GLOBAL - Pension funds in emerging market countries have outpaced those in developed countries as they recover from the financial crisis, a report by the Organisation for Economic Co-Operation and Development found (OECD).
The organisation said pensions in non-OECD countries showed a "remarkable recovery" in the first half of 2009 despite suffering steep losses in 2008. The average pension fund investment in Hong Kong, for example, was 12% in the first half of the year. In Peru, returns were among the highest in the world, at 18%.
Pension funds in OECD countries, by contrast, returned an average of 3.5% in the first half of the year.
The OECD said: "The contrasting experience between these non-OECD and OECD countries is to a large extent driven by the quicker recovery experienced by emerging markets. Many non-OECD countries, such as Egypt and Ukraine, also suffered little from the 2008 crisis because of their high exposure to government bonds."
Despite the relatively low average returns of pension funds in the OECD countries, these schemes were able to recover US$1.5trn of the $5.4trn lost in 2008 during the first half of this year.
The OECD said: "For pension funds, the 2009 recovery represents a major step towards healing the wounds caused by the bursting of two major bubbles within the same decade."
The best performing pension funds among those in the OECD countries were Norway and Turkey, both of which touted returns of over 10% in the first half of the year. On the other end of the spectrum, pension funds in the US were up 4% and Australian superannuation funds, up 1% in the first six months.
An analysis of IGC annual reports finds some lacking in information on value for money, costs and charges, and investment performance. James Phillips explores the findings
A new cost transparency solution is being developed for pension schemes by a financial services technology firm.
Supermarket giant Asda's plans to reform its pensions have been decried as "unfair, unreasonable and unnecessary" as the workers' union began talks with the employer.
The Pensions Administration Standards Association (PASA) has launched a checklist to help trustees with the rectification process for guaranteed minimum pensions (GMP).