January 2020

23Jan

Ford to take $2.2 billion fourth-quarter loss related to pensions

Ford Motor Co. said late Wednesday it expects to take a fourth-quarter pretax charge of $2.2 billion related to pension obligations that will cut down on its net income. After taxes, the $2.2 billion loss is expected to slash Ford’s net income by about $1.7 billion, Ford F, -1.42% said in a filing. As it is a special item, the loss will not affect adjusted profit or adjusted per-share profit, the car maker said. It also did not...

January 23, 2020
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22Jan

IMF warns of Kenya’s pensions time bomb

The International Monetary Fund (IMF) has warned of a ticking time bomb in Kenya’s pension sector as the gap between retirement dues and actual savings continues to grow wider. Kenya, which in 2009 opted to delay the implosion by raising the retirement age for civil servants from 55 to 60, is now facing pension obligations that have ballooned to Sh2.6 trillion — about 30 percent of GDP. This is much higher than what Kenyans pay as taxes. The country’s...

January 22, 2020
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22Jan

Australia. More pensioners are taking up part-time work to avoid the threat of pension poverty

More pensioners than ever are having to work part-time just to get by according to new research, with nearly 5 per cent of people on the pension now doing paid work. Key points: New research shows that a growing number of pensioners are needing to work part-time Women and divorcees are among those most affected Seniors Australia says tax changes are needed to not penalise pensioners who work Cost of living and inequality researcher Paul Blacklow, of the University...

January 22, 2020
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22Jan

Pension funds’ AUM set to rise to $61trn

Low interest rate environments in many developed nations, alongside increasingly volatile equity markets, are leading pension funds to adapt their investment strategies. In their search for yield, many are looking outside their borders as well as investing in alternatives, according to a new report by the Association of the Luxembourg Fund Industry (ALFI) produced by PwC Luxembourg. The report, which examines the growth of pension-fund assets, their foreign-investment limits, and other key trends, shows that pension-fund assets globally are...

January 22, 2020
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22Jan

African Public Servants unhappy

(APACSUN) has expressed indignation that large proportion of workers on the continent are not covered under the social security systems, especially for the informal sector. APACSUN has, therefore, resolved to support member unions to study and adopt best practices that enable the improvement of pension administration and benefits for members. This was in a communique the Network issued at the end of its Second Strategic Meeting in Ghana from January 15 to 17, signed by Mr Isaac Bampoe Addo,...

January 22, 2020
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22Jan

Why 2020 Is The Year For Fintech

This month marked one of the largest fintech acquisitions of all times, Visa’s purchase of Plaid for $5.3 billion. It is a validation of fintech in a literal sense – Plaid is a key enabler to many of the leading fintech players, and critical in simplifying the onboarding flow and integration of players. It may also be a bellwether for the year: 2020 may be the year for fintech. Four important and interlocking trends will drive this. 1. ...

January 22, 2020
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21Jan

UK ‘leading’ European market for ESG investments

The UK is the 'leading European market' for environmental, social and governance (ESG)-related investments, with £6,439bn assets under management, according to joint research by Association of Luxembourg Fund Industry (ALFI) and PwC Luxembourg. The joint report, Beyond their Borders: Evolution of foreign investments by pension funds, stipulated that European managers were taking the lead in applying ESG criteria to investments, with them expecting to observe 9.3 per cent growth from 2017 to 2025. The UK meanwhile is expected to...

January 21, 2020
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21Jan

Romania’s second pillar pension returns at nine-year high

Romania’s second pillar pension funds generated impressive returns in 2019 despite hostile policies from the previous government. According to the Romanian Pension Funds’ Association (APAPR), the seven second pillar pension funds averaged a 12-month nominal, asset-weighted yield as of the end of 2019 of 11.8%, a nine-year high and well above the year’s 4% inflation rate. The previous year the funds returned their lowest ever – and only sub-inflationary yield – of 1% compared to an inflation rate of...

January 21, 2020
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21Jan

Ireland. Restoring pension age to 65 would cost €620m a year, claims FF

Pulling plans to increase the State pension age will cost the incoming government up to €470 million a year, according to Government’s own figures, Fianna Fáil has said. And there will be a further €150 million bill annually if a transition pension is put in place to cover those forced out of their jobs at 65, the party’s spokesman on social protection Willie O’Dea said. The comments come as political parties come under pressure from voters over plans to...

January 21, 2020
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21Jan

Head of Canada Pension Fund Warns on Rush to Iliquid Assets

The biggest global funds should all be monitoring their investments in illiquid assets, according to the head of Canada’s largest pension fund. “I do ring the alarm bell on not to be too invested in illiquid assets,” Mark Machin, chief executive officer of the Canada Pension Plan Investment Board, said in a Bloomberg Television interview Monday at the World Economic Forum in Davos. “We are very comfortable with our risk models and what we would do in various lurches...

January 21, 2020
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