June 2022
03Jun

Canada. Pension plan sponsors uncertain about balancing ESG factors, fiduciary responsibilities: ACPM

Defined benefit pension plans and defined contribution pension plans are uncertain about how to incorporate environmental, social and governance issues into their investment processes in a way that’s consistent with fiduciary duties, according to a new white paper from the Association of Canadian Pension Management. “Sustainable investing, including ESG, is an area where some investment risks that have been acknowledged for decades are now becoming more acute (e.g., climate risk),” said the white paper. “How pension plans can, and should,...

June 3, 2022
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July 2021
30Jul

Cliffwater: U.S. state pension plans’ 10-year returns drop in latest annual report

U.S. state pension plans saw average median returns of 8.6% and 5.8% for the 10 and 20 years ended June 30, 2020, respectively, said Cliffwater's most recent annual state pension performance report. State plans saw an average annualized return of 9.7% for the 10 years ended June 30, 2019. Pensions & Investments' Pension Fund Returns Tracker shows that the two top-performing state pension plans for the 10 years ended June 30, 2020, were the $22 billion Oklahoma Teachers' Retirement System, Oklahoma...

July 30, 2021
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09Jul

Hong Kong’s pension fund posts 4.5 per cent investment gain in first half, but policy and regulatory challenges lie ahead

Hongkongers probably earned the most returns in two years from their US$154 billion pension scheme in the first half of this year from a rally in global stocks. These winnings could be eroded by policy tightening in the US and a tech sector crackdown at home by China. Read also ESG: Fad or Future? The Mandatory Provident Fund (MPF) generated HK$52.6 billion (US$6.8 billion) of investment income in the January to June period, according to calculations by the Post based on...

July 9, 2021
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June 2021
14Jun

US. Pensions under fire after PE underperforms

For decades, state pension funds have relied on the private equity industry to invest retirement savings for teachers, firefighters and other public-sector employees. But in recent years, critics of alternative assets have argued that pension managers, who oversee some $4.5 trillion across the US, would be better served investing in low-cost index funds that track the S&P 500 and avoiding PE's high fees. This past week, public pension fund managers threw PE detractors more red meat, raising larger questions about...

June 14, 2021
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11Jun

Risk-Adjusted Valuation in the Worker’s Economic Decision Making

By Hangsuck Lee, Doojin Ryu, Jihoon Son We suggest an overlapping generations model incorporating the risk-adjusted valuation in a worker’s decision problem. The risk-adjusted probabilities allow risk-averse workers to place more weight on cash flows upon retirement when assessing lifetime income at present value. The risk-adjusted valuation is consistently applied to any non-financial asset, allowing them to be evaluated collectively or separately. We predict capital returns under demographic structure, consumption preference, and social security policy changes. Source: SSRN 189 views

June 11, 2021
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