October 2024
11Oct

Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice

By Aizhan Anarkulova, Scott Cederburg & Michael S. O'Doherty We challenge two central tenets of lifecycle investing: (i) investors should diversify across stocks and bonds and (ii) the young should hold more stocks than the old. An even mix of 50% domestic stocks and 50% international stocks held throughout one’s lifetime vastly outperforms age-based, stock-bond strategies in building wealth, supporting retirement consumption, preserving capital, and generating bequests. These findings are based on a lifecycle model that features dynamic processes for...

October 11, 2024
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10Oct

Pension funds biggest investors in UK’s £10bn social impact investment market

Pension funds are the largest investors in the UK’s social impact investment market, according to the latest annual market sizing report from Better Society Capital (BSC). The report reveals that the sector grew to £10bn (€11.9bn) last year, marking a 7% increase compared to 2022. In 2023, investment by pension funds represented 21% of the country’s total social impact investment market, with most of their funds being directed towards social and affordable housing, according to BSC. Endowments and charities were the second biggest...

October 10, 2024
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09Oct

Korean public pension fund trailing peers on support for E&S votes, study finds

Korea’s National Pension System (NPS) is falling behind other large public pension funds on proxy voting, according to a study by local policy think tank the Economic Reform Research Institute (ERRI). With $818 billion in AUM, NPS is the second-largest pension fund in the world after Japan’s Government Pension Investment Fund. However, analysts at ERRI said an inadequate voting policy on sustainability issues means the fund consistently ranks low among peers on support for global ESG proposals. The study compares NPS with six European,...

October 9, 2024
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07Oct

China sovereign wealth fund registers benchmark-beating return

China Investment Corporation (CIC) delivered a benchmark-beating return in 2023 on the back of putting greater emphasis on private assets such as private credits and green energy investments. CIC posted 6.57% of ten-year annualised net return as of year-end 2023, outperforming its long-term performance benchmark by 31 basis points, the sovereign wealth fund says in its annual report. The fund’s cumulative annualised net return was 6.23% since its inception in 2007. CIC says the global macroeconomic paradigm shift continued to evolve in...

October 7, 2024
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04Oct

The Sustainable Investment Report 2024

By Dan Wills We are delighted to present the latest in our IFA Annual Report Series; The Sustainable Investment Report 2024. There are many facets of sustainability and companies are having to change their processes and behaviours to work towards our sustainable future. Researched and written by leading Compliance Consultant Tony Catt, this report is intended to provide a snapshot of the current situation and thinking from across the industry, in relation to the matter of sustainability in investment solutions. Get the report...

October 4, 2024
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02Oct

US. Private equity firms ploughing billions into fossil fuels, analysis reveals

Private equity firms are using US public sector workers’ retirement savings to fund fossil fuel projects pumping more than a billion tonnes of greenhouse gas emissions into the atmosphere every year, according to an analysis. They have ploughed more than $1tn (£750bn) into the energy sector since 2010, often buying into old and new fossil fuel projects and, thanks to exemptions from many financial disclosures, operating them outside the public eye, the researchers say. In many cases they are mortgaging workers’...

October 2, 2024
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September 2024
30Sep

UK. Pension funds generating more cash than savers expect, finds research

Pension funds are generating more returns than most Britons expect, according to new research which suggests many savers underestimate how much cash their pension can generate. Industry data shows that leading pension funds have brought average annual returns of 7.72% over the last five years for people who are 30 years away from retirement. The same researchers found in a previous survey that over a third of savers aged 18 to 54 only anticipate returns between 5% and 7%. The findings underline the...

September 30, 2024
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30Sep

Pension investors seek better means to force action on climate

Pension savers across the world are increasingly looking to invest their money in ways that help the climate. And, for those so inclined — whether as an employee with a workplace scheme or someone going it alone with a private pension — there are plenty of options available. Since 2022, UK pension schemes with more than £1bn in assets under management have been legally required to consider and report on climate-related risks and opportunities. Each relevant scheme should have a...

September 30, 2024
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30Sep

Global equities attract more pension investments

It is expected to continue as larger pension plans diversify their equity strategies. Pension funds are increasingly shifting towards global equity mandates as part of their investment strategies, reflecting a growing interest in international equities. According to Lesley-Ann Morgan, Global head of Pensions and Retirement, and Rachel Munnery, Product Strategy director at Schroders, sector flow data revealed a significant trend of positive net sales in global large-cap equities, contrasting with the consistent net outflows from regional equity mandates. Corporate defined benefit (DB) plans,...

September 30, 2024
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27Sep

Pension scheme assets – how they are invested and how and why they change over time

By The Pensions Policy Intitute We know both ‘quite a lot’ and ‘not enough’ about the assets that back current and future retirement incomes. Quite a lot because there are several sources of data that map pension fund assets and the way in which they are invested. Not enough because there are gaps in our knowledge and a multiplicity of data sets that classify assets in slightly different ways. The timing of different reports can also create difficulty mapping assets...

September 27, 2024
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