October 2022
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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June 2022
22Jun

US. Rising interest rates make it trickier to choose between a lump sum or an annuity

About 15% of private-sector workers have access to a traditional pension, which they often are able to take as a lump sum instead of an annuity. For anyone edging close to a retirement date, be aware that the higher the interest rate used to calculate a lump sum, the smaller the amount. On the other hand, pension annuities typically do not come with cost-of-living adjustments, making them susceptible to inflation risk. Here’s what to know. When you’re nearing retirement and are due a...

June 22, 2022
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April 2022

The New Corporate Governance
28Apr

The New Corporate Governance

By Oliver D. Hart & Luigi Zingales In the last few years, there has been a dramatic increase in shareholder engagement on environmental and social issues. In some cases shareholders are pushing companies to take actions that may reduce market value. It is hard to understand this behavior using the dominant corporate governance paradigm based on shareholder value maximization. We explain how jurisprudence has sustained this criterion in spite of its economic weaknesses. To overcome these weaknesses we propose the...

April 28, 2022
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March 2022
07Mar

Target date retirement funds work up to a point. Here’s when you may want to reconsider

A retirement-savings option that can be smart at the outset of your career probably needs to be reexamined down the road. Target-date funds, as they’re called, offer a way to put your savings on autopilot: Holdings gradually shift away from riskier assets like stocks and toward more conservative investments (bonds and, perhaps, cash) as you approach retirement. While they are designed to be a “set it and forget it” way to save for retirement, these funds may make sense only for...

March 7, 2022
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November 2021
19Nov

Asset Allocation: Glide Path Design for Target Date Retirement Funds

By Thomas Present, Sharon Persyn In this thesis, we discuss and compare target date retirement fund strategies that have been used in recent literature. These strategies include the 100% equity, glide path, maximum drawdown, risk budget and target return strategy. We conduct sensitivity analyses in order to obtain optimal parameters for the different strategies. We first compare the strategies with rebalancing between two asset classes: equity (Russell 1000) as the risky asset and bonds (10Y US government bonds) as the...

November 19, 2021
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