Defined contribution plans focus too much on the short-term accumulation of pension assets rather than the longer-term goal of securing an adequate retirement income. This paper by the World Bank, based on case studies from a number of countries, argues that pension supervisors have not properly defined the objectives of DC pension systems It suggests
Last month Harvard Management Company was the first US university endowment to sign the PRI. It has also appointed its first vice president of sustainable investing as it seeks to incorporate ESG considerations in its decision making. So how is HMC integrating ESG in its portfolio? Harvard University has taken a stand for sustainability.
The Australian superannuation industry is often quoted as among the world’s best. However a new report by the Grattan Institute reveals Australian funds charge on average three times the OECD median rate. The report says that superannuation fee reform is the biggest opportunity for micro-economic reform in that country’s economy. The report, Super sting: how
Two high profile pension funds, ATP of Denmark and HOOPP of Canada, have been very successful in managing their assets in two distinct portfolios. But the practice of fund separation, a portion of the portfolio for liability hedging and another for alpha generation, is not common in pension management. It should be. For these two
Investors should take care in selecting corporate engagement firms to ensure the engagement reflects their portfolio holdings, warn academics at Oxford and Maastricht Universities following a new study which reveals a home bias in such activity. As the investment portfolios of large institutional investors become increasingly global, it is particularly important that they carefully select
This paper, which examines the impact of the trend in the US of corporate funds freezing their defined benefit funds and offering defined contribution plans, shows that net of the increase in total DC contributions, firms save 2.7-3.6 per cent of payroll per year, and over a 10-year horizon they save 3.1 per cent of
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