October 2017

24Oct

South Africa. Gigaba asked not to use government pension fund to bail out SAA

The DA-run Western Cape government has voiced its opposition to the use of public sector workers' pension funds to bail out South African Airways. Finance MEC Ivan Meyer said he had written to Finance Minister Malusi Gigaba to register his opposition to such plans. "I cannot support any decision that puts the pensions of public sector workers at risk‚" said Meyer. He said he had previously spoke against the proposal at the budget council of last month. "We cannot allow any...

October 24, 2017
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23Oct

Trump says ‘there will be NO change to your 401(k)’ after reports Republicans want new caps on retirement savings

President Donald Trump used Twitter to dispel reports that the forthcoming Republican tax-reform plan would include big changes to how people could save for retirement. Reports on Friday said that GOP leaders were considering a cap on the amount of money that could be placed in a traditional, tax-deferred 401(k) to help pay for part of their tax plan. On Monday, Trump said this change would not take place because it is a popular middle-class tax break. Read More @Business Insider

October 23, 2017
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20Oct

UN’s $61 Billion Pension Fund Gets New Chief After Shortfalls

UN Secretary-General Antonio Guterres named Sudhir Rajkumar, a top official at the World Bank Treasury, to head the global body’s $61 billion pension fund in an attempt to reverse three years of below-target returns. Rajkumar will replace Carolyn Boykin, the former chief investment officer of the Maryland State Retirement and Pension System, in January, United Nations spokesman Stephane Dujarric told reporters Thursday. In December, the UN General Assembly criticized the pension fund’s performance, singling out $3.4 billion in foreign-exchange costs,...

October 20, 2017
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20Oct

US. Government report sounds alarm on retirement crisis

A new government report is sounding the alarm to Congress about a looming retirement crisis if nothing is done to fix existing roadblocks to financial security for many Americans. The Government Accounting Office paper calls on lawmakers to create an independent commission to "comprehensively examine" the U.S. retirement system — including Social Security, workplace retirement plans and individual savings — and make recommendations for improvements. The goals, the report said, should be to: Promote universal access to retirement savings Ensure greater...

October 20, 2017
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20Oct

ESMA Receives Mandate on Fund Performance from European Commission

The European Securities and Markets Authority (ESMA) has received a mandate from the European Commission (EC) requesting the European Supervisory Authorities (ESAs) – the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and ESMA – to issue recurrent reports on the cost and past performance of the main categories of retail investment, insurance and pension products. The request supports the action, included in the EC’s Mid Term Review of the Capital Markets Union of 8 June 2017, on...

October 20, 2017
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20Oct

Canada Pension Plan Investment Board Has $102.31 Million Position in Starbucks Corporation (NASDAQ:SBUX)

Canada Pension Plan Investment Board lifted its position in Starbucks Corporation (NASDAQ:SBUX) by 7.9% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,754,607 shares of the coffee company’s stock after acquiring an additional 128,675 shares during the quarter. Canada Pension Plan Investment Board owned approximately 0.12% of Starbucks Corporation worth $102,311,000 at the end of the most recent reporting period. Several other hedge...

October 20, 2017
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20Oct

Politics ensnares South Africa’s biggest asset manager

THE rot in South African politics, which has eaten away at state companies, is spreading. This week McKinsey, a consultancy, apologised for the “distress” it had caused the South African people. Political mud had already drowned Bell Pottinger, a British public-relations firm, and forced resignations at KPMG, an auditor. So the shenanigans at the government-owned Public Investment Corporation (PIC), have set off alarm bells. One concern is an apparent attempt to oust Dan Matjila, its boss. A linked worry...

October 20, 2017
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20Oct

US. Your pension fund could be invested in tech

The economics of the tech industry is a chain with a bunch of confusing links. Startups get their money from venture capital firms, and we've talked about how that works and why it heavily influences who becomes key players in tech and what products end up in your hands. But how do venture capital firms get their money? Limited partners, or private corporations; state, county and city entities; and universities. Now, continue to follow me down the chain. Where...

October 20, 2017
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19Oct

The U.K.’s $86 Billion Pension Problem Is About to Solve Itself

For U.K. Plc, the sting of Brexit comes with an unexpected bonus. With no effort on their part, British businesses could see pension deficits that have burdened them for years be practically wiped out if the Bank of England raises interest rates as predicted and they budget for slowing gains in life expectancy, according to estimates of New York-based consultancy Mercer. That will give executives one less thing to worry about as they prepare contingency plans in case Britain can’t...

October 19, 2017
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19Oct

US. New Accounting Rules Could Shift Pension Investment Mix

New accounting rules could prompt companies to accelerate the shift toward investing pension plans in safer, fixed-income assets, according to a recent report by Goldman Sachs Asset Management. The new guidelines focus on how and where on financial statements companies record pension plan expenses. Companies will have to separate employee service costs from other aspects of pension and postretirement benefit costs, such as expected return on plan assets and interest costs on the obligation. Businesses will be allowed to capitalize...

October 19, 2017
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