June 2017

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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19Jun

UK. FTSE 350 pensions in weakest position since 2009

British listed companies' ability to meet the obligations of their defined benefit, or final salary, pension schemes is at its weakest since 2009 as a result of falling gilt yields, consultancy firm PwC said on Monday. Low interest rates have increased the gap between pension schemes' assets, typically held in UK government bonds, and the fixed sums they need to pay to pensioners. Large pension deficits can reduce companies' ability to pay dividends as they divert cash into the pension schemes...

June 19, 2017
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19Jun

Europe-wide private pension plan is set to hit the market – but it must protect consumers, says Insurance Europe

The commission began consultations last year on its Pan-European Personal Pension Product (PEPP), which is intended to act as an additional income alongside public or workplace pensions. But industry trade body Insurance Europe has noted today that, unless done properly, the move to encourage more people to take out private pensions could end badly. “Insurance Europe welcomes the project of a Pan-European Personal Pension Product as a way to increase both the share of the population with private pensions and the...

June 19, 2017
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16Jun

Millions risk pension poverty despite auto-enrolment jump

Overall, workplace pension participation remains highest in the professional occupations with 86 per cent of eligible employees participating in 2016, compared to the lowest in skilled trade occupations (such as plumber, carpenter, welder) where 63 per cent were participating in 2016. The annual total amount saved by eligible savers was £87.1bn in 2016, an increase of £3.8bn on the total amount saved in 2015. In April 2018, auto-enrolment contribution rates will increase from a minimum of 2 per cent overall (with...

June 16, 2017
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16Jun

Swedish Pension Fund Sells Out of Six Firms It Says Breach Paris Climate Deal

Sweden's largest national pension fund, AP7, has sold its investments in six companies that it says violate the Paris climate agreement, a decision environmentalists believe is the first of its kind. AP7, which provides pensions to 3.5 million Swedes, said on Thursday it had sold out of ExxonMobil, Gazprom, TransCanada Corp, Westar, Entergy and Southern Corp, and would no longer invest in companies that operate in breach of the Paris climate accord. "Since the last screening in December 2016, the Paris...

June 16, 2017
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