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...“Public pension funds have for many years poured money into private equity on the premise that it was high-return and low-risk while illiquidity was deemed not to be an issue,” said Richard Ennis, co-founder...
...Retirement-focused investors have poured more than $20bn into US exchange traded funds that cap gains but limit losses over the past two years, posing a competitive challenge to established offerings from...
...Total net revenue was down 9 per cent in 2023 to $19bn, compared to the year before, as clients moved cash into higher yielding money market fund accounts....
...To be confident their pension money will last through retirement, a saver has conventionally been told to limit withdrawals to 3-4 per cent of the value of the fund each year....
...Most Gen Xers have 401k plan balances that are woefully inadequate to fund a long retirement....
...It also continues to have advantages in specific areas such as small company stocks and retirement savings....
...The result is likely to be a significant decline in mutual fund usage,” wrote Rick Wurster, president of Charles Schwab, the broker and mutual fund sponsor....
...His think-tank has proposed making pension-fund tax advantages dependent on consolidation. Further restructuring will not be easy....
...Many large pension funds currently have more money allocated to private equity than their targets, in part because a slowdown in deals and new listings mean that funds are not returning money as quickly...
...Some of the UK’s biggest pension plans are taking advantage of steep price discounts to snap up real estate and other private assets, as fellow retirement funds put their harder-to-sell holdings on to the...
...“This is money that is invested well, for the long-term,” he said. Individual pension contributions wouldn’t be used to buy stocks and shares, but “money from the state”....
...You’re doing a vital job on behalf of over 2mn current and future retirees, and managing sums of money so vast it would make Croesus weep with envy....
...Charles Schwab reported weaker than expected revenue in the third quarter, as the reverberations of higher interest rates that pushed clients into higher yielding money market funds during the banking crisis...
...By contrast, the amount of cash parked in Schwab money market funds jumped 70 per cent to $477bn during the fourth quarter. Schwab earns a 0.26 per cent fee on these funds....
...the fund and notes from its board meeting....
...The good news is the money is not leaving the Schwab platform. Many clients are moving their uninvested cash out of its low-yielding bank deposit programmes into money-market funds....
...And at retirement a single large pot will attract better annuity rates and access to a wider range of post-retirement options....
...“Our firm’s data advantage, brand advantage, operational advantage . . . is in North America,” he said....
...and savers to understand where this money is invested.”...
...The pot for life model risks members making poor decisions based on the cheapest or best marketed solutions, rather than those offering the best value for money.”...
...the inheritance tax advantages of pensions — you will need to spend the money)....
...By contrast, Schwab’s money fund flows came at the expense of its bank, where it had been holding customer cash balances and earning profits from investing that money....
...Under the proposals, regulators will be given powers to stop poorly performing retirement funds from taking on new workplace pension business....
...How do they make so much money?...
...’s money managers....
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