IMF Working Paper-Reform Options for Mature Defined Benefit Pension Plans: The Case of the Netherlands-continued

January 25, 2019--The Netherlands has been operating fully funded, defined benefit second pillar pension schemes that have consistently ranked high worldwide for delivering high replacement rates while featuring strong solidarity among members.
Yet the long-term sustainability of the Dutch pension funds has been undermined in recent years by protracted low interest rates and unfavorable demographic developments, exacerbating controversies over intergenerational transfer mechanisms within the plans. This has prompted a national debate over ways to move toward more individualization while preserving financial security at retirement for all. This paper draws on this experience, illustrated by stress testing simulations and assessed vis-à-vis solutions implemented in peer countries, to discuss the main policy trade-offs associated with the reform of mature pension systems in advanced economies.

view the IMF Working Paper-Reform Options for Mature Defined Benefit Pension Plans: The Case of the Netherlands

Source: IMF


Europe ETP News
New iShares ETF on Xetra: Investment in the Chinese Stock Market
June 25, 2019--A new iShares ETF is tradable on Xetra and Börse Frankfurt since Tuesday.
The iShares MSCI China UCITS ETF offers an investment in the performance of high and mid cap companies of the Chinese stock Market.
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Tabula brings five ETFs to BX Swiss
June 24, 2019--Tabula Investment Management has entered the Swiss market by launching five ETFs on the BX Swiss exchange, giving investors access to products targeting credit, high yield credit and volatility risk premia.
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STOXX wins multi-billion landmark deal with four German pension funds for sustainable, climate-friendly global index solutions
June 24, 2019--STOXX Ltd., the operator of Deutsche Boerse Group's index business and a global provider of innovative and tradable index concepts, has won a request for proposal to license four low-carbon sustainability indices to the pension funds of four states in Germany: Baden-Wuerttemberg, Brandenburg, Hesse, and North Rhine-Westphalia.
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UK equity income funds suffer 18.4bn pounds of net outflows
June 23, 2019--The funds often invest in sectors such as energy, pharma and consumer goods, industries perceived as reliable in returning profits to shareholders.
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New Vanguard ETFs on Xetra: Global Bonds
June 21, 2019--Since Thursday two new Exchange Traded Funds from Vanguard are tradable via Xetra and Börse Frankfurt.
The Vanguard Global Aggregate Bond UCITS ETFs offer an investment in the performance of global government and corporate bonds with a maturity of at least one year.
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Swiss-EU bourse battle breaks out over stalled treaty
June 21, 2019--Investors in the European Union and Switzerland will lose direct access to each others' stock exchanges from July 1 in an escalating row over a stalled partnership treaty.
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ESMA Agrees Position Limits Under MIFID II
June 20, 2019--The European Securities and Markets Authority (ESMA) has published today three opinions on position limits regarding commodity derivatives under the Markets in Financial Instruments Directive and Regulation (MiFID II/MIFIR).
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New research by BETTER FINANCE on the Correlation between Costs and Performance of EU Retail Equity Funds without a doubt establishes a negative correlation between returns and fees
June 20, 2019--Common knowledge has it that if you want to beat the market, you need to turn to highly active management...at a price.
As part of its #FundResearch series, BETTER FINANCE decided to put this notion to the test and take a closer look at the main factors impacting fund performance and the ability to deliver above-market returns, with a special focus on costs.
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Vanguard launches aggregate bond ETF in Europe
June 20, 2019--Vanguard has launched a new fixed income ETF in Europe which provides broad and diversified exposure to investment grade bonds across multiple sectors and segments from both developed and emerging market issuers.
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Unscheduled adjustment in SDAX
June 19, 2019--Hapag-Lloyd AG to be deleted from the index, DMG MORI AG to be added
On Wednesday, Deutsche Börse announced an unscheduled change to SDAX. The free float of Hapag-Lloyd AG has decreased from 10.59 per cent to 8.72 per cent.
