August 2022
16Aug

Tough Times Ahead Warns CEO of Australia’s Largest Pension Fund

Consumers and businesses will continue to struggle as global policy makers battle to get inflation under control, the head of Australia’s largest pension fund told a media forum. “Our view is that there are some pretty tough times ahead,” Paul Schroder, chief executive officer of the A$260 billion ($182 billion) AustralianSuper Pty, said on Tuesday. “We think we are in a continually tight environment. The question now is what is the rate of that tightening and is there a pivot around...

August 16, 2022
News, , ,
Read more...

July 2022
28Jul

In a Highly Indebted Economy: Security Issues for the Asset-based China’s Reform and the Financial System

By Tianyong Zhou Since the start of the 21st century, all major global economies have been experiencing a shift to a model of low consumption, low interest rate, low inflation, low growth and high debt. China is no exception. This article argues that in the high-indebtedness economic model, the proportion of committed and guaranteed debt service credit is decreasing, while the proportion of asset-backed credit corresponding to debt is on the rise; and with respect to currency stability, the role...

July 28, 2022
Articles, System Characterization, , ,
Read more...
28Jul

South Korea pension fund says it is not driving won down

South Korea's national pension service, manageing the world's third-largest pension fund, said on Thursday its rising overseas investment was not a main driver of the won's recent weakening. "The fund is applying a strategic FX hedging strategy when the foreign exchange rate stands above a certain level," the National Pension Service said in a statement while responding to local media reports blaming it for the won's fall. Read more @Channel News Asia 226 views

July 28, 2022
News, , ,
Read more...
21Jul

South Korea huge pension fund a local force driving won lower

South Korea's strenuous attempts to defend a sharply weakening currency have run into an unstoppable home-made force working in the opposite direction: the national pension fund. The National Pension Service (NPS), the world's third-largest such fund, has a hefty and growing appetite for equity and bond investment abroad, which it can feed only by selling won for foreign currency. It made net purchases of about $10 billion of foreign bonds and stocks in the first five months of 2022, central bank...

July 21, 2022
News, , ,
Read more...
14Jul

US. Biggest Investor Worries Are Inflation and Recession Risk

Top retirement income concerns for investors are inflation and recession anxiety, a new report reveals. The Alliance for Lifetime Income and CANNEX research from the “Protected Retirement Income and Planning Study” found that four out of five U.S. workers age 45 to 75 cited concerns that high inflation will reduce their spending power in retirement (81%) and that a recession will drive the economy downward and may reduce the amount of retirement income they can expect (79%). Retirement income anxiety is...

July 14, 2022
News, , ,
Read more...

June 2022
30Jun

Does Informality Hold the Key to Growth and Stability?

By Meghna Dutta This paper attempts to analyse the impact of a prevailing informal sector on the dynamics of growth and inflation in developing economies. The high growth rates posited by most developing economies in the presence of a huge informal sector suggest that this sector might not be the malefactor as often indicated. The main results show that the informal economy not only contributes to economic growth but the firms also help to significantly reduce inflation by generating employment...

June 30, 2022
Articles, Labor Market, ,
Read more...
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
News, , ,
Read more...
15Jun

Hong Kong Pension Pot Shrinks 11% on China Market Turmoil

It’s been a bad year for Hong Kong residents counting on Greater China for their retirement savings. The mandatory provident fund -- Hong Kong’s pension system -- has lost about 11% since the start of 2021, walloped by China’s industry crackdowns and Covid Zero policy, which overshadowed gains in US assets. That erased HK$130 billion ($17 billion) in total, or about HK$28,300 for each account at the end of May, according to researcher MPF Ratings Ltd. The retirement losses add to...

June 15, 2022
News, , , ,
Read more...

May 2022
05May

Effect of Pensions on the Capital Market

By Sang Wook NAM This study analyzes the impact of public and private pensions on the capital market to examine the empirical arguments for the need for pension development. To this end, we conduct an empirical analysis of the effect of pension assets on the capital markets in 17 OECD member countries. The methods comprise static and dynamic panel analyses, which are conducted in parallel based on panel data on the stock and bond markets and the asset sizes of...

May 5, 2022
Articles, Investment, Pension Management, , ,
Read more...

April 2022
19Apr

World Bank cuts 2022 global growth outlook on Russia invasion

The World Bank cut its forecast for global economic expansion this year on Russia's invasion of Ukraine and is planning to mobilize a funding package bigger than the COVID-19 response for nations to deal with various resulting and ongoing crises. The institution lowered its estimate for global growth in 2022 to 3.2% from a January prediction of 4.1%, President David Malpass told reporters on a call on Monday. The decline was spurred by a cut in the outlook for Europe...

April 19, 2022
News, , ,
Read more...