More comment – Page 11
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Opinion PiecesWhy DC pensions should choose private equity as first step into illiquids
Governments, regulators, central banks and even trustees are talking about illiquid investments and the productive economy. This is correctly driven by an underlying belief that illiquid assets can improve overall portfolio risk-adjusted returns. But most importantly, if defined contribution (DC) trustees are already keen to get behind productive finance, where do they start if they currently allocate nothing to illiquids?
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Opinion PiecesPensions are instrumental in Europe’s unfinished capital markets project
This summer will mark 10 years since Jean-Claude Juncker, former EU Commission president, outlined a vision for a European Capital Markets Union (CMU) – a project both uncompleted and still acutely needed.
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Opinion PiecesIBM revives defined benefit pensions in the US
This January 2024 marks an important turning point in the US retirement industry. Technology giant IBM, which has always been seen as a bellwether of American business practices, is keeping its 401(k) plan, but will stop matching contributions of up to 6%.
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Opinion PiecesLabour market evolution: the macro trend that investors cannot ignore
Macroeconomic factors can overwhelm micro ones for investors. The impact of COVID is a good example. But the short-term impact of COVID on labour markets can mask structural trends in the evolution of labour markets that have much more profound long-term impacts, according to a paper by PGIM
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Opinion PiecesAustralia's super funds strengthen their voice
A new superannuation advocacy body has been established in Australia. Known as the Super Members Council of Australia (SMC), it will become the voice of Australia’s rapidly-growing profit-to-members super funds.
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Opinion PiecesViewpoint: Unequal voting rights must be phased out
Weakening protections around dual class share structures will not deliver the desired benefits
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Opinion PiecesLondon’s new Lord Mayor sets out his stall for the City as a centre for global problem solving
The newly elected Lord Mayor of the City of London Michael Mainelli is keen to position the City as a global problem solving hub and not just a financial services centre
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Opinion PiecesSecurities litigation can be worth the effort
Pension funds and other institutional investors face an uphill challenge when it comes to managing their investor action responsibilities.
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Opinion PiecesWill social partners carve a new role for themselves in pensions?
Social partnership can mean different things in many countries, or very little at all in others. The concept resonates most in continental Europe, where a tripartite framework of social-market capitalism has taken root since the second world war, in which corporatist decision-making involving government, labour and employer voices is entrenched.
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Opinion PiecesInvestors should focus on debt sustainability
The good news for institutional investors as 2024 approaches is that central banks seem to have accomplished something remarkable. Inflation is falling in the US and Europe after rising to levels not seen for decades, thanks to what have been among the fastest and sharpest rate hikes. Economic growth has held up, at least in the US. Many economists expect a soft landing there, and a mild recession in Europe.
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Opinion PiecesInvestors could do more to boost German start-ups
The German constitutional court’s ruling that the government’s reallocation of €60bn worth of debt to the country’s Climate and Transformation Fund is unlawful was a blow. But there was also also some welcome news last month.
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Opinion PiecesElection result is bad news for the pension sector
NSC, the new political party that made headlines in this publication with its controversial plan to block pension funds from converting DB pensions to DC without explicit consent from members, did not win the landslide victory that many pension executives feared. But they probably did not get a good night’s sleep anyway.
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Opinion PiecesActive management is back on the menu for US pensions
Rising rates and market volatility are forcing US pension funds to rethink their approach to passive and active investing. They are realising that their US stock portfolios are not diversified enough to help protect against a correction. But change may not come so fast.
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Opinion PiecesSuper funds voice corporate governance concerns with Australian business
At its recent annual general meeting in Melbourne, Qantas, Australia’s national carrier, was lambasted by irate shareholders over a litany of grievances, not least the role of chairman Richard Goyder and the board over what shareholders saw as the mismanagement of the airline.
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Opinion PiecesIreland – future pensions tiger
Ireland stands a few policy steps away from the creation of a serious first and second-pillar pensions architecture that will improve the country’s international standing in terms of retirement provision.
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Opinion PiecesRegulation of private markets is essential
The private markets industry is feeling the pinch. Private equity managers, in particular, are having a hard time raising capital and exiting investments. There are also questions about returns from recent vintages, as businesses struggle with inflation and a choppier trading environment. Meanwhile, private credit managers are pushing back loan repayments to safeguard returns as higher interest rates reduce borrowers’ ability to fulfil their obligations.
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Opinion PiecesIrish pensions auto-enrolment is a worthy challenge
Irish citizens are set to get a retirement boost following the government’s decision to implement its auto-enrolment retirement savings scheme in 2024. That is, if all goes to plan. Under the proposed scheme, which has been a topic of debate in Irish politics for at least 15 years, employees will have access to a workplace pension savings scheme that is co-funded by their employer and the state.
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Opinion PiecesSweden’s Alecta seems immune from criticism but beware the watchdog
Right now, Alecta cuts a strange figure – one of Europe’s biggest pensions institutions wounded after gaping investment losses, and sustaining still worse injuries from the monopolistic hubris it leaves in its wake.
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Opinion PiecesSEC cracks down on private equity and hedge funds
Pension funds, university endowments, insurance funds, and other institutional investors have long called for more transparency about their investments in private equity and hedge funds.
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Opinion PiecesPensions a bright spot for Australia
By 2063, Australia’s relatively youthful treasurer, Jim Chalmers, will be 85 years old and likely well into retirement.
