Milliman has released its 2024 year-end Multiemployer Pension Funding Study, analyzing the funded status of U.S. multiemployer defined benefit plans.
“Strong returns during the first and third quarters of 2024 largely drove the year’s significant rise in the aggregate funded percentage, which reached the second-highest point since Milliman launched this study in 2007,” said Tim Connor, MPFS co-author.
By December 31, 2024, the aggregate funded percentage of multiemployer plans increased by 97%, up from 89% in 2023 – the second-highest level since the study began in 2007. This improvement is driven by strong investment performance, estimated at 10%, and nearly $70 billion in Special Financial Assistance provided under the American Rescue Plan Act. Of this total, $16 billion was distributed in 2024 alone. Without SFA, the funded percentage would have remained at 89%.
Among the 1,193 plans analyzed, 53% are fully funded, while 84% have reached at least 80% funding. However, 7% remain below 60% and may face insolvency. Many of these plans are expected to apply for SFA in 2025.
“We now see more than half of all plans funded 100% or better as they continue their trend of upward improvement in funded percentage,” added Connor.
CEO confidence surged in the first quarter of 2025, reaching its highest level in three years. The Conference Board Measure of CEO Confidence, in collaboration with The Business Council, increased by 9 points to 60, a shift from the cautious optimism seen throughout 2024. For the first time since early 2022, the measure exceeded 50, signaling a positive outlook among CEOs. A total of 134 CEOs participated in the survey, which was conducted from January 27 to February 10.
“All components of the Measure improved, as CEOs were substantially more optimistic about current economic conditions as well as about future economic conditions – both overall and their own industries,” said Stephanie Guichard, Senior Economist, Global Indicators, The Conference Board.
Regarding employment, 73% of CEOs indicated they planned to maintain or grow their workforce over the next 12 months, unchanged from the previous quarter. However, the share of CEOs expecting to expand their workforce fell to 32%, down from 40% in Q4, while 41% planned to keep their workforce steady, up from 34%. Additionally, 27% of CEOs anticipated reducing their workforce, a slight increase from the previous quarter.
“Compared to Q4 2024, fewer CEOs ranked cyber threats, regulatory uncertainty, financial and economic risks, and supply chain disruptions as high-impact risks,” said Roger W. Ferguson, Jr., Vice Chairman of The Business Council and Chair Emeritus of The Conference Board.
On the wage front, 71% of CEOs plan to raise salaries by 3% or more, up from 63% last quarter. Of those, 60% expect to increase wages by 3.0 – 3.9%, up from 48%. Work arrangements continued to evolve, with the most common model being 3-4 days in the office. The share of CEOs planning to shift away from remote work toward in-office schedules in the next 12-18 months has increased.
CEOs’ assessment of general economic conditions was significantly more positive in Q1 2025. 44% of CEOs reported that economic conditions were better than six months ago, up from just 20% in Q4. Only 11% said conditions were worse, a sharp drop from 30% last quarter. The outlook for their industries was also improved with 37% reporting better conditions, up from 21%.
The increase in CEO confidence was also reflected in capital spending. While 54% of CEOs indicated no changes to their plans, 33% in Q4. Similarly, 52% expect conditions in their own industries to improve, up from 31%.
The first quarter of 2025 marks a significant shift in CEO sentiment, with widespread optimism about the economy, industries, and future growth prospects.
Amundi U.S. recently commemorated significant anniversaries for two funds focused on Insurance-Linked Securities and Catastrophe Bonds. These markets have experienced rapid growth, offering investors valuable diversification and alternative income opportunities within the fixed-income space.
“We have been pleased with investor reception for this asset class and acknowledgment of potential investment benefits of allocating to the market segment,” said Jonathan Duensing, Head of Fixed Income at Amundi U.S.
The Pioneer CAT Bond Fund reported an annualized total return of 14.44% as of January 31, 2025. The fund now manages assets exceeding $700 million. Its performance has remained consistently strong, with a one-year return of 14.23% and a six-month return of 9.13%. This performance highlights the growing demand for catastrophic bonds, a sector increasingly viewed as an attractive fixed-income alternative.
The Pioneer ILS Interval Fund achieved an annualized total return of 5.21% through January 31, 2025. The fund currently manages $652 million in assets. Over the past year, it delivered a return of 15.81%, while its five-year annualized return stands at 8.34%. These results underscore the value of ILS as a means of portfolio diversification and a reliable alternative income source.
“We continue to believe both of these differentiated fund offerings are attractive options for investors seeking alternative income solutions,” said Chin Liu, Director of Insurance-Linked Securities and Fixed Income Solutions at Amundi U.S.
