Pension Management Archives - Page 39 of 92 - Pension Policy International

25NovNovember 25, 2022

UK. MPs told ‘illegal’ LDIs fanned gilt crisis

The flames of the crisis in the gilt market following the Mini Budget were fanned by widely used liability driven investments (LDIs) that were “almost certainly illegal”, MPs were told yesterday. At a hearing in front of the Work and Pensions Select Committee, experts criticised LDIs for being highly leveraged, causing "carnage" for some pension schemes, and blamed regulators for not acting previously. Bond market veteran Dr Con Keating, now head of research at the specialist insurer Brighton Rock Group, said...

November 25, 2022

NewsInvestment, Pension Management, UK

23NovNovember 23, 2022

US. Here’s How Much Rising Rates Help Pension Plan Liabilities

Rising interest rates may be a bane for the fixed-income section of pension plans’ portfolios. But the ascending rates tend to have a benign influence on pension liabilities. A study by NISA Investment Advisors sketches out how much, and also spotlights little-appreciated side effects. Boosting long-term rates means that the liabilities, or the plans’ discounted value of future cash flows, decrease. All things being equal, this situation tends to produce the welcome result of enhancing plans’ funded status. By NISA’s calculations,...

November 23, 2022

NewsPension Management, US

22NovNovember 22, 2022

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, Reports2022, Pension Management, Public Pensions, US

21NovNovember 21, 2022

UK regulators call for action on hidden leverage threat to pension funds

Regulators and policymakers are calling for action to address the risks associated with pension funds’ use of derivatives, after key watchdogs admitted last week that they were unprepared for the crisis that hit the industry in September. The meltdown, now the focus of four separate parliamentary probes, revealed regulators did not have a reliable picture of the scale of hidden leverage in liability-driven investment (LDI) strategies, which cover about £1.4tn of the future promises made by UK defined benefit pension...

November 21, 2022

News2022, Investment, Pension Management, Regulation, Risk, UK

21NovNovember 21, 2022

India. Government pension funds need more lucrative investment avenues to quell controversy between old and new schemes

By Gautam Mukherjee When the Vajpayee administration introduced the new pension system (NPS) for Central and other government employees commencing on 1 January 2004, the motivation was to ensure long-term viability. It is mandatory for the Central government employees and a few other entities. Much greater longevity had complicated the calculations on the old pension system (OPS). The threat of a bankrupt state defaulting on pensions, such as West Bengal, Kerala or Punjab today, was already beginning to loom large in...

November 21, 2022

News2022, India, Investment, Pension Management, State Pensions

15NovNovember 15, 2022

The Nobel laureate, Paul Krugman and other experts will celebrate 25th anniversary of the Mexican pension system at Encuentro Amafore 2022

Encuentro Amafore 2022 will take place at the Citibanamex Center on the 16 and 17 of November, with keynote speeches by the 2008 Nobel Prize in Economics, Paul Krugman; 2004 Pulitzer Prize-winning historian and geopolitical expert Anne Applebaum; the political scientist, writer and professor at Stanford University, Francis Fukuyama; and the Director of Strategic Alliances and Contents of América Móvil, Arturo Elías Ayub. It will also feature keynote addresses by the director of strategic functions at BlackRock, Peter Fisher; Franklin...

November 15, 2022

News2022, ESG, Financial Inclusion, Innovation, Mexico, Pension Management, Regulation

11NovNovember 11, 2022

Canadian teachers could have a $95 million hole in their pensions due to the FTX crypto implosion

The crisis at cryptocurrency exchange FTX is having ramifications far and wide. Now Canada’s third largest pension plan is revealing details about its exposure to the troubled company led by 30-year-old crypto billionaire Sam Bankman-Fried. On Thursday, the Ontario Teachers Pension Plan (OTPP) released a statement saying that in October 2021 it invested $75 million in both FTX International and its U.S. entity FTX.US. Additionally, it said, it made a follow-on investment of $20 million in FTX.US in January this...

November 11, 2022

NewsCanada, Investment, Pension Management

11NovNovember 11, 2022

Liquidity crunch tops institutional investors’ greatest tail risks

The top three tail risks for global institutional asset owners are an unexpected liquidity crunch, a military conflict in the Asia-Pacific region and a major cyberattack, according to a new survey conducted by PGIM, the money management subsidiary of Prudential Financial. The survey of 400 senior investment officials at asset owners representing more than $12 trillion in assets shows the greatest common level of concern is a liquidity crunch in capital markets resulting in a market crash, according to a...

November 11, 2022

NewsPension Management, Risk

10NovNovember 10, 2022

UK. Insurers face claims threat from pension fund LDI crisis

The events of the past few weeks are likely to result in claims and/or pressure on commercial relationships, particularly when pension schemes conduct their triennial valuations and agree new deficit reduction plans with employers. UK pension scheme managers and their insurers could face claims over their use of liability-driven investment strategies following the turbulence caused by Liz Truss's mini-budget There may be a surge in professional negligence claims against liability-driven investing (LDI) pension funds in the wake of the UK’s mini-budget. Claims...

November 10, 2022

NewsInvestment, Pension Management, UK

10NovNovember 10, 2022

Nordic pension funds want to increase climate investments in emerging markets and developing economies

At COP27 in Sharm el-Sheikh, Egypt, the Climate Investment Coalition (CIC), in collaboration with the Nordic Council of Ministers, presented key investor recommendations to bridge the climate finance and investment gap by 2030 towards emerging markets and developing economies. This was made alongside an overview of Nordic pension fund progress within climate and clean energy investments in 2022. Despite financial challenges and a volatile economic environment, the first wave of pension fund reporting in 2022 indicates that the Nordic pension...

November 10, 2022

NewsClimate crisis, ESG, Pension Management

November 2022