January 2023
18Jan

Investment Risk Minimization and Optimization of Future Pension Plans

By Peter Vodička Thesis is a collection of three papers with several contributions to the optimisation of future pension plans for the long-term savers while minimising their investment risk. Since pillar aim is to improve the transparency of the pension funding, we develop investment strategies for individual savers which are easy to understand whilst at the same time performing optimally, or near optimally. Furthermore, all investment prospects are communicated in real terms. Principal investment strategy introduced in the thesis is called...

January 18, 2023
Articles, Investment, Pension Management, ,
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18Jan

Choosing Pension Fund Investment Consultants

By Aleksandar Andonov, Matteo Bonetti & Irina Stefanescu Pension funds rely on the advisory services of investment consultants for asset allocation decisions, manager selection, and performance benchmarking. While prior research finds that consultants generally do not add value, pension funds have increased the number of consultants over time, particularly in alternative assets, such as real assets, private equity and hedge funds. We explore the factors underlying the hiring and firing of consultants and examine whether these decisions are made in the...

January 18, 2023
Articles, Pension Management,
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13Jan

2021 ESG Report. Government Pension Investment Fund

 By: Government Pension Investment Fund Government Pension Investment Fund (GPIF) manages and invests Japan’s pension reserve fund, which is used to pay Employee Pension Insurance and National Pensions. We contribute to the stability of the pension system by earning returns on our investments and distributing these to the government ESG is the acronym for Environmental, Social, and Governance. While investors have traditionally used cash flows, profit margins and other quantitative financial data to value a company’s equity or other securities, “ESG...

January 13, 2023
Books, Books, Pension Management, , ,
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December 2022
01Dec

OECD Pensions Outlook 2022

The OECD Pensions Outlook discusses how to introduce, develop and strengthen asset-backed pension arrangements, the role that employers can play in their provision, and the implication of different fee structures on individuals saving for retirement and on providers. The 2022 edition focuses on describing best practices for developing mortality tables and providing policy guidance on how to design, implement and continue the operation of non-guaranteed lifetime retirement income arrangements. Get the report here

December 1, 2022
Books, Books, Pension design, Pension Management, Pension Reform, Regulation, Reports, Slider, Slider, System Sustainability, , , , ,
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November 2022
25Nov

Global top 300 pension funds

By Thinking Ahead Institute and Pensions & Investments Pension fund industry trends Growth headwinds test financial and sustainability mandate resilience Has the macro reality shifted from ‘lower-for-longer’ to ‘end-of-cheap-money’? The last decade’s fear of deflation has been replaced by significantly higher inflation. A steep rate hike cycle has led to more interest rate volatility and is placing pressure on pension funds to deliver sufficient risk-adjusted returns. Pension funds are expected to face elevated macro uncertainty over the short term. The industry has...

November 25, 2022
Books, Books, Pension Management, ,
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22Nov

P&I Research Center. Public Pension Plan Benchmarks

Prepared by: Valerie Ge, CFA Research Analyst This report intends to provide insights into the overall and asset class benchmarks selected by the 50 largest U.S. public defi ned benefi t plans. The top 50 plans are selected based on their reported U.S. DB asset totals in Pensions & Investments’ 2021 survey. Eleven out of 50 plans did not disclose enough detailed information, and 10 plans had a fi scal year ended other than June 30. Insights into the overall and...

November 22, 2022
Books, Books, Pension Management, Public Pensions, Reports, , ,
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October 2022
21Oct

P&I Research Center. Pension Risk Transfer

By Valerie Ge Over the past 12 months through June, $57.4 billion in liabilities were involved in pension risk transfer deals. Pension buyout transactions reached $25.3 billion, or 44.1% of the total, followed by buy-ins of $23.2 billion, 40.4%, and longevity swaps of $7.5 billion, or 13.1% of the total. Buyout transactions increased 93.3% from $2.9 billion in the fi rst quarter but buy-in transactions declined to $2.4 billion from $7.3 billion. Source: @s3 prod pionline 264 views

October 21, 2022
Books, Books, Pension Management, Reports, System Characterization, , , ,
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14Oct

Herd Behaviour of Pension Funds by Asset Class

By Jacob Antoon Bikker & Ian Koetsier This study investigates asset herd behaviour for Dutch pension funds from 1999 to 2014 using quarterly data. We find herd behaviour for investments in twenty asset classes including non-traditional asset classes, and to both purchasing and selling. Pension funds’ herd behaviour is particularly high in alternative investments, which might increase herding in general, as pension funds move their portfolio towards these assets in recent years. Herding intensity is higher during stock market crises,...

October 14, 2022
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14Oct

Liability Driven Investment and Asset Allocation inspired by JPM LTCMA

By Eddy H. Verbiest A white-box deterministic system simulates long-term LDI cashflows using as input J.P.Morgan Long Term Capital Market Assumptions adapted to make them interest rate dependent. Trading, coupons and dividends provide cashflows to pay liabilities and extract excess cash to stakeholders while maintaining the allocation weights and target lifes. Performance is measured by FixPct: the annually extractable Fixed Percentage of remaining liabilities to run-off to zero. This measure summarizes the interplay of drivers over many decades and allows...

October 14, 2022
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06Oct

Pension funds in sub-Saharan Africa

By Owen Nyang`oro & Githinji Njenga The population structure the world over is going through a demographic shift, and the elderly proportion is projected to increase with population growth. This change is a matter of concern for sub-Saharan African (SSA) countries, where the majority of the people are young and the rates of both population growth and unemployment are high. A good pension system provides elderly assistance and is a source of savings for long-term investment. The pension systems in...

October 6, 2022
Articles, Pension Management, Savings, , ,
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