Tag Archives: pensions
Pension Fund Industry in Mexico: Analyzing the S&P/BMV Mexico Target Risk Index Series across Different Economic Crises
It is unnecessary to give an update on today’s economic situation since most already have a wealth of information over the repercussions of the COVID-19 pandemic. I will instead focus on another major concern: how have pension funds performed, and furthermore, are there similarities in how they have performed during other crises? After the S&P/BMV…
- Other Tags
Ways To Avoid Getting Pink-Slipped In Retirement
Maybe you can’t technically get fired after retiring, but running out of income in retirement is a real risk many people fear. According to TIAA, 49% of Americans say their No. 1 goal for a retirement plan is to provide guaranteed monthly income in retirement, and 68% of Americans would first choose a retirement paycheck that…
- Categories Equities, Fixed Income, Strategy
- Other Tags
Does the S&P/BMV Mexico Target Risk Index Series Provide Inflation Protection?
As of Dec. 31, 2017, the year-over-year change in inflation for Mexico registered at 6.77%, a figure that raised concerns within the pension fund industry. One of the key risks facing retirees is the erosion of purchasing power of investment returns due to high inflation. Developing economies, such as Mexico, are more susceptible to rising…
- Categories Strategy
- Other Tags
- Categories
- Strategy
- Other Tags
Unconventional Sources of Retirement Income
The three pillars of conventional retirement income are social security retirement benefits, pensions from employment, and personal savings. There are, however, other potential sources of retirement income that are not mentioned often enough. These include (a) the cash value of one’s whole life insurance policy, (b) the home equity value of one’s residence, and (c)…
- Categories Uncategorized
- Other Tags
- Categories
- Uncategorized
- Other Tags
Hedging Geopolitical Risk With Oil
This morning, I woke up to the headline Oil just spiked again, on news Saudi Arabia is bombing rebel positions in Yemen. It was the perfect reminder of a call I had earlier in the week from a large pension looking for an oil index to hedge geopolitical risk. After the call, my colleague asked, “Why would…
- Categories Commodities
- Other Tags
- Categories
- Commodities
- Other Tags
Don’t Put All Your Eggs In One Basket
It’s a little late for an Easter post but this saying is about one of the key investment principles, diversification. Simply put, diversification happens when assets inside your portfolio move in opposite directions. The investment measure of diversification is correlation and it can range from -1.0 to +1.0. If correlation is -1.0 between two assets,…
- Categories Commodities, Equities, Fixed Income
- Other Tags
Passive Pensions
We read this morning that the California Public Employees’ Retirement System (CalPERS) is considering increasing its commitment to passive equity vehicles. This follows, by less than two weeks, a study suggesting that public pension funds generally could improve their performance by doing exactly what CalPERS is reported to be considering. Of course whenever you speak about…
- Other Tags
A safer bet?
http://www.pensionsage.com/pa/a-safer-bet.php Read the article in PensionsAge by Peter Carvill, looking at the shifting commodities landscape. In recent decades, investment by pension funds into commodities has been seen as something approaching what may be described as a way to counter-balance the risks from traditional stocks and bonds. As The Role of Commodities in an Institutional Portfolio states:…
- Categories Commodities, S&P 500 & DJIA
- Other Tags
- Categories
- Commodities, S&P 500 & DJIA
- Other Tags