Netherlands, Australia, Sweden, and Canada Top Global Pension Index

(October 22, 2009) – The Netherlands, Australia, Sweden, and Canada—in that order—have scored the highest in a new national pension assessment conducted by the Melbourne Centre for Financial Studies and Mercer Consulting.

According to the Melbourne Mercer Global Pension Index, these four countries all received a “B” grade, categorized as “a system that has a sound structure, with many good features, but has some areas for improvement.” None of the pension systems assessed—of which there were 11—received a grade of “A.”

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The assessment was weighted 40% toward adequacy (whose indicators included benefit levels and design, and tax support), 35% toward sustainability (funding levels and demographics), and 35% integrity (governance and risk protection). The studies’ top scorer, The Netherlands, received scores (out of 100) of 80.5, 62.5, and 88.2, respectively.

In the “C” category—defined by scores between 50 and 65 on the Melbourne Mercer scale—were the United Kingdom, United States, Chile, and Singapore. In the “D” category were Germany, China, and Japan—with its massive defined benefit pension system, including the world’s largest plan—coming in last, gaining a score of 41.5 out of 100. No plans scored in the lowest “E” section

The full survey can be found here .

To contact the <em>aiCIO</em> editor of this story: Kristopher McDaniel at <a href='mailto:kmcdaniel@assetinternational.com'>kmcdaniel@assetinternational.com</a>

(October 22, 2009) – Venture capital firms—often heavily backed by pension and endowment funds—did smaller deals, but not fewer ones, in a third quarter (Q3) marked by weak fundraising results.

According to Dow Jones VentureSource, third quarter investments by venture capital firms—often heavily backed by pension and endowment funds—were down to $5.1 billion from $5.4 billion in the second quarter (Q2) of this year. However, more deals were done in Q3 (616) than in Q2 (595), an indication that funds are still actively seeking out deals, whatever the size. The investments, however, are more likely to be in later-stage, more established companies.

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The deal number figures—as opposed to deal size—also hold up well compared to Q3 2008. Although slightly down from 663 in that time frame, the number of deals holds up well next to the $3.1 billion drop in deal size, which amounts to approximately a 35% fall.

This fall in deal size is likely the result of poor fundraising results. According to the report, venture investments from limited partners are at their lowest point since 2003; only $3.5 billion was raised in Q3, and $8 billion all year. This figure is well below the $18.9 billion raised in the first nine months of 2008.

“The slow recovery we’ve seen for venture capital has faltered,” Jessica Canning, Director of Global Research for Dow Jones VentureSource, said in the report. “As liquidity and fundraising lag after the economic meltdown in 2008, investors have no choice but to keep a tight rein on investments until the industry is on more solid ground.”

To contact the <em>aiCIO</em> editor of this story: Kristopher McDaniel at <a href='mailto:kmcdaniel@assetinternational.com'>kmcdaniel@assetinternational.com</a>

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