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Deutsche Bank seeks to shed risky assets as part of overhaul: sources
June 19, 2019--Deutsche Bank is aiming to cut up to a quarter of its riskiest assets in the next few years, people familiar with the matter said, shedding more light on how the German lender is trying to overhaul its business and revive profitability.
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Forecasts for the UK economy: June 2019
June 19, 2019--Forecasts for the UK economy is a monthly comparison of independent forecasts.
Please note that this is a summary of published material reflecting the views of the forecasting organisations themselves and does not in any way provide new information on the Treasury's own views.
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Invesco expands ETF range with three ESG products
June 19, 2019--'Passive holdings still making an active difference'
The new ETFs will track indices where stock weightings are determined by each company's ESG score, rather than size alone.
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Vanguard trades blows in fund fee war with M&G.
June 19, 2019-Cut-throat competition escalates in UK investment market.
The fee for the Vanguard Global Balanced fund, which holds a mix of equities and bonds, has also been cut from 60bp to 48bp.
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Deutsche Bank reportedly plans revamp with 50EURO B "bad bank"
June 17, 2019--Deutsche Bank plans to place some €50 billion in assets, comprised mostly of long-dated derivatives, into a "bad bank" and slash its non-EU equity and rates trading, sources say.
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Uncertainty over output gap and structural-balance estimates remains elevated
June 17, 2019--The EU fiscal framework strongly relies on the structural budget balance indicator, which aims to measure the 'underlying' position of the budget. But this indicator is not observed, only estimations can be made. This post shows that estimates of the European Commission, the IMF, the OECD and national governments widely differ from each other and all estimates are subject to very large annual revisions.
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Making the Euro Area More Resilient Before the Next Recession Hits
June 17, 2019--Growth in the euro area rebounded earlier this year, but it remains fragile, while risks have increased. Now is a good time for euro area economies to strengthen their ability to weather any future economic difficulties.
A new IMF staff paper looks at the resilience of euro area countries and finds that they have had more frequent and severe recessions than other advanced economies over the past 20 years.
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ESMA Publishes 2018 Annual Report
June 17, 2019--The European Securities and Markets Authority (ESMA) has published its Annual Report, which reviews its achievements against its 2018 priorities and objectives in meeting its mission of enhancing investor protection and promoting stable and orderly financial markets in the European Union.
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Monday Morning Memo: Review of the European ETF Market, May 2019
June 17, 2019--The promoters of ETFs in Europe enjoyed net inflows for May. Despite these, the assets under management in the European ETF industry decreased due to the negative performance of the underlying markets. In more detail, the assets under management in the European ETF industry decreased from €746.7 bn as of April 30, 2019, to €721.6 bn at the end of May.
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New SPDR ETFs on Xetra: US government bonds and smart beta investment each with currency hedging
June 17, 2019--Since Monday two new Exchange Traded Funds issued by State Street Global Advisors are tradable via Xetra and Börse Frankfurt.
The SPDR S&P U.S. Dividend Aristocrats EUR Hdg UCITS ETF (Dist) allows investors to participate in the performance of US shares with high dividend payments. The Smart-Beta-ETF weights these shares based on the respective income levels and is tradable as a distributing and currency-hedged share class.
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ESMA Updates Q&A On EMIR Data Reporting
June 14, 2019--The European Securities and Markets Authority (ESMA) has issued today an update of its Q&A on practical questions regarding the European Markets Infrastructure Regulation (EMIR).
The Q&As provide further clarity regarding the implementation of EMIR Refit with respect to:
Q&A OTC 3 on the calculation framework towards the clearing thresholds; and
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EU tries to revive plan for financial transaction tax
June 14, 2019--European Union finance ministers have discussed on Friday a plan for a 0.2% tax on shares, which Germany sees close to be agreed, although further work remains to be done.
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Euro Area-IMF Staff Concluding Statement of the 2019 Article IV Mission
June 13, 2019-- The euro area is at a challenging juncture. Growth is expected to firm-up later this year but there are significant risks to this outlook. Greater structural reforms efforts at the national level would enhance the region's resilience. In the event of a sharp downturn additional policy support will be needed. While there is some progress on euro area reforms, in many cases political consensus on the path forward is missing.
