Cost-cutting no longer Swiss pension funds’ chief concern – survey

first_imgAccording to the Credit Suisse survey, however, pension funds now believe the issues of diversification and long-term returns are of greater importance than cost-cutting. More than 70% of respondents said diversification was key, even if it increased costs.A case in point is exposure to direct real estate, which entails increased asset management costs yet comprises approximately 19% of pension funds’ portfolios.In its report (in German) on the survey, Credit Suisse says a shift towards direct real estate holdings is “a clear win”, as it reduces risk, increases diversification and offers roughly the same return potential as portfolios with greater bond and equity exposure. Is also argues that a shift towards lower-risk asset classes such as real estate is a reflection of pension funds’ growing concerns over ageing participants.According to the survey, demographics represents the second-largest challenge for Pensionskassen after the long-term low interest rate environment, although Credit Suisse claimed this would have a minor impact on asset allocation compared with regulatory changes and external market factors.Nevertheless, more than 40% of the surveyed pension funds said they would “slightly lower” their exposure to equities due to demographic developments in their membership structure, while 20% said they would do the same for alternatives, with roughly 5% of this group seeking to reduce exposure “significantly”.For more than 50% of respondents, the relatively high conversion rate has exacerbated the Swiss second pillar’s demographic problem. Not surprisingly, more than 80% welcomed the proposal to lower the rate to 6%, as part of the government’s Altersvorsorge 2020 reform proposal, while as much as 70% said they supported the reform package as a whole. Just one-third of Swiss pension funds are currently looking to cut costs, according to a survey by Credit Suisse, which canvassed custodial clients on such issues as costs, reform, asset allocation and demographic trends.Nearly 40% of respondents were of the opinion they had dealt with the issue, while more than 70% said they had already realised their full cost-cutting potential.Cost-cutting has been a major issue in Switzerland in recent months, particularly since the final implementation of a structural reform that sees pension funds now calculating total expense ratios (TERs) for their portfolios.In addition to renegotiating fees and adjusting asset allocations, a number of pension funds – including the BVK, the pensionskasse for the canton of Zurich – are looking to claw back commissions some service providers have received.last_img read more

Dennis Reed Perkins

first_imgDennis Reed Perkins, 72, of Bennington, IN, passed away Wednesday, March 2, 2016 in Lawrenceburg, IN.He was born Saturday, April 10, 1943 in Pine Knot, Kentucky,  son of the late Lewis Green Perkins and the late Mabel Z. Murphy Perkins Fitzpatrick.Dennis served his country as a member of the United States Marine Corps. Dennis was very proud of his military service with the marines, “Semper Fi”.He worked as a supervisor for General Electric, retiring after over 33 years of service.Dennis enjoyed woodworking, gardening and growing fruit trees. He loved the outdoors and his dog Delilah. He enjoyed fishing, “sci fi” movies, war movies, playing pool, spending time with his grandkids and especially giving his wife of 47 years a rough time.Surviving are his wife, Sally Perkins of Bennington, IN.; daughters, Wendy Perkins of Mason, OH, Ginger (Jon) Evans of Dillsboro, IN; sister, Shirley (Glenn) Ketron of Harrison, OH; grandchildren, Jacob Beach, Jobi Evans, Hoyt Evans and Sydney Gilbert.He was preceded in death by his parents and stepfather Edward H. Fitzpatrick.Memorial visitation will be held Tuesday, March 8, 2016 from 3:00-6:00 pm at the Rullman Hunger Funeral Home, Aurora, Indiana.Contributions, in leiu of flowers, may be made to the Dennis Perkins Scholaraship Fund or Ohio County Life Squad. Please call the funeral home office at (812) 926-1450 and we will notify the family of your donation with a card.Visit: www.rullmans.comlast_img read more