mast image

Impact Investing

IPE special report May 2018


IMF calls for realistic actuarial measurement

GLOBAL – The International Monetary Fund has called for a more realistic actuarial measurement of pension funding.

“Among the issues in pension accounting that need to be revisited, realistic actuarial assumptions underlying the measurement of funding adequacy are essential,” the IMF says.

But it warned that a rapid change in view could do more harm than good.

“Caution is needed, however, to avoid an immediate large drain on the earnings of companies that could trigger a self-reinforcing decline in equity markets,” it says.

The IMF was also concerned about the lack of transparency and precision in determining private companies’ pension obligations.

“The transparency of these private pension obligations and their funding is limited, so it is difficult to assess their financial conditions with any precision,” the IMF said in a report on the global financial system.

But it was clear, the IMF said, that the weakness in pension funding that has been revealed by falling equity prices has shown up the “mismatch” between pension assets and liabilities.

Have your say

You must sign in to make a comment


Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2435

    Asset class: CLOs.
    Asset region: Global.
    Size: USD 50m.
    Closing date: 2018-05-22.

  • QN-2436

    Asset class: Real Estate - Core Open-ended Real Estate Equity Fund (non-listed).
    Asset region: Asia Pacific.
    Size: Approx. CHF 70-100m per investment.
    Closing date: 2018-05-25.

  • QN-2438

    Asset class: High Yield Bonds.
    Asset region: US.
    Size: USD 300 million.
    Closing date: 2018-05-25.

Begin Your Search Here