November 2021

Norway’s largest pension fund divests from 14 arms firms

Norway's largest pension fund said on Thursday that it has divested from 14 nuclear and regular arms-producing companies. Oslo-based KLP said it made the decision after reviewing its ethical criteria on weapons. "This will primarily mean companies that produce certain types of weapons which, by their nature, violate fundamental humanitarian principles,'' the fund said in a statement. "The criterion applies mainly to nuclear weapons and cluster munitions, as well as anti-personnel mines," it said in a statement. Which companies is KLP divesting from? As...

Can ethical investing really help in the fight against climate change?

By Ralph Benson What links climate change, the Black Lives Matter movement and the Facebook whistleblowing controversy? They’re all impossible to ignore when it comes to investing your money ethically. As global leaders and climate activists gather in Glasgow this week for COP26, in the face of the threat of climate catastrophe, the term ‘ethical’ will be bandied about in relation to all topics, from government finances to corporate responsibility. We, as potential pension investors, can play our part in this by...

Germany’s $400 Billion Pension Fund Eyes Capital Markets Boost

Germany’s future government plans to let the country’s pension system invest in the capital markets for the first time in what would be a small revolution in how Europe’s largest economy manages money for its growing ranks of retirees. Negotiators for the Social Democrats, Greens and the market-oriented Free Democrats are seeking to hammer out details that would allow the $400 billion pension system to start investing some of its reserves into stocks and bonds, which would bring it more...

Judge advances Puerto Rico Board’s pension interpretation of bond bill

The Puerto Rico bankruptcy judge approved the Oversight Board’s plan to notify affected parties of its interpretation of the bond law supporting the bankruptcy, allowing the board's motion to move forward with pension changes in the Plan of Adjustment. On Monday the board’s lead attorney told Judge Laura Taylor Swain the current bond adjustment deal would collapse unless she ruled that a recently passed law, which bars pension “cuts,” allows for the board’s planned pension changes. On Tuesday Swain approved the...

Romania labor minister announces pensions increases in January

Romania's Government plans to increase pensions by at least 6% next year while child allowances will go up by 20% from January 1, 2022, the interim labor minister, Raluca Turcan, said on Monday, November 1. "A realistic and sustainable budgetary effort for next year means an increase in allowances by 20% from January 1, so an overall increase in expenses of about RON 350 million per month, in addition to this year's expenditure. Also, pensions will be indexed by at least...

Pension funds commit $130 billion to fight climate change at the COP26 summit

Nordic and British pension funds on Tuesday committed to invest $130 billion by 2030 to fight climate change, and report annually on the progress of their green investments. Denmark said $75 billion of the funds were new commitments. The pledge, launched at the COP26 climate summit in Glasgow, Scotland, included asset owners in Sweden, Norway, Finland, Denmark, Iceland, the Faroe Islands and the United Kingdom, plus a fund from Greenland. "Green transition requires massive investments. Governments have to do their part...

U.S. corporate pension funding rises in october-4 reports

Funding ratios for U.S. corporate pension plans increased in October, according to reports from Legal & General Investment Management America, Wilshire, Northern Trust Asset Management and Insight Investment. LGIMA found in its monthly pension solutions monitor that the funding ratio of a typical corporate pension plan increased by 2 percentage points to 91.7% in October primarily due to strong performance from global equities. LGIMA estimated that U.S. Treasury rates dropped 4 basis points while credit spreads remained relatively unchanged, resulting in...

UK. House of Lords votes for changes to pension triple lock freeze

The government has been defeated in the House of Lords over its one-year suspension of the "triple lock" formula to increase the state pension. Ministers plan to temporarily break the link between pensions and the rise in earnings, breaching a manifesto pledge. It followed concern that a post-pandemic rise in average wages would have meant pensions increasing by 8%. Peers voted to restore a link with earnings. But MPs could still go on to reject their amendment. The House of Lords backed an...

Waiting to save: The cost of delaying your retirement funding

Putting enough money away for a comfortable retirement is a daunting task and, while we all know that starting early is critical, the numbers are alarming. Statistics from the 2021 10X South African Retirement Reality Report which has just been released are frightening. Around half the people surveyed indicated that they are making no provision for retirement at all, while the other half indicated they have some form of savings plan in place. 74% of survey respondents accept that...

Knowing the difference between ethical, responsible and impact investing

Climate change awareness and environmental concerns have never been more important, and over the past few years these issues have been spoken about in abundance when describing financial investments. Three phrases in particular have been commonly used to describe investment products and strategies, but there is still confusion as to their exact meaning. Mike Appleby, investment manager on the Liontrust Sustainable Investment team, outlined the difference between ethical investing, responsible practices and impact investing. “Ethical investing looks to avoid controversial industries such...