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ESMA updates register of derivatives to be traded on-venue under MiFIR
June 13, 2019--The European Securities and Markets Authority (ESMA) has updated today the public register of those derivative contracts that are subject to the trading obligation under the Markets in Financial Instruments Regulation (MiFIR).
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Euro area securities issues statistics: April 2019
June 13, 2019--The annual growth rate of the outstanding amount of debt securities issued by euro area residents was 2.3% in April 2019, compared with 2.4% in March.
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New UBS ETF on Xetra: Emerging market companies with focus on sustainability
June 13, 2019--Since Thursday, a new Exchange Traded Fund from UBS Global Asset Management has been tradable via Xetra and Börse Frankfurt.
With the UBS ETF-MSCI Emerging Markets Socially Responsible UCITS ETF, investors can participate in the performance of emerging market companies that are rated high in terms of environmental, social and entrepreneurial good conduct. Companies that violate moral, religious and ethical criteria are excluded. In the benchmark index, individual shares are limited to a maximum share of 5 per cent.
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New Vanguard ETF on Xetra: US corporate bond with investment grade rating
June 13, 2019--Since Thursday a new Vanguard Exchange Traded Fund is tradable via Xetra and Börse Frankfurt.
The Vanguard USD Corporate Bond UCITS ETF-(USD) offers an investment in the performance of US corporate bonds.
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CryptoCompare Launches Exchange Benchmark in Response to Concerns Over False Volume Reporting
June 12, 2019--London-based crypto data provider CryptoCompare has launched an Exchange Benchmark product that ranks over 100 crypto spot exchanges worldwide. The news was revealed in a press release shared with Cointelegraph on June 12.
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IMF Executive Board Concludes 2019 Article IV Consultation with Norway
June 12, 2019--On June 10, 2019, the Executive Board of the International Monetary Fund (IMF) concluded its 2019 Article IV consultation [1] with Norway.
Norway's economic momentum remains strong, supported by higher oil prices, competitiveness gains stemming from the weaker krone, and a robust labor market.
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IMF Departmental Papers/Policy Papers-Trade Tensions, Global Value Chains, and Spillovers: Insights for Europe
June 12, 2019--Summary:
Europe is deeply integrated into global value chains and recent trade tensions raise the question of how European economies would be affected by the introduction of tariffs or other trade barriers.
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Norway's Economic Outlook in Seven Charts
June 12, 2019--Norway's economy has performed well over the past year, especially compared to its neighbors. It is enjoying low unemployment and a broadly neutral budget, while its economy continues to grow. Given its strong momentum, now would be the ideal time for the country to address long-term challenges, suggests the IMF in its latest assessment of the Norwegian economy.
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Ossiam lists low carbon ESG ETF on LSE
June 11, 2019--Ossiam, the affiliate of Natixis Investment Managers, has launched its US ESG Low Carbon Equity Factors Ucits ETF on the London Stock Exchange.
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New UBS ETF on Xetra: Companies worldwide
June 11, 2019--A new Exchange Traded Fund from UBS Global Asset Management has been available for trading on Xetra and Börse Frankfurt since Tuesday.
With the UBS (Irl) ETF plc-MSCI World UCITS ETF (USD) A-acc, investors have access to the stocks of the MSCI World Index, which tracks the performance of large and medium-sized companies from 23 industrialised countries.
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ESMA to address regulatory concerns over Frequent Batch Auctions
June 11, 2019--The European Securities and Markets Authority (ESMA) has today published its Final Report on Frequent batch auctions (FBAs). ESMA identified four main characteristics of FBA trading systems through its call for evidence and intends to issue supervisory guidance on pre-trade transparency and on the price determination process of FBAs.
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New EU shareholders' rights rules enter into force
June 10, 2019--The new Shareholder Rights Directive, which entered into force on Monday, addresses corporate governance shortcomings that contributed to the financial crisis, says the EU Commission.
