June 2017

21Jun

Europe’s Insurers, Pension Cos. Still Face Risk, EIOPA Says

The macroeconomic environment remains fragile for Europe’s insurers and occupational pensions companies despite signs of improvement in the last six months, the European Union’s top insurance regulator said on Tuesday. The European Insurance and Occupational Pensions Authority said in a financial stability report that both sectors face challenges, partly due to uncertainty caused by national elections and the U.K.’s Brexit negotiations, which began in Brussels on Monday. The industries also face obstacles due to the growing risk of terrorism and cyberattack,...

June 21, 2017
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21Jun

UK. DB transfer paper shows FCA ‘moving into 21st century’, say advisers

The Financial Conduct Authority (FCA) consultation paper on advising on defined benefit (DB) pension transfers has brought the regulator's approach into the 21st century, according to advisers. The paper proposed a number of vital changes to regulation on DB transfers so as to mitigate the risk posed to consumers of giving up safeguarded benefits. These included removing the default position that transferring out of a defined benefit scheme was 'unsuitable' for a client, clarifying the definition of an 'insistent client', and...

June 21, 2017
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20Jun

UK pensions lifeboat to invest £150m in M6 toll road deal

Sky News has learnt that the Pension Protection Fund (PPF) is putting the funds into the company which operates the M6 toll road, just days after it was sold to IFM Investors, its second group of Australian owners. The PPF is understood to be investing in the debt attached to the M6's operating company, alongside the infrastructure arm of Allianz Global Investors, the German asset manager. Sources said the deal would be announced later this week, possibly as early as Tuesday. It...

June 20, 2017
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20Jun

US. Ending Pittsburgh’s fossil fuel pension investments wouldn’t be easy or cheap

Researchers say that Pittsburgh's pension funds could lose nearly $500,000 a year if the city stops investing in fossil fuel-related companies — as Pittsburgh Mayor Bill Peduto has said he is committed to doing. While that loss would be damaging for Pittsburgh's underfunded pension funds, it wouldn't do much to change the behavior of fossil fuel companies, the researchers suggest. “It's purely a symbolic move that has no impact on the climate,” said Chris Fiore of the Chicago-based economic consulting firm...

June 20, 2017
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20Jun

PSNC 2017: How Current Trends Will Drive the Future Retirement Planning Market

During Day Three of the PLANSPONSOR National Conference, in Washington, D.C., BrightScope data revealed top trends influencing the defined contribution (DC) industry. Allegra Heyligers, managing director of Strategic Insight, highlighted the pivotal role defined contribution plans play in the retirement marketplace, with a $7 trillion increase in DC assets since 2001, 24 million plan participants and 660,000 existing plans. Additionally, Heyligers mentioned the growing average rate of participation and rising cash contributions. In 2015, total cash contributions amounted to $425...

June 20, 2017
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20Jun

UK. £11bn merger moves closer for Scots financial services giants

STANDARD Life chairman Sir Gerry Grimstone has said the £11bn merger with Aberdeen Asset Management will create a global funds powerhouse run from Scotland but underlined the enlarged group’s expected commitment to the pensions and savings market. Speaking after shareholders in both firms gave strong backing to the proposal to combine the firms, Sir Gerry said the pension arm will play a key role in bringing in funds for the asset management business to invest. “The pensions and savings business in...

June 20, 2017
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20Jun

Australia. SMSF pension phase members compliance obligations approaching

The association said pension phase members needed to ensure they had met their minimum pension payments by 30 June, and that they should not overlook withdrawing their minimum pension amount for the 2016/17 financial year. The SMSF Association’s chief executive, John Maroney, said if members were in the transition-to-retirement phase they must take care not to exceed the maximum payment. “If you don’t take your minimum pension, the assets supporting the pension account are deemed not be in retirement phase for...

June 20, 2017
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20Jun

US. CalPERS pension fund to review private equity investments

The California Public Employees' Retirement System, or CalPERS, plans to scrutinize its private equity investments at next month's board meeting with an eye toward reviewing the governance and transparency of the asset class. Chief Investment Officer Ted Eliopoulos told the investment board on Monday that despite the high returns of its private equity investments, the negative public scrutiny of the asset class had made "it increasingly difficult for CalPERS to compete successfully in the private equity marketplace." The "fish bowl of...

June 20, 2017
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20Jun

UK. The Co-operative Bank to raise new capital. Pension Scheme, lynchpin of a £700m deal

The Co-operative Bank has confirmed it is in “advanced discussions” with a group of existing investors to raise new capital. Responding to recent media speculation, Co-op Bank has confirmed talks are progressing with a group of hedge funds on a new deal to recapitalise the bank as well as a “liability management exercise” to swap debt for equity. Sky News reported last week The Co-op Group was locked in a stand-off with the investors about a £200m pension deal, which the...

June 20, 2017
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19Jun

Zimbabwe. Impact Investment: Powerful tool for pension funds

There is a growing trend for pensions funds to strategically invest in order to achieve their corporate societal  engagement  strategy. Impact investment, which support social change while making a financial return has become a powerful tool for institutions such as pension funds as well as insurance companies and corporates. Impact investment, a term coined in 2007, is an approach in which, financial assets are invested with two objectives in mind: The first being to achieve a financial return white the...

June 19, 2017
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