July 2019

04Jul

Danish Pension Debuts Line of Sustainable Products

Denmark’s AP Pension has launched a new line of sustainable investment products, AP Sustainable, that was developed with Danish fintech company Matter.  All of the investments in the line will work toward supporting the goals of the Paris Agreement or contribute to one or more of the United Nation’s 17 sustainable development goals (SDGs).    “Together with AP Pension, we look forward to setting new standards for sustainability in the Danish pension industry,” Niels Fibæk-Jensens, CEO and co-founder of Matter, said in a...

July 4, 2019
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04Jul

Swiss. Planned pension reform sees women working a year longer

The Swiss government plans to incrementally increase the retirement age of women to 65 while offering incentives for all people to work longer. The CHF2.8 billion ($2.84 billion) savings measures would be accompanied by a sales tax hike and extra pension payments for hardship cases. On Wednesday, Swiss interior minister Alain Berset presented the latest proposalsexternal link to rescue the ailing state pension system. Two previous plans have been rejected by Swiss voters in recent years. A central plank of the reform is...

July 4, 2019
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04Jul

U.S. How gig economy workers can save for retirement

Today's gig economy is creating both opportunity and problems for millions of Americans. Gig workers include those who devote at least some of their time to providing ride-hailing services, short-term rentals of their homes or delivery services. One powerful example is Uber. The ride hailing service, which launched its initial public offering earlier this year, said over 1.5 million active Uber drivers received more than $3 billion in payments in 2017. Active Uber drivers earn an average monthly income of about $364. Uber and...

July 4, 2019
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03Jul

World’s top pension fund warns against risk of green-bond ‘fad’

A top executive at the world’s biggest pension fund has expressed doubts over green bonds, saying that, without fundamental changes, the asset class risks becoming a “passing fad”. Global green bond issuance, which was almost nonexistent a decade ago, reached $47bn in the first quarter of 2019, according to Moody’s credit rating agency. Total global issuance of the bonds, which are issued to support specific environmental projects, is expected to hit $200bn by the end of the year, from $167bn...

July 3, 2019
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03Jul

British companies, pension funds may have to report climate risks

Britain last week became the first G7 country to sign into law a requirement to reach net zero emissions by 2050 and the green finance strategy, published on Tuesday, sets out plans to increase investment in sustainable projects and infrastructure. The government paper builds on disclosure on climate risks set out by the G20 Task Force on Climate-related Financial Disclosures. The government report said the financial sector needed be at the heart of changes required to meet the net zero emissions...

July 3, 2019
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03Jul

Japan. Proportion of older households living on pension alone fell to just over half in 2018, ministry survey shows

A majority of elderly households live on pension income alone, a welfare ministry survey showed Tuesday. The share of elderly households who said pension or military pension benefits are their only source of income fell to 51.1 percent in 2018. The figure, which had stood at 52.2 percent in 2017, has been declining since it peaked at 57.8 percent in 2013, apparently reflecting an increase in the number of elderly who continue to work. The release of the data comes amid growing...

July 3, 2019
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03Jul

Most European DB pensions are cashflow negative

Over 70% of UK defined benefit (DB) pension schemes are cashflow negative, with more benefits being paid out than contributions being received, while in Europe as a whole the figure stands at 64%. In the UK, this marks an increase of cashflow-negative DB plans of 7% since 2018. The key driver behind this year-on-year increase is the maturity of these plans, with many now being closed both to new members and new benefit increases. Throughout Europe, including the UK, 72% of...

July 3, 2019
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02Jul

Why Africa’s Biggest Fund Manager Is Under Fire

The Public Investment Corp. is the behemoth of Africa’s fund managers, overseeing $150 billion in pension assets for more than 1 million South African state workers. While the PIC, as it’s widely known, was long heralded for delivering market-beating returns, its reputation has been scarred by accusations that it made questionable investment decisions and didn’t follow proper procedures. An official inquiry into how the fund manager is run has starkly highlighted its management shortcomings. 1. Why is the PIC so important? It’s...

July 2, 2019
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02Jul

Australia’s Top Pension Fund Explores Merger

Australia’s top-performing pension fund is considering merging with a smaller peer as consolidation grips the nation’s retirement industry. Melbourne-based Host-Plus Pty, which manages about A$43 billion ($30 billion) of retirement savings from hospitality and tourism workers, signed an agreement with Club Super to formally begin due diligence on a merger, the funds said in an emailed statement Tuesday. It’s anticipated the transaction will be approved, bringing greater benefits to members, the statement said. It’s the second merger in Australia’s A$2.8 trillion...

July 2, 2019
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02Jul

EIOPA outlines key financial stability risks of the European insurance and pensions sector

Today, the European Insurance and Occupational Pensions Authority (EIOPA) published its June 2019 Financial Stability Report of the (re)insurance and occupational pensions sectors in the European Economic Area.The risk of a prolonged low yield environment has become more prominent in recent months, as central banks have put the process of monetary policy normalisation on hold amid concerns over economic growth following growing trade tensions and political uncertainty. The low yield environment remains the key risk for both, the insurance and pension...

July 2, 2019
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