August 2022

Renewable energy’s charm still growing for investors

Amid a just-passed U.S. climate bill unleashing record investment in domestic clean energy, energy transition efforts in the U.K. and Europe well underway and energy security concerns raised by the Ukraine war, institutional investors seem poised for the next level of investing in renewables. "Over the last year alone, we've witnessed the highest levels of interest in renewables we've ever seen from institutional investors," said Matt Setchell, co-head of Octopus Energy Generation's fund management team in London. Part of Octopus...

South Africa. One simple decision can cost you 41% of your retirement

On the back of the widely known statistic that over 90% of South Africans are not in a position to retire comfortably, FNB Employee Benefits has also noted a growing trend amongst SME employees not fully understanding or saving enough for retirement. “Although up to 70% of our commercial banking employers currently don’t offer formal benefits to their staff members, the small and medium businesses that do offer these benefits are concerned at the low rate of retirement saving from...

Portugal becomes fastest aging country in EU: Study

Portugal currently registers 182 elderly (aged 65 years and above) for every 100 young people (aged up to 14 years), becoming the fastest aging country in the European Union (EU), according to a study published by the Contemporary Portugal Database Pordata. In the past three decades, the elderly population tripled in the country, according to the study, based on data from the Portuguese National Statistics Institute (INE) and published by Publico newspaper on Sunday. In 1990, Portugal registered 66 elderly for...

Planets aligning for U.S. pension funds to offload their liability risk

U.S. corporate pension plans have reached a sweet spot in their derisking journeys that will enable them to pull the trigger on pension risk transfer transactions, including plan terminations. Their funding levels have risen primarily due to rising interest rates that are lowering pension liabilities even as plan assets have fallen due to the challenging return environment that has characterized the first half of 2022. "For corporate pension plans, this what they've been waiting for, for years," said Michael Moran, New...

Canadian pension fund CDPQ explores legal options over failed crypto firm

Canada's second-largest pension fund Caisse de dépôt et placement du Québec (CDPQ) is exploring legal options over bankrupt crypto lending firm Celsius and will no longer invest in crypto firms, it said on Wednesday. CDPQ's statement came as the fund recovers from its failed investment in New Jersey-based Celsius, which filed for bankruptcy in July less than a year after it received an investment of $150 million from the fund. "We will preserve our rights and explore legal options," CDPQ Chief...

Iran raises pensions for retired workers by over 38%

The Iranian government has approved a raise in monthly pensions paid to millions of retired workers in the country. Caretaker labor minister Mohammad Hadi Zahedivafa said on Thursday that monthly pensions for retired workers who are on the payroll of Iran’s Social Security Organization (SSO) will rise by 38% plus a fixed monthly handout of 5.15 million rials ($17.5) as of September. The raise will be applied retroactively to pensions paid since the start of the calendar year in March, said...

Nigeria. Pension fund, contributors hit N14trn, 9m respectively – PenCom

The Director -General, PenCom, Mrs Aisha Dahir-Umar gave the figure at a workshop organised by the commission for journalists covering the pension industry on Thursday in Lagos. The theme of the workshop was, “Increasing Informal Sector Participation In The Contributory Pension Scheme (CPS) :The case for Micro Pension Plan (MPP).” Dahir-Umar, represented by the Head, Corporate Communications, Mr Abdulqadir Dahiru said increasing number of pension contributors and fund was responsible for the recapitalisation of the Pension Fund Administrators (PFA’s) by PenCom. “The...

Investors join forces to address financial, environmental risks of water

A coalition of 64 institutional investors is collaborating to get world's biggest corporate water users and to address water as a financial risk. The Valuing Water Finance Initiative represents institutional investors with a collective $9.8 trillion in assets, and is coordinated by shareholder advocacy group Ceres and the government of the Netherlands. Read also Europe’s gas crisis: what does it mean for investors? Pension fund members include the $459.4 billion California Public Employees' Retirement System, Sacramento; $301.6 billion California State Teachers' Retirement...

UK. 80% of employers think it is important pensions are invested responsibly

Aviva’s Working Lives Report 2022: The Big Squeeze(1) has found four out of five (80%) employers compared to 65% of employees think it is important that a workplace pension fund is invested responsibly. The research also found a further 19% of employees said responsible investment(2) is important but only as long as it does not impact the performance of their funds. However, over half (55%) of employees do not know if their workplace pension fund is invested responsibly. Just over...

Philippines has little time to address aging population – Pupulation Commission

The government should start investing on long-term programs to manage the increasing number of senior citizens in the country, particularly on health-care and employment opportunities, the Commission on Population and Development (Popcom) executive director said on Wednesday. “What we need are programs to achieve active and healthy aging, including community-based rehabilitation programs. We also need programs for geriatric care … Eventually, if there are really growing numbers, let’s say beyond 10 million population, we also have to develop programs for...