Pension Practitioners Weigh in on Looming Retirement-Income Crisis

Increasing longevity and population aging are global trends that are placing increasing financial strain on social security safety nets as well as employee benefits such as defined benefit (DB) retirement plans. In the U.S., Americans entering retirement are in worse financial shape than the prior generation for the first time since Harry Truman was president, …

Renewable Energy Investments Taking Hold in Institutional Portfolios

Many institutional investors are looking for opportunities to invest in the renewable energy asset class.  That may explain why more than half (54%) of the number of infrastructure deals completed in Q2 2018 were for renewable energy assets, while energy assets and utilities assets each accounted for 11% of all infrastructure deals, according to a …

Paltry Rates Perplex Life Insurers as Pre-Crisis Debt Matures

Investment executives at U.S. life insurance companies continue to lose sleep over identifying the best reinvestment opportunities for maturing debt in which they invested a decade ago. With interest rates much lower now than before the financial crisis, the challenge for life insurers is to find new investment classes that meet their yield requirements without …

Saudi EMI Inclusion Already a Boon to Country-Focused Investors

The announcement at the end of June of the upcoming addition of Saudi Arabia to the MSCI Emerging Market (EM) Index was not only a win for Saudi Arabian companies, but also a win for investors who took advantage of the news to invest in BlackRock’s Saudi Arabia ETF (KSA)—which is up 17% year to date, …

Reports: Pension Funding Up by $23 Billion; Funded Status Flat in June

Milliman, an investment consultant, has released the results of its latest Pension Funding Index, which analyzes the 100 largest U.S. corporate pension plans. In June, these pensions experienced a $23 billion increase in funded status, with the deficit of the Milliman 100 PFI plans falling from $141 billion at the end of May to $118 …

Investors Eye Diversification Potential in Asian Private Debt Mart

Interest in Asian private debt is growing. But while there are opportunities to be had, consultants suggest that investors proceed with caution. “We have observed more interest in Asia private credit than in previous years, as investors look to diversify their credit portfolios and gain access to a region which is regarded as having compelling …

CalSTRS Taps New CFO 

The California State Teachers’ Retirement System has hired Julie Underwood as its chief financial officer. Underwood, who replaces Robin Madsen who retired at the end of March, will start on July 16. Underwood joins CalSTRS from the $9.9 billion San Bernardino County Employees’ Retirement Association, a multiple-employer defined benefit pension plan, where she had been the …

Principal Unveils Retirement Platform to Service Minnows

Principal Financial Group, a Des Moines, Iowa-based investment management firm, service provider of defined benefit (DB) pension plans and defined contribution plans (DC) and an insurance company, with a total of $674 billion in assets under management (AUM), (including over $200 billion in retirement assets) is touting a new platform for retirement plans with assets …