Pioneer CAT Bond Fund
Cumulative Returns
1 – month: 0.46%
3-month: 3.03%
6 months: 9.13%
Average Annual Total Return
1-year: 14.23%
Since Inception in 1/26/2023: 14.44%
Gross Expense Ratio: 2.12% / Net Expense Ratio: 1.51%
Pioneer ILS Interval Fund
Cumulative Returns
1-month: 1.34%
3-month: 2.50%
6-month: 7.58%
Average Annual Total Return
1-year: 15.81%
5-year: 8.34%
10-year: 5.24%
Since Inception on 12/17/2014: 5.21%
Expense Ratio: 1.95%
With favorable market conditions, Amundi U.S. is well-positioned to continue its leadership in the ILS and CAT bond markets. The increasing demand for alternative investment solutions, coupled with the continued growth of these sectors, offers investors compelling opportunities for portfolio diversification and enhanced income.
Vanguard has launched two new fixed-income ETFs designed to provide investors efficient, low-cost exposure to U.S. Treasury securities. The Vanguard Ultra-Short Treasury and 0-3 Month Treasury Bill ETF offer short-duration options for investors seeking flexibility and liquidity in their portfolios.
“These products serve as valuable tools for advisors and investors to build more precise and flexible portfolios, bridging the gap between money market funds and existing ultra-short-term bond offerings in the ETF wrapper,” said Sara Devereux, Global Head of Vanguard Fixed Income Group
The new ETFs will be managed by Josh Barrickman, Co-Head of Vanguard’s Fixed Income Group Indexing in the Americas.
VGUS will track the Bloomberg Short Treasury Index, focusing on Treasuries with maturities under 12 months, while VBIL will track the Bloomberg U.S. Treasury Bills 0-3 Months Index. Both funds feature an expense ratio of 0.07%, positioning them as low-cost leaders.
Managing over $2.5 trillion globally, Vanguard Fixed Income Group will advise the new ETFs, continuing its legacy of low-cost, efficient bond indexing.
Despite Donald Trump’s return to the White House and the rise of right-wing parties in Europe, asset managers remain optimistic about the outlook for sustainable investment this year. So far, sustainable investment funds have shown significant growth in recent years. According to 2023 data, these funds reached approximately €500 billion in assets under management, with Europe accounting for 84% of this total—around €420 billion.
How Do Investment Firms View 2025?
According to Pascal Dudle, Head of Thematic and Impact Investing at Vontobel, sustainability will remain important despite challenges posed by recent political shifts. It will be driven by companies maintaining their commitment for reasons ranging from economic opportunities to risk management.
“A key example of this was the unexpected yet encouraging support from ExxonMobil’s CEO during COP29 in November, urging incoming President Trump not to exit the Paris Agreement and to keep the U.S. Inflation Reduction Act (IRA) intact. 2025 will also see continued investor scrutiny of the myriad ESG approaches being offered, with stricter strategies, such as impact investing, likely among the winners,” says Dudle.
He also believes that energy transition is here to stay, as clean technologies are now economically viable, scalable, and come with limited technological risk. “The need for reliability and resilience should, in particular, drive investments in infrastructure, such as increasing investment in power grids to ensure their reinforcement and modernization,” he adds.
Trump’s Challenge to Sustainable Investment
While investors—and Europe—continue their shift towards sustainability, the Trump administration has taken a different path. His first term was marked by rollbacks in environmental protections, the U.S. withdrawal from the Paris Agreement, and skepticism toward climate science. These policies affected the global sustainable finance ecosystem, meaning his return could once again test the resilience of ESG investment.
In his second term, Trump has declared a “national energy emergency,” in line with his campaign promises. According to experts at Allianz Global Investors, the measure aims to strengthen the U.S. fossil fuel sector, the world’s largest oil producer, and cut energy prices by 50%.
“His actions will complicate the fight against climate change. Additionally, skepticism surrounds Trump’s ability to halve energy prices as he claims. During the 2020 pandemic, even when oil prices turned negative, U.S. energy costs only dropped by 19%. Other factors, such as his order to replenish the Strategic Petroleum Reserve, could even push prices up in the short term,” state Greg Meier, Senior Economist at Allianz Global Investors, and David Lee, U.S. Energy Sector Specialist at Allianz GI.
Their conclusion is clear: “While Trump’s actions reinforce his commitment to fossil fuels, their actual impact on lowering energy costs will likely be limited and far from his stated expectations.”
Key Takeaways for Investors
In this context, Sophie Chardon, Head of Sustainable Investment at Lombard Odier Private Bank, believes investors should focus on sectors less exposed to political shifts, such as infrastructure, digitalization, energy efficiency in buildings, water management, and precision agriculture.
