Funding improves significantly following combination of rising interest rates and returns on investments
Norway’s giant SWF posts 3.2% return in third quarter
Pension funds report quarterly returns of up to 1.9% and year-to-date results of up to 3.9%
Liabilities increased 9% in 2016, wiping out much of the effect of a 10% average investment return
Expectations for future returns ’significantly’ lower
Rebounding equity markets over the third quarter bolstered year-to-date (YTD) returns at many European pension funds, particularly in the Nordic region.
Fund managers might do better to focus on generating excess return in credit markets than selecting outperforming stocks
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Pension systems everywhere are either struggling to manage the shift from defined benefit (DB) to defined contribution (DC) or contemplating the journey
“The selection of a benchmark is secondary to many other provisions for encouraging long-term behaviour”
“The FCA has picked the wrong fight. We need a way to rate alternative investments”
“At present, UK trustees do not have the right governance framework in place to be effective or accountable”
“Fiduciary management has turned into a sophisticated exercise of managing increasingly complex investment value chains”