Articles and white papers for pension funds. The research in this category covers both defined benefit and defined contribution pensions funds worldwide. The most popular papers in this category tend to cover either the asset management of DB pension plans, or the design of DC pensions plans. For instance, on DB pensions, the most popular papers are... a KPMG Survey of Liability-Driven Investing, a guide to re-orient investment strategy to the long-term, a study on allocating to infrastructure investments, and a framework to evaluate de-risking strategies. Whereas the most popular DC papers in this category cover selecting a default glide-path and DC design around the world. Most papers in this section are aimed at pensions managers and trustees, such as a paper on international pensions governance trends, and a guide to investment management agreements. For listings of more specific content - either by country or by DB/DC - please click on the appropriate section in the main menu.
This report by Willis Towers Watson's Thinking Ahead Institute provides detailed analysis of the world's largest pension funds. Funds increased their value by 15.1% in 2017, compared to an increase of 6.1% in 2016. North America remains the largest region in terms of assets under management (AUM), accounting for 42.3% of all…
This paper by PwC examines investment process best practices by global pension funds. It looks at growing asset allocation trends, regulations, governance models, and other drivers of change.
Global investors, and pension funds specifically, must take climate change considerations into account. The Pensions Regulator has already mandated that pension funds integrate ESG issues into their investment strategy. This guide, produced by the PLSA, provides a programme of action for pension funds in order to further…
New bfinance data reveals falling fees in several sectors, especially where providers have been under pressure from cheaper competitors or the investment landscape has evolved. Meanwhile, many asset managers have seized the opportunity to launch fashionable products at a premium to their conventional equivalents, with…
This paper by DCIIA offers plan sponsors a new perspective on enhancing or implementing automatic plan features in a DC plan. It highlights several possible benefits of this to the employer. It also provides a roadmap that plan sponsors might use to implement automatic plan features over several years.
The retirement dream for many is to retire early enough to enjoy the fruits of their labours. The reality however is that for many there isn't enough money in the bank to last the entirety of their retirement. This paper by Citi looks at the scope of the problem both on the private and the public side. The author examines…
Typically, institutional investors around the world pursue one of four investment goals: absolute return, liability-driven investment, total return or principal protection. Generally, they choose from four different investment approaches: static tilts, traditional active management, market-capitalization exposures and…
The authors of this paper propose the "virtual annuity" approach to help determine a retirees' spending rule. They state that every year, a pensioner should only spend the amount a recently purchased annuity would pay out that year - with a buying price that equates to the then-present portfolio value, with a price that…
An excellent and comprehensive study of compensation amongst Canadian CFA Charterholders. Showing salary, bonus and benefit levels for portfolio managers, multi-asset PMs, portfolio analysts, risk analysts, compliance/regulatory professionals, investment marketers, product development professionals, investment advisers and…
This 60-page report investigates a variety of approaches that may be taken by institutional investors in order to find new long-term investment strategies. Examining the five key action areas (risk appetite statements, investment mandates, benchmarking processes, evaluations and incentives, and investment benefits), this…
Since the early 1990s, the pioneers in infrastructure investing have been Canadian and Australian pension funds. Globally, these funds currently have the highest allocation of assets to infrastructure. In this article, the authors compare and contrast institutional investors' experiences in Australia and Canada, examining…
Climate change presents a potential systemic risk to the financial system. This 60-page guide by the Institutional Investors Group on Climate Change aims to serve as a ‘how-to guide’ for institutional investors who are beginning to construct and conduct scenario analysis.
bfinance's 2018 Asset Owner Survey is the firm's largest investor research study to date. It provides invaluable insights into some of the key challenges faced by asset owners around the world. Key themes examined include: entering new asset classes; improving diversification; active, passive and smart beta; ESG in practice…
This is an annual report by Goldman Sachs AM. It provides key observations based on the authors' analysis of the 50 largest U.S. Defined Benefit (DB) plans in the S&P 500. The analysis spans a range of topics, from areas such as system-wide funded status, asset allocation and actuarial assumptions.
This is Willis Towers Watson's latest annual Global Pension Assets Study. It covers 22 major pension markets which now total over US$41 bn in pension assets and account for nearly 70% of the GDP of these economies. The study examines the seven largest markets in more detail (US, UK, Switzerland, Netherlands, Japan, Canada,…
SSGA identifies and discusses 10 best practices for global defined contribution pension plans, including - articulating objectives of total rewards globally, establishing a clear and flexible governance framework, deciding on a global investment philosophy, promoting higher savings rates, and seeking other efficiencies.
Increasing life expectancy is one of the most profound success stories of the post-war era. The pace and scale of this human success story has been remarkable, but it is creating its own challenges for corporates.
In this edition of our quarterly letter Ian Lance looks at one of today's largest and yet least discussed issues: the extent to which different types of pensions across the globe are underfunded. After identifying the factors that led to this situation, he examines the potential implications of trying to deal with the shortfall…
This study was commissioned by Future Fund, the Australian SWF. It aims compare best practices across leading asset owner funds with reference to benchmarks. The authors aim to reveal opportunities for idea sharing, development, and challenge between these funds. Eight specific focus areas emerge from the study: Culture,…
The Australian superannuation industry is now one of the largest retirement savings pools in the world with assets of around $2.2 trillion. This 42-page paper gives a helpful historical overview of the industry. It covers different areas: the history of superannuation, the current industry structure, market concentration and…
