Asset Allocation – Page 202
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Features
A place for equities
IPE asked three pension funds in three countries – the Slovakia, Denmark and Germany – the same question: ‘Equities are still the only asset class that can provide the returns that pension funds need to reduce their deficits – or are they?’ Here are their answers Gabriel Hinzeller is ...
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Features
Generous to a fault
Belgium’s 150 MPs retire on one of the most generous pensions of any parliamentarians in Europe - some 75% of final salary - which compares with around two-thirds of final salary in most other cases. But in terms of the length of time it takes to accumulate a full pension, ...
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Features
Hard going in France
While multi-manager (MM) services have grown dramatically in popularity worldwide, France is one European market where progress has been slow. Foreign entrants to the French MM institutional market have found it particularly hard to make progress, and domestic organisations which set up MM products some years ago have found growth ...
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Features
Mandatory saving not the German way
The government has ruled out the possibility of private saving for retirement in Germany becoming mandatory, saying its pension reforms of 2001 and 2004 should be sufficient. To encourage saving for retirement, the government created Riester Rente in 2001 – second- and third-pillar pensions that qualify for government subsidies. But ...
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Features
Paying for the good life
One of the requirements of membership of the Salvation Army, the quasi-military Christian mission created by William Booth in 1865, is that members abstain from alcohol and avoid tobacco. This has created an unusual situation for the actuaries of the Salvation Army’s UK pension schemes, who have to take account ...
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Features
Greece looks to Ireland for reform model
The Greek government may turn to Ireland for “inspiration” on pension changes, a finance and economy ministry spokeswoman has said. The government is watching the changes launched in the EU member states with similar life expectancy problems for inspiration, the spokeswoman said. For the time being changes to the Greek ...
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Features
Tobback: making his mark
Belgium’s new pensions and environment minister Bruno Tobback has his work cut out. The ever more important and contentious portfolio of pensions offers challenges galore. But to make his mark Tobback must, at the tender age of 35, prove himself against the backdrop of his influential predecessor Frank Vandenbroucke, architect ...
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Features
It's a question of returns
There is some acceptance among pension funds in Europe that tactical asset allocation (TAA) – today’s version of it, at least – can top up their investment returns. But it is only in the Netherlands that TAA is widely used and spoken about. TAA, which can either be done by ...
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Features
Looking for the sweet spot
Sometimes what appears to be a creeping change can turn out to be the forerunner of a seismic shift and that may be the case for what is happening in global bond mandates. Richard Wohanka, CEO of Fortis Investments and with a bond background himself describes the situation: “In the ...
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Features
IAS19 impact on employee benefits disclosure
On 16 December 2004, the International Accounting Standards Board (IASB) published an amendment to IAS19. All EU-listed companies must comply with IAS19 (as amended) for accounting periods starting on or after 1 January 2005. Other EU companies may be required to adopt IAS19, or may be allowed to continue with ...
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Features
Will the directive affect asset allocation?
This year the directive on institutions for occupational retirement provision (IORP) must be implemented in all EU countries. How will it affect financial markets? The directive may affect asset allocation procedures and outcomes. It requires a cover ratio of 100% at all times (art 15 and 16), it sets quantitative ...
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Features
Back with a bang
After years of near-neglect, asset allocation is now centre stage. The pensions world has (re-) discovered its importance for investment performance, liability matching and risk management. How quickly things can change. Only a few years back the view was widespread that there was not much value added to be gained ...