Under the revised Directive, institutional investors and asset managers are required to be transparent about their investment and engagement policy, and to disclose how they take social and environmental impact into account.
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Monday Morning Memo: Fund Closure-The Hidden Risk of Mutual Funds
June 10, 2019--The news about the closure of the Woodford Income Fund hit the U.K. fund market quite hard-and a number of market observers made this event big news-but the reality is the closure of a fund is nothing unusual. This kind of corporate action happens frequently and is a protection mechanism which is stated in the fund prospectus.
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Modest Growth Ahead for Russia, but Opportunities to Boost Formal Employment, Says World Bank
June 10, 2019--Real GDP growth in Russia surpassed expectations in 2018, reaching 2.3 percent, mostly due to the one-off effects of energy construction. Growth forecasts of 1.2 percent in 2019 and 1.8 percent in both 2020 and 2021 reflect a more modest outlook, in line with Russia's current potential growth of about 1.5 percent, says the World Bank's latest Russia Economic Report (#41 in the series).
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New iShares ETF on Xetra: shares worldwide with currency hedging
June 7, 2019--Since Friday a new Exchange Traded Fund of iShares is tradable via Xetra and Börse Frankfurt.
The iShares Core MSCI World UCITS ETF EUR Hedged (Dist) offers an investment in the global MSCI World Index, which tracks the performance of large and medium-sized companies from 23 industrial countries. Currency fluctuations of individual stocks to the euro are minimised.
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New Active ETFs from Ossiam on Xetra: Focus on companies with low CO2 emissions
June 6, 2019--The two share classes of the Ossiam US ESG Low Carbon Equity Factors UCITS ETFs offer an actively managed ESG investment in US equities selected according to sustainability criteria. Both investment products select their components based on economic, social and environmental sustainability.
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Dramatic clamp down on peer-to-peer investing in major blow to lenders
June 6, 2019-A week after a prominent lender calls in administrators, regulators limit maximum investments in a bid to protect investors
You've seen the adverts. In fact, with the surprisingly high interest rates seemingly on offer, you'd be forgiven for doing a double take.
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European Semester 2019 Spring Package: Commission issues recommendations for Member States to advance sustainable and inclusive economic growth
June 5, 2019--The European Commission presents today the 2019 country-specific recommendations (CSRs), giving economic policy guidance to all EU Member States for the next 12 to 18 months. The Commission also recommends closing the Excessive Deficit Procedure for Spain and adopts a number of documents under the Stability and Growth Pact.
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New Franklin ETFs on Xetra: Focus on trend regions Brazil, China and Korea
June 5, 2019--Three new Franklin Templeton ETFs have been tradable on Xetra and Börse Frankfurt since Wednesday.
The new equity ETFs offer an investment in the performance of the three investment regions Brazil, China and Korea.
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National Statistics: UK official holdings of international reserves: May 2019
June 5, 2019--This release details movements in the international reserves of gold and assets held by the UK government.
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Star Manager Woodford Halts Fund's Redemptions
June 5, 2019--Suspending redemptions highlights problems of holding hard-to-sell assets when investors pull money out quickly
One of the U.K.'s best known money managers has suspended redemptions from his main £3.7 billion ($4.69 billion) fund, drawing fresh attention to the dilemma for investment firms that promise investors they can quickly cash out of funds that hold hard-to-sell assets.
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Grenke AG new joiner in MDAX
June 5, 2019--On Wednesday, Deutsche Börse announced changes to its selection indices, which will become effective on 24 June 2019. The shares of Grenke AG will be included in the MDAX index and will replace the shares of Wacker Chemie AG, which will be included in the SDAX index. The exclusion is based on the fast-exit rule.
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ESMA Publishes Updated AIFMD and UCITS Q&AS
June 4, 2019--The European Securities and Markets Authority (ESMA) has published updated questions and answers documents (Q&A) on the application of the Alternative Investment Fund Managers Directive (AIFMD ) and the Undertakings for the Collective Investment in Transferable Securities (UCITS ) Directive.
