News

US - Pension funds have started seeking compensation for losses they suffered during the sub-prime crisis by suing financial institutions which took a hit to their share price as result of their investments.

AUSTRALIA - The creation of a bonds fund, supported by deferred payments from the Higher Education Contribution Scheme (HECS), would provide a secure long term asset for superannuation funds, according to Universities Australia.

NEW ZEALAND - New Zealanders who rushed to join the KiwiSaver scheme may find recent market volatility hard to cope with, the country's retirement commissioner Diana Crossan has warned.

SWITZERLAND - The majority of Swiss pension schemes failed to meet the 2.5% minimum guaranteed interest rate last year, exposing flaws in the Swiss system, according to Watson Wyatt.

MIDDLE EAST - SEI has opened an office in the Dubai International Financial Centre (DIFC) to provide investment solutions to clients in the Middle East.

GLOBAL - The real estate market is offering great rewards to those who get the timing right, but pension funds tempted to make large allocations to the sector have been warned the market may not yet have bottomed out.

UK- The number of pension funds seeking advice due to financially 'stressed' or 'distressed' sponsors is growing, a partner at specialist risk management consultancy Kroll has stated.

AUSTRALIA - A Superannuation Advisory Group has been established by minister for superannuation, Senator Nick Sherry, to provide ongoing consultation between the industry and government.

UK - The record funding surplus of the 200 largest company pension schemes cannot prevent a bleak future, according to Aon Consulting.

UK - The Pensions Regulator has seconded Hewitt Associates consultant Russell Agius, who will focus on delivering the policy framework for the regulator's defined benefit (DB) funding work programme.