“From an investment perspective, Trump’s second administration could increase sectoral and regional divergence as the U.S. loses momentum in sustainable investments. After the sharp declines in sustainable investment valuations in late 2024, earnings dynamics are now in control, making stock selection crucial,” Chardon explains.
She also highlights that while the U.S. may slow its climate efforts under Trump, global momentum—especially from China and the EU—should keep the transition to green energy moving forward.
“Investors will need to focus on sectors that are less exposed to policy risks and on those aligned with long-term demand for clean technologies, infrastructure, and climate resilience,” she insists.
Europe’s Advantage in ESG Investment
According to Deepshikha Singh, Head of Stewardship at Crédit Mutuel Asset Management, investment prospects remain uneven.
“Investors may witness significant rollbacks in federal climate action and reporting standards. Trump’s pick to lead the SEC, Paul Atkins, has been openly opposed to the SEC’s climate disclosure rules. However, states like California and New York will likely continue setting ambitious climate goals,” Singh states.
Despite this, Singh sees Europe maintaining its leadership in sustainable investment, which could be a key advantage for investors.
“European companies that align with strict ESG regulations could attract more capital, while U.S. companies struggling to meet international standards could face higher costs and reduced access to foreign markets. The alignment of the European financial sector with the Paris Agreement and COP29 goals presents opportunities for those prioritizing green investments.
Additionally, Europe may seek to influence global financial markets by expanding ESG disclosure requirements for internationally operating companies, which could impact U.S.-based multinationals and other global corporations,” Singh explains.
The Future of ESG Investment Amid Political Cycles
For Singh, sustainable investment’s resilience lies in its ability to adapt to political cycles. While she acknowledges that Trump’s policies may pose challenges for some aspects of ESG investing, she sees it as unlikely that the overwhelming global shift toward sustainability will be reversed.
“Investors, driven by both risk management and opportunities, will continue to integrate ESG factors into their portfolios, even in the face of opposition. The demand for transparent and responsible investments will persist, regardless of who is in the White House.
In fact, Trump’s second term could even emphasize the urgency of private-sector leadership in driving the sustainable investment movement in the U.S. and beyond,” Singh concludes.
Jupiter Asset Management has announced the launch of the Jupiter Global Government Bond Active UCITS ETF, the Group’s first exchange-traded fund (ETF), in collaboration with HANetf, a specialist in white-label ETFs.
Jupiter has been exploring new ways to distribute its products and expand access for more clients to its extensive investment expertise. With greater execution flexibility, a high degree of transparency, and competitive pricing, active ETFs offer clients an alternative and democratized entry point. In line with Jupiter’s truly active high-conviction investment management approach, active ETFs also provide investors with the potential for higher returns than traditional passive products.
The Jupiter Global Government Bond Active UCITS ETF, or GOVE, aims to outperform traditional sovereign bond investments by offering a diversified portfolio of developed and emerging market government debt, with low correlation to equities and other risk assets. Due to their complexity, potential for market inefficiencies, and sensitivity to macroeconomic factors, global sovereign bonds represent an ideal asset class for an active ETF.
The fund is managed by Vikram Aggarwal, a sovereign debt investment manager who has been with Jupiter since 2013. The fund’s investment strategy focuses on identifying inefficiencies in sovereign bond market valuations by comparing Jupiter’s perception of the current economic regime with market expectations. This contrarian approach seeks to capitalize on opportunities when there is a significant divergence between perceived and actual economic conditions.
“We are pleased to partner with HANetf for the launch of our first active ETF. We have been exploring new ways to provide clients with access to Jupiter’s extensive investment expertise, and today’s launch is part of that strategy. We know that greater transparency, faster execution, and competitive pricing are driving clients to increase their exposure to active ETFs. We believe Jupiter’s truly active investment approach and differentiated product offering position us very well to grow assets in this exciting new space,” said Matthew Beesley, CEO of Jupiter.
Hector McNeil, Co-Founder and Co-CEO of HANetf, stated: “We are delighted to work with Jupiter on its first active ETF at this pivotal moment for the market. Net inflows into active ETFs from European clients increased by more than 50% between Q1 and Q2 of 2024. Total assets under management in Europe now exceed $41 billion, and as clients increase their allocations, we are seeing very strong growth momentum.”
Amid rising living costs and economic uncertainty, many baby boomers are reconsidering traditional retirement plans, with many opting to remain in the workforce longer than previous generations.
According to a recent study by Indeed Flex, 88% of baby boomers remain engaged in full-time, part-time, or temporary employment. Additionally, more than one-third of respondents expressed uncertainty about their ability to retire this year, citing financial constraints and inflationary pressures.
