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On the institutional side, our continued leadership in pension risk transfer was reinforced through a second transaction with IBM, this time to reinsure $6 billion of pensionliabilities. With this latest transaction, we have now closed seven out of the 10 largest pension risk transfer deals in the US.
Laura Benitez and Nishant Kumar of Bloomberg report hedge funds draw pension money to riskiest corner of a $1.3 Pension plans and insurers have been piling into funds that invest in equity tranches of collateralized loan obligations in recent months, according to several asset managers who spoke on the condition of anonymity.
With nearly half a trillion dollars of assets under management supporting defined benefit and defined contribution plans, PGIM is a market leader, servicing more than half of the world's 300 largest pensionfunds, including over two-thirds of the largest 100 U.S. pension plans, and is the largest pensionfund manager in Japan.
Paula Sambo of Bloomberg reports Canada pensionfund's credit head wants to take advantage of leveraged buyout boom: Canada’s largest pensionfund plans to nearly double the size of its credit holdings over the next five years, and it’s counting on an upturn in leveraged buyouts to generate some of that growth.
The pensionfund had solid returns from its portfolio of public stocks, which gained 10.4 But stocks make up only 19 per cent of the pensionfund’s assets after it shifted billions of dollars from equities into government bonds and credit investments, seeking to take advantage of high interest rates. dollar to earn a 4.4-per-cent
He further explained that the bond portfolio is central to HOOPP’s Liability Driven Investing (LDI) strategy, mitigating the Plan's liability sensitivity to interest rate and inflation changes, providing government-guaranteed returns, supporting other investment activities, and diversifying the Fund's assets. billion. “We
For example, the federal government recently announced it would stop issuing real return bonds – an important liability matching asset for many defined benefit pensions in Canada. Many Canadian pension must now consider non-Canadian alternatives, such as US TIPS. Investors need be prepared for and accept this added risk.
Perhaps most famously you guys put on a CO bet, a collateralized debt obligation bet that was designed to do well if housing made some extreme moves and it was non-directional, it was hedged. So it, it really has and, and pensionfunds, they’re on hold today. I wanted to talk about a couple of trades from that era.
Which is run by many insurance companies, pensionfunds who use Aladdin, and it’s a commercial enterprise for the firm. Didn’t it start as a bond shop, catering to pensionfunds and foundations? I mean, it started as largely mortgages, fixed income bonds shop, and you know, create a closed end funds.
And the Japanese regulators were having a tough time with cross collateralization and issues about whether there were balance sheet accounting issues. So, when you’re describing bespoke strategies, I’m assuming your targeting those future liabilities for each of those — those entities? Is that right?
And the question was if you can find other areas of investment that can generate the types of returns you need for your liability stream, diversification becomes the free lunch. And he said, “Well, it has to be this and that “and it has to be collateralized with a letter of credit.” RITHOLTZ: Fair enough.
In fact, virtually all of our drawdown funds we've launched in our history, have been profitable for our investors. Our performance has helped secure retirees' pensions, fund students educations, pay healthcare benefits, and protect and grow the savings of individual investors. And we have no insurance liabilities.
RITHOLTZ: It’s a liability on the books. MORGENSON: It can be collateralized loan obligations, now it’s big private debt. Pensionfunds, perhaps, maybe aren’t growing as much as they need them to. MORGENSON: Maybe, but still. MORGENSON: But still, it goes to these people. It is money for nothing.
The actuarial change helped cause its funding ratio its assets, compared with its future pension obligations, or liabilities to slip for a second straight year. The plan closed 2024 at a funding ratio of 111 per cent, versus 115 per cent at the end of 2023, and 117 per cent for 2022.
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