 2023, slightly below the benchmark return of 7.3%. For the five-year period, CDPQ returned an annualized 6.4%, above the 5.9% of the benchmark, said a Feb. 22 release. Over the 10-year period, the annualized return was 7.4%, compared with 6.5% for the benchmark. As of Dec. 31, CDPQ's net assets totaled C$434 billion ($327.4 billion), up from C$402 billion at the end of 2022. In...

February 23, 2024

NewsCanada, Investment, Returns

08FebFebruary 8, 2024

Kenya. Pension returns trail inflation rate for the second year

Pension contributors are staring at a major erosion of their savings after annual returns on investments in 2023 by pension funds shrunk below the rate of inflation. A periodic pension industry survey done by fund administrator Zamara shows that pension schemes made a weighted average return of 1.4 percent in 2023, which was lower than the 1.7 percent return recorded in 2022. At the same time, Kenya’s average inflation stood at 7.7 percent in 2023, meaning that the average saver lost...

February 8, 2024

News2024, Inflation, Kenya, Pension Management, Returns

30JanJanuary 30, 2024

South Korea. NPS Achieved Impressive 9.88% Annual Return Last Year, Approaching 1 Quadrillion Won Mark

As of November last year, the National Pension Fund’s (NPS) rate of return approached double digits. Despite concerns about a global economic downturn, the strength of the stock market resulted in the evaluation of the fund’s assets surging to nearly 1 quadrillion won. The NPS Investment Management disclosed on Jan. 29 that the cumulative rate of return for the fund until November last year stood at 9.88 percent. This figure represents a notable increase from the cumulative return of 6.75...

January 30, 2024

NewsPension Management, Returns, South Korea

12JanJanuary 12, 2024

The State of Pensions 2023: Year End Update

By Anthony Randazzo & Jonathan Moddy In 2023, U.S. public pension funds remain fragile. According to Equable Institute’sState of Pensions 2023 report, state and municipal retirement systems are on track to miss their investment targets and are unlikely to see meaningful improvements in their unfunded liabilities or funded ratio in 2023. In this post, we will look at pension funding trends and detail the health of pension funds in an increasingly unpredictable market and where risky investments are more popular than ever....

January 12, 2024

Books, Books, Reports, System Characterization2024, Funding, Investment, Returns

13DecDecember 13, 2023

Developed Nations’ Public Pension Plans Dropped By Average of 15% in 2022

How bad was 2022’s market slide that hurt pension public pension plans in developed nations? Bad: They showed losses of about 15% on average, according to figures from an annual study by the Organization for Economic Co-operation and Development. The arrival of higher interest rates and inflation, as the world struggled out of the COVID-19 pandemic, led to significant losses in asset values in OECD countries, the report showed. Losses ranged from 21% in the U.K. and 18% in the Netherlands to 9% in...

December 13, 2023

NewsInvestment, Pension Management, Returns

14NovNovember 14, 2023

Austrian pension funds to lose 7.5% in asset value due to climate risks

The value of assets in the portfolios of Austrian pension funds would decrease by approximately 7.5% in the event of an unexpected increase of the price of CO2 emissions through additional taxes to make fossil fuel investments less attractive, according to a stress test conducted this year by the by Austria’s Financial Market Authority (FMA). This is an improvement from last year’s test showing a 10% loss in asset value. Read also German government drafts law to reform second pillar pension system This year’s...

November 14, 2023

NewsAustria, ESG, Returns

30OctOctober 30, 2023

Korea’s national pension fund logs over 10% return through October

Korea's state pension fund registered some 10 percent yield through October on the back of good performance in its investments in local and overseas stocks, its operator said Monday. The National Pension Service (NPS) said the national pension fund logged a 10.27 percent return in the January-October period, with the value of its assets under management reaching 997.38 trillion won ($739 billion) as of end-October. Last year, the pension fund logged its worst return at minus 8.28 percent amid jitters in...

October 30, 2023

NewsPension Management, Returns, South Korea

26OctOctober 26, 2023

Britain tells pension funds change needed to improve returns

Britain will not force pension funds to consolidate or invest in high-growth companies, but there must be change in the sector to give pension holders better long-term returns, finance minister Jeremy Hunt said on Wednesday. Hunt launched the "Mansion House Compact" in July to help channel cash from direct contribution pension funds into unlisted companies to boost Britain's economic growth. The government wants to persuade pension schemes to invest some of their funds in infrastructure as well as startups and green technology. Ten companies...

October 26, 2023

NewsInvestment, Returns, UK

07JulJuly 7, 2023

World’s Largest Pension Fund Posts Quarterly Gain, Record Assets

Japan’s state pension fund, the world’s largest, posted its strongest quarter in more than two years as gains in global stock and bond markets during the three months through March boosted the value of its assets to a record. The Government Pension Investment Fund added 5.4% during the quarter, raising its total assets to 200.13 trillion yen ($1.39 trillion), the fund said in Tokyo Friday. Foreign equities were the top performers, gaining 8.2% as the US started to overcome a...

July 7, 2023

NewsJapan, Pension Management, Returns

March 2024

US. Pension Funds Are Tapping Affordable Housing for High Returns — Not the Social Benefits

February 2024

Canada. CDPQ posts 7.2% return in 2023

Kenya. Pension returns trail inflation rate for the second year

January 2024

South Korea. NPS Achieved Impressive 9.88% Annual Return Last Year, Approaching 1 Quadrillion Won Mark

The State of Pensions 2023: Year End Update

December 2023

Developed Nations’ Public Pension Plans Dropped By Average of 15% in 2022

November 2023

Austrian pension funds to lose 7.5% in asset value due to climate risks

October 2023

Korea’s national pension fund logs over 10% return through October

Britain tells pension funds change needed to improve returns

July 2023

World’s Largest Pension Fund Posts Quarterly Gain, Record Assets