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New BNP Paribas Easy-ETF on Xetra: Global companies with a strong focus on sustainability
June 4, 2019--A new Exchange Traded Fund issued by BNP Paribas Easy has been tradable on Xetra and Börse Frankfurt since Tuesday.
The BNP PARIBAS EASY ECPI Circular Economy Leaders offers investors the opportunity to participate in the performance of the world's 50 leading companies in terms of ESG ratings and the positive contribution to sustainable economic activity.
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Austrian Traded Index (ATX): New free float factors for BAWAG Group and Erste Group Bank
June 4, 2019--The Vienna Stock Exchange announces new free float factors for Austrian indices, following the quarterly review of the calculation parameters. Within its leading national index ATX, the free float factor of BAWAG Group AG rises from 0.4 to 0.5, following Cerberus' sale of a large block of shares.
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ESMA publishes a supervisory briefing on pre-trade transparency requirements in commodity derivatives
June 3, 2019--The European Securities and Markets Authority (ESMA) has today published a Supervisory Briefing to ensure compliance with the MiFIR pre-trade transparency requirements in commodity derivatives.
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ESMA updates MiFID II Q&As on transparency issues
June 3, 2019--The European Securities and Markets Authority (ESMA) has today updated its Questions and Answers (Q&As) regarding transparency issues under the Market in Financial Instruments Directive (MiFID II) and Regulation (MiFIR).
The updated Q&As provide clarification on the following topics:
The mandatory systematic internaliser (SI) regime;
The voluntary SI regime; and,
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Boerse Stuttgart records May turnover of EUR 6,3 billion
June 3, 2019--Based on the order book statistics, Boerse Stuttgart generated turnover of around EUR 6,3 billion in May 2019 – an increase of around 13 per cent compared to the previous month. Securitised derivatives made up the largest share of the turnover.
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Monday Morning Memo: Is the European Investment Industry in a Crisis?
June 3, 2019--A look at the fund flows in Europe for the year 2019 so far (-€73.0 bn) reveals that the European fund industry faces another difficult year. In more detail, April 2019 marked the twelfth consecutive month with outflows from long-term mutual funds.
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London Stock Exchange Group acquires Beyond Ratings
June 3, 2019--Beyond Ratings is a highly regarded provider of Environmental, Social and Governance (ESG) data for fixed income investors
Acquisition enhances the existing ESG index, data solutions and analytics offering within LSEG's Information Services business
Complements flagship FTSE World Government Bond Index (WGBI) and The Yield Book fixed income analytics capabilities
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A European atlas of economic success and failure
June 3, 2019--Economic growth was diverse across EU regions, yet it is crucial to control for region-specific factors in assessing growth performance. We find that there are rather successful regions in many EU countries, suggesting that the EU can provide a good framework for growth. Yet the worst performers are more concentrated in some countries, suggesting that country-specific factors can play a major role in regional development.
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Cash markets achieve turnover of 146.0 billion euros in May
June 3, 2019--Deutsche Börse's cash markets generated a turnover of €146.0 billion in May (previous year: €145.8 billion).
Of the €146.0 billion, €131.4 billion were attributable to Xetra (previous year: €134.1 billion), bringing the average daily Xetra trading volume to €6.0 billion.
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The Spanish Exchange traded EURO40.13 billion in May
June 3, 2019--It represents a 18.2% decrease from April, although the number of trades increased by 4.5%
Fixed Income trading volume increased 36.7% to 29.63 billion euros year-on-year
The trading volume in Financial Derivatives increased by 9% in the first five months of the year
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France: Staff Concluding Statement of the 2019 Article IV Mission
June 3, 2019--France's growth has slowed but remains resilient and job rich, in part reflecting important labor-market and tax reforms implemented in recent years. But external risks have risen, and France's structural challenges persist: high public and private debt, still high structural unemployment, sluggish productivity growth, and inequality of opportunity.