“Boomers are facing long-term care costs, obstacles in saving, or possible investing challenges; temporary work is a good bridge to make ends meet,” said Novo Constare, CEO and Co-founder of Indeed Flex.
While previous generations relied on pensions and more affordable living expenses, today’s retirees face a different financial reality. The study found that only 10% of boomers are fully retired, with many delaying their exit from the workforce due to increasing healthcare expenses and market volatility. Some have even chosen to re-enter employment, with 23% of retirees seeking temporary work to supplement their income for discretionary spending, such as travel or gifts.
Temporary employment has emerged as a practical solution for those looking to maintain financial stability while retaining flexibility. Indeed Flex’s data indicates that 83% of boomers are open to temporary work, particularly in retail, hospitality, and business support industries. Among those considering flexible work arrangements, 55% prefer working 10-20 hours per week, 27% prefer 20 or more, and 14% seek only a few hours per week.
Employers are increasingly recognizing the value of an aging workforce. With decades of experience, baby boomers bring reliability, problem-solving skills, and a strong work ethic to multigenerational workplaces. Businesses struggling with seasonal demand or staffing shortages find that hiring older, experienced workers temporarily offers a strategic advantage.
“Previous generations could rely on pensions and affordable living; today’s boomers are navigating a financial landscape where Social Security alone isn’t enough to meet current needs,” Constare continued.
With 88% of Americans ages 59 and older still working in some capacity, the study reflects a fundamental change in retirement norms. As financial concerns persist, many older adults adjust their plans and turn to temporary employment to bridge the gap between Social Security benefits and the rising cost of living. This trend presents an opportunity for businesses to tap into a workforce that remains highly engaged and eager to contribute.
The growing demand for transparency in ESG reporting is reshaping responsible investing. According to the latest Cerulli Edge – U.S. Institutional Edition, asset owners are facing increasing pressure from regulators, clients, and the public. In response, they now require asset managers to provide detailed disclosures on ESG-related activities. This shift is driving enhanced accountability across the investment industry.
Cerulli’s research indicates that 58% of institutional investors currently require or plan to require asset managers to disclose portfolio-level exposure to financially material ESG risks, as well as impact and thematic reporting. Additionally, 23% of asset owners mandate reports on ESG-related engagement activities, while another 22% intend to implement this requirement within the next two years.
“Institutional investors want to ensure ESG considerations are not just passing trend, but a fundamental part of the investment process,” said Gloria Pais, an analyst for Cerulli.
Despite these demands, significant challenges persist. According to Cerulli’s findings, 38% of asset owners report difficulty in defining ESG boundaries, particularly when distinguishing between ESG and impact investing. The lack of standardized ESG reporting guidelines creates inconsistencies across sectors, complicating the evaluation of portfolio performance.
Efforts to standardize ESG reporting frameworks are underway, yet obstacles remain. As asset owners continue to prioritize transparency, asset managers must invest in advanced reporting systems to meet these expectations. Those capable of delivering comprehensive and standardized ESG reports will be better position to attract institutional clients and maintain a competitive edge.
“Integrated ESG considerations into investment processes will not only enhance competitiveness but also ensure alignment with the values of institutional clients,” Pais added.
The push for ESG transparency extends beyond regulatory compliance and signifies a shift in investor priorities toward long-term sustainability and accountability. Asset managers who proactively adopt transparent ESG reporting practices will be well-positioned to capitalize on emerging opportunities in this evolving market.
Investors and Industry Experts to Gather in Miami for the FII PRIORITY 2025 Summit to explore solutions through its core pillars: Artificial Intelligence and Robotics, Education, Healthcare, and Sustainability.
The event will take place from February 19 to 21 at the Faena Hotel & Forum in Miami Beach and will mark its third edition.
The Future Investment Initiative Institute (FII) is a global nonprofit foundation with an investment arm and a single mission: Impact on Humanity.
This third edition of the FII PRIORITY Miami Summit, under the theme “INVESTING WITH PURPOSE”, will serve as a platform for implementing practical strategies that promote long-term resilience and inclusive growth, according to an FII statement.
Vector Global WMG has added Alberto Valdés to its international business in Houston, according to information available on BrokerCheck.
With 15 years of experience in the Texas business, according to Finra records, he joins the new firm to provide brokerage and advisory services to clients in Mexico.
The financial advisor, who comes from Alterna Securities, where he joined in 2021, worked for 12 years at BBVA in Houston, serving clients from Mexico between 2008 and 2020, according to his BrokerCheck profile.
According to industry sources, at Vector Global, he will focus on providing broker/dealer services and advisory services to clients in Mexico.
Valdés holds an MBA from the Instituto Tecnológico Autónomo de México and a Certificate in International Trade, Finance, Business, and Management from the UCLA Anderson School of Management.
