August 2017

07Aug

Nigeria. Development partners set to unlock long-term funds for infrastructure

InfraCredit, an infrastructure credit enhancement institution with GuarantCo, Private Infrastructure Development Group (PIDG), and the International Finance Corporation (IFC), collaborate to support investor capacity building, and knowledge sharing in the Nigerian infrastructure finance sector. It is expected that the successful operation of InfraCredit will address the constraints facing the Nigerian pension market, and other long-term investors, thereby increasing their involvement in investing in long-term bonds to finance infrastructure assets. At the first investor workshop under the capacity building programme held in...

August 7, 2017
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07Aug

Uk. Ageing population to make productivity crisis worse

Britain’s productivity crisis risks getting worse because the population is ageing steadily, leaving relatively fewer younger, more dynamic workers who typically innovate more. Unless drastic action is taken to boost skills and creativity, or to increase the number of young workers, then growth will struggle to pick up, according to new economic research published in the journal of the National Institute of Economic and Social Research. “The share of young workers impacts the innovation process positively and, as a result, a...

August 7, 2017
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07Aug

Kenya. NSE share rally boosts pension fund returns

Pension subscribers have begun reaping the benefits of a recovering equities market that has now boosted average returns for schemes above the rate of inflation. An industry survey by Actuarial Services East Africa (Actserv) for the quarter ending June shows that the average return for schemes rose to 8.1 per cent from 2.5 per cent in the first quarter, buoyed by a jump in returns on equity investments to 18.3 per cent compared to 0.2 per cent in quarter one. The...

August 7, 2017
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04Aug

UK. State Pension rise: insurance loophole could put workers at risk

The government's announcement that it is speeding up the increase in the State Pension age might be causing problems for people with income protection. Last week, work and pensions secretary David Gauke announced that the increase in the State Pension age – from 67 to 68 – is being brought forward and will now be phased in between 2037 and 2039. This change could leave people with income protection insurance facing a one-year gap in cover between when their benefits end...

August 4, 2017
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04Aug

India. Government pension scheme to offer fixed rate of interest to investors

Interest rates will "slowly" become "reasonable", Finance Minister Arun Jaitley said on Thursday, a day after the RBI cut interest rates by 0.25 per cent. He also said that the government insurer LIC has come out with a pension scheme to offer fixed rate of interest to investors. A day after the RBI cut the interest rates, Jaitley said lending rate of 14-15 per cent will make India uncompetitive in the global market and industry cannot invest at such higher interest...

August 4, 2017
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04Aug

US. Pension Plans Had a Great Year, But Retirees Likely Won’t Benefit From It

Public pension plans are reporting double-digit investment returns, and some are even finishing with record highs this year. The high earnings are due to a robust stock market and are welcome news after two straight years of below-average returns for most pension plans. But finance experts say the investment boost likely won’t translate into an equally impressive reduction in pension debt because of the increasing cost of pensions. "Government contributions tend to be insufficient to reduce unfunded liabilities -- even if...

August 4, 2017
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03Aug

Singapore, Canadian pension funds to invest $1 bln in US talent firm

US talent management agency WME-IMG, which counts Japan's SoftBank Group among its investors, said it would receive a $1 billion investment from Canada's largest pension fund manager and Singapore's sovereign wealth fund GIC. Canada Pension Plan Investment Board (CPPIB), in a separate statement, said it would invest about $400 million for an 8 percent stake in WME-IMG, which owns brands like Ultimate Fighting Championship and the Miss Universe Organization. "This investment in a unique market leading platform in entertainment, sports and...

August 3, 2017
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03Aug

UK. Scotland facing ageing population timebomb

Scotland is facing a demographic time bomb in the coming decades with a sharp rise in the older population, prompting fears over how hard-pressed services will cope. The number of pensioners will soar by 28 per cent in just 25 years, according to official figures from the Registers of Scotland released yesterday. The figure has led to calls for the “swift action” from the Scottish Government to deal with the expected spike in demand at hospitals and social care departments. And there...

August 3, 2017
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03Aug

5% Is the New 8% for Pension Funds

For years, many pension funds assumed they would earn an average 8 percent annually from their investments. It was a reasonable expectation for a while. But times have changed. Now, the question isn't whether return expectations should be lower, but by how much. The average target has fallen toward 7.5 percent, but that's still probably difficult to meet without taking excessive risk. Howard Marks, the co-founder and co-chairman of asset manager Oaktree Capital Group, threw out a number this week that was...

August 3, 2017
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03Aug

New York City Pensions Return 12.95 Percent in Fiscal 2017: Preliminary Report

New York City's public pension system returned 12.95 percent on its investments in fiscal 2017, according to preliminary results from City Comptroller Scott Stringer on Wednesday, after two years of far more dismal results. Those returns, well above the funds' target return rate of 7.0 percent, should provide some relief for the underfunded retirement system. The results also mirror the investment performance of the nation's two largest public pension plans, both in California. Stringer cautioned that the results had not yet been...

August 3, 2017
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