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ULTUMUS hires Mr Index-Femi Orangun
June 2, 2019--ULTUMUS, the leading global provider of data creation, management and distribution services for index and ETF products, today announced the hire of industry veteran Femi Orangun to its team of index and ETF specialists.
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Europe leads the $31tn charge on sustainable investing
May 31, 2019--Assets flood into ETFs designed to address matters like climate change and child labour
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S7P Dow Jones Indices-Index Dashboard: Europe
May 31, 2019--Declining global growth expectations and an escalation in trade wars sent equity markets into reverse gear this month. The S&P Europe 350 dropped 5%, giving up all of April’s gains and moving into the red for Q2. It's not all bad: the European benchmark can still boast of a 12% year-to-date total return.
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GPW Launches WIGtech Index
May 30, 2019--GPW is launching WIGtech index as of 24 June 2019
The index covers high-tech companies listed on the Main Market active in biotechnology, games, IT, telecommunication, and new technologies
The index may in the future be the underlying of financial instruments including futures
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ESMA updates Q&AS on MiFID II and MiFIR investor protection and intermediaries
May 29, 2019--The European Securities and Markets Authority (ESMA) has today updated its Questions and Answers on the implementation of investor protection topics under the Market in Financial Instruments Directive and Regulation (MiFID II/ MiFIR).
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STOXX extends its suite of ESG-X indices
May 29, 2019--STOXX Ltd., the operator of Deutsche Boerse Group's index business and a global provider of innovative and tradable index concepts, has launched a series of new benchmark ESG-X indices, such as an ESG-X version of the flagship EURO STOXX 50(R) Index.
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New Lyxor ETF on Xetra: Chinese A Shares
May 29, 2019--A new Exchange Traded Fund issued by Lyxor International Asset Management has been tradable on Xetra and Börse Frankfurt since Wednesday.
The Lyxor Hwabao WP MSCI China A (DR) UCITS ETF offers an investment in the performance of Chinese large and mid cap companies.
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ETFGI reports assets invested in the European ETF and ETP industry reached a record US$882.20 billion at the end of April 2019
May 29, 2019--ETFGI, a leading independent research and consultancy firm covering trends in the global ETF/ETP ecosystem, reported today that ETFs and ETPs listed in Europe gathered net inflows of US$3.95 billion in April, bringing year-to-date net inflows to US$35.54 billion.
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FESE Blueprint:'Capital Markets Union By 2024-A Vision For Europe'
May 29, 2019--Today, FESE launched its FESE Blueprint: 'Capital Markets Union by 2024- A vision for Europe' which sets out 20 Principles and Policy Recommendations on how to take the Capital Markets Union (CMU) forward.
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Algebris launches new fund targeting jumps in volatility
May 28, 2019--Algebris Investments, a $12bn-in-assets hedge fund based in London, has launched a new vehicle designed to profit from a growing tide of computer-driven traders targeting volatility, which some analysts argue has made markets more turbulent.
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ESMA updates its Questions and Answers on the Securitisation Regulation
May 27, 2019--The European Securities and Markets Authority (ESMA) has today updated its Questions and Answers (Q&As) on the Securitisation Regulation (Regulation 2017/2402).
This document provides clarification on different aspects of the templates contained in ESMA's draft technical standards on disclosure requirements.
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Nasdaq Withdraws Offer to Acquire Shares of Oslo Bors VPS
May 27, 2019--Nasdaq AB, an indirect subsidiary of Nasdaq, Inc. (Nasdaq: NDAQ), has decided to withdraw its offer (the "Offer") to acquire all of the issued shares of Oslo BØrs VPS Holding ASA made pursuant to the offer document published on 4 February 2019 (as amended).
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Monday Morning Memo: European Investors shy away from mutual funds in April
May 27, 2019--The negative fund flows trend in Europe continued in April as the securities markets showed a volatile, but positive, trend. As a consequence, April was the twelfth month in a row long-term mutual funds posted net outflows after 16 consecutive months of net inflows.
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