May 2019

09May

Kenya. RBA targets Sh2.4trn via mobile phones

The Retirement Benefits Authority (RBA) is counting on the informal sector to more than double pension savings to Sh2.4 trillion in the next five years, riding on mobile phone-based products. Chief executive Nzomo Mutuku on Tuesday said roping in the sector will help grow pension coverage from the current 20 percent to at least 30 percent by 2024. “Informal sector cannot use payroll system to remit savings, so we want to have mobile phone-based platforms where one can make contributions. And...

May 9, 2019
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09May

Pension fund giant KLP cuts coal related investment

BHP Group is among several companies a $106 billion international pension fund has excluded from its investment universe as it aims to rid its portfolio of coal. Norway's Kommunal Landspensjonskasse (KLP) took the decision to divest almost $520,000 of holdings in stocks and bonds of across 46 such companies. It used three exclusion criteria: companies that get more than 5% revenue from coal-based activities; produce more than 20 million tons of coal annually; and have more than 10,000 megawatts...

May 9, 2019
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09May

UN partners with KLP to Identify Financial Investments At Risk

The United Nations Office for Disaster Risk Reduction and KLP, Norway's largest pension company, announced today a partnership to geo-tag financial investments against vulnerability to disaster and climate risk. The UN Secretary-General’s Special Representative for Disaster Risk Reduction, Mami Mizutori, said: “This is a major breakthrough in the world of finance and investment. It is clear recognition of the need to include disaster risk in the investment portfolios of any self-respecting enterprise seeking to avoid exposure to climate and...

May 9, 2019
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09May

Stagecoach takes legal action against UK after rail bids rejected

Stagecoach Group said on Wednesday it had begun legal action against Britain’s Department for Transport after the company’s bid to continue operating a rail route was rejected due to concerns over pensions. The Department for Transport has asked rail franchise bidders to take on the full long-term funding risk of parts of the Railways Pension Scheme and disqualified Stagecoach’s bid for the East Midlands franchise because it did not comply with that request. It also disqualified the company from...

May 9, 2019
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09May

South African Investment Firm Looted Pension Fund With Insider Information

President Jacob Zuma’s surprise sacking of South Africa’s finance minister at the end of 2015 sparked economic panic: The rand plunged to a record low against the dollar and even the normally steady bond market roiled. But one investment company, a little-known boutique operation, raked in at least 133 million rand (US$9.2 million) by trading on the turmoil. Related deals under investigation may have raised the total profit to as much as 500 million rand (US$32 million) as the country...

May 9, 2019
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09May

Americans are saving more for retirement, but it may not be enough

The good news: Americans are saving more than they ever have for retirement. The bad news: They’ll probably need to save even more. Employees contributed an average of $2,370 per account to their 401(k) plans in the first quarter of 2019, a record level and 15% more than one year prior, according to Fidelity Investments, the Boston-based financial services firm that also manages retirement accounts. Employers also hit a record high with their own contributions to employee plans, partly...

May 9, 2019
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08May

UK. Ageing population ‘an opportunity, not a problem’ say MPs

The “problem” of the UK’s ageing population should be recast as one of the most “promising opportunities of the 21st century”, according to MPs at the centre of a new government strategy on longevity. Launched on Tuesday, the All-Party Parliamentary Group for Longevity will develop a radical strategy setting out how the working population can stay fit and functional for longer, stressing the business opportunities presented by Britain’s changing demography. “We need to change how we see ageing —...

May 8, 2019
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08May

‘Savings will be half original estimate’: PMs slash Brazil pension reform expectations

Fund managers remain positive on the prospects of Brazil’s pension reform despite recent government talks having led them to slash in half the savings they expect the reform to generate. In February, President Jair Bolsonaro introduced to the country's lower legislative chamber a wide-ranging pension reform bill that was expected to result in savings of 1.07 trillion Brazilian reais ($270.7 billion) over 10 years. The bill cleared its first hurdle on April 23 when the lower house committee -...

May 8, 2019
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08May

Croatian Unions Urge Minister to Quit over Pensions Adverts

Mladen Novosel, the chairman of the Union of Autonomous Trade Unions of Croatia, called on Tuesday for Labour Minister Marko Pavic