Connect with us

U.S. Asset Manager CEOs Criticize Negative Interest Rates

Published

on

As the world economy continues to adjust and expand, asset managers are scratching their heads wondering if central banks went too far in driving into negative interest rate territory. Zero interest rate policy (ZIRP) and negative interest rate policy (NIRP) are central banking tools used to stimulate inflation. Simply put, negative interest rates transfer wealth from savers to borrows – a stealth tax on bank deposits. Six world central banks now have negative interest rates, including the Bank of Japan (BOJ), Sweden’s Riksbank and Swiss National Bank (SNB) have introduced negative interest rate policies in a bid to foster economic activity and raise inflation expectations. These central bankers want their domestic banks to lend more.

“The adoption of negative interest rates poses greater investment risk for asset owners with substantial liabilities, if pursued for the long-term. These policies are impacting the viability of savings institutions such as pensions and life insurers, who are now drifting more into illiquid assets and riskier investment strategies,” says Michael Maduell, President of SWFI.

Asset Manager CEOs Sound Off

[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

ADIA Seeks to Sell KIC Headquarters

Published

on

The Abu Dhabi Investment Authority (ADIA) is seeking to sell the building that houses the headquarters of the Korea Investment Corporation (KIC). [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

BMO and OTPP Test Blockchain Canadian Dollar Debt Deal

Published

on

The Bank of Montreal (BMO) and the Ontario Teachers’ Pension Plan (OTPP) participated in a landmark blockchain Canadian-dollar debt transaction. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

Just Group Acquires Corinthian Pension Consulting

Published

on

Just Group plc acquired a 75% ownership stake in the holding company of Corinthian Pension Consulting Limited (Corinthian Pension Consulting). Operating in the institutional world for over 12 years, Corinthian Pension Consulting provides advisory services to defined-benefit pension scheme trustees and scheme sponsors undertaking bulk scheme exercises. The remaining 25% will be retained by current shareholders of Corinthian Pension Consulting. Robert MacGregor will continue to lead Corinthian Pension Consulting, as its Chief Executive Officer. Furthermore, Corinthian Benefits Consulting Limited and Corinthian Affinity Solutions Limited will continue to operate as before, becoming part of a newly formed holding company, Corinthian Group Holdings Limited.

Continue Reading

Popular

© 2008-2018 Sovereign Wealth Fund Institute. All Rights Reserved. Sovereign Wealth Fund Institute ® and SWFI® are registered trademarks of the Sovereign Wealth Fund Institute. Other third-party content, logos and trademarks are owned by their perspective entities and used for informational purposes only. No affiliation or endorsement, express or implied, is provided by their use. All material subject to strictly enforced copyright laws. Registration on or use of this site constitutes acceptance of our terms of use agreement which includes our privacy policy. Sovereign Wealth Fund Institute (SWFI) is a global organization designed to study sovereign wealth funds, pensions, endowments, superannuation funds, family offices, central banks and other long-term institutional investors in the areas of investing, asset allocation, risk, governance, economics, policy, trade and other relevant issues. SWFI facilitates sovereign fund, pension, endowment, superannuation fund and central bank events around the world. SWFI is a minority-owned organization.