January 2020

08Jan

MidEast Retreats as Investors Steer Clear of Most-at-Risk Region

Middle Eastern markets can hardly be accused of complacency over the latest surge in regional tensions, even if global investors are taking a more relaxed view of events. The region accounts for three of the world’s 10 worst-performing equity indexes since the U.S. drone attack that killed Iran’s General Qassem Soleimani last week, while the dollar-denominated bonds of Iraq, Lebanon, Bahrain, Egypt and Oman are among the 10 biggest losers in emerging markets. Read Also Us public pension funding crisis...

January 8, 2020
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02Jan

Japan’s GPIF is right — short selling is downright irresponsible

When the Japanese Government Pension Investment Fund (GPIF) announced it was going to stop stock lending, the decision was met with a mixed response from commentators. Among them was a damning conclusion from the Financial Times’ Lex column, which suggested this was another example of Japan Inc “scoring an own goal”. I could not disagree more. The GPIF is one of very few major financial institutions not only to have thought through its own broader responsibilities but also to have put...

January 2, 2020
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December 2019

24Dec

Africa’s Biggest Fund Manager Needs CEO for $150 Billion Assets

South Africa’s main manager of government-worker pensions is facing its second new year in a row without a chief executive officer as the board struggles to identify a suitable custodian of its $150 billion of assets. The state-owned Public Investment Corp. has been without a permanent leader since Daniel Matjila was ousted in November 2018, with two consecutive acting heads running Africa’s biggest fund manager in the meantime. Reuel Khoza, the PIC’s first non-government affiliated chairman, said in July...

December 24, 2019
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17Dec

South Africa Government Pension Returns 2.6% in Fiscal 2019

South Africa’s Government Employees Pension Fund (GEPF) returned 2.6% during the fiscal year ended March 31, down from 8.5% in 2018, but beating its benchmark of 2.3%. That brought its asset value to R1.82 trillion ($122.9 billion), an increase of R17 billion compared to the previous year. The fund attributed the outperformance of its benchmark to improved resource commodity prices, which it said favored the fund’s tactical overweight position in resources relative to the benchmark. The basic...

December 17, 2019
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12Dec

UK Pension Risk Transfer Market to Quadruple in Decade

The UK’s bulk annuity market is forecast to quadruple over the next decade, driven mainly by lower pricing as more pension plans mature and additional reinsurers enter the UK market, according to consulting firm Mercer. By the end of 2019, Mercer said it expects the bulk annuity market in Great Britain to exceed £40 billion ($52.6 billion), with the total UK risk transfer market, including longevity swaps, forecast to reach £50 billion. Mercer said it has also...

December 12, 2019
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11Dec

MySuper Product Heatmap

By APRA The MySuper Product Heatmap provides assessments of the performance of every MySuper superannuation product. The heatmap provides stakeholders with transparency on the outcomes being delivered by all trustees providing MySuper products. It is designed to lift industry practices and enhance member outcomes by publicly identifying which MySuper products are underperforming and the areas they need to improve. It uses a graduating colour scheme to provide credible, clear and comparable insights into MySuper products across three areas: investment performance, fees...

December 11, 2019
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11Dec

Danish Pension Assets Swell to $680 Billion as Funds Add Risk

Denmark’s pension industry has grown to more than double the country’s gross domestic product after adding about $100 billion this year alone. “The first nine months of 2019 saw considerable growth in the companies’ balance sheets as a result of substantial returns on pension wealth,” the central bank said on Tuesday. That followed a substantial increase in holdings of asset classes outside the traditional bond and stock allocations. Pension funds have been shifting their allocation to alternative assets as...

December 11, 2019
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10Dec

Latin American AuM will more than double by 2025: PwC report

Despite a number of Latin American countries facing political and economic uncertainty, the long term growth prospects for the asset and wealth management industry remain strong across the continent according to a report published today by PwC and Sura Investment Management. The report, titled Asset and Wealth Management Revolution: Latin America's flourishing opportunities, finds that, despite the challenges faced by the region, assets have grown by 7.9% compounded annual growth rate (CAGR) since 2015 to reach $2.4trn in 2018....

December 10, 2019
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04Dec

UK. FTSE 350 pension deficit falls as election nears

The accounting deficit of defined benefit (DB) pension schemes has fallen for the UK’s 350 largest listed companies as the country prepares to go to the polls on December 12.At the end of October, the deficit stood at £41 billion (€48.1 billion). By the end of November, it had dropped to £38 billion, according to Mercer’s pension risk survey. Charles Cowling, partner at Mercer, said: “The political turmoil in the UK is likely to last beyond the general election, causing...

December 4, 2019
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04Dec

US. Connecticut to stop investing pension money in gun manufacturers

Connecticut's treasurer, who oversees $37 billion in public pension funds, announced plans Tuesday to divest $30 million worth of shares in civilian firearm manufacturers while banning similar future investments and creating incentives for banks and financial institutions to enact gun-related policies when lending to companies. If approved by an advisory board, it will mark the first time Connecticut has taken the step of divesting shares in firearm-related companies since the 2012 Sandy Hook Elementary School shooting in Newtown that...

December 4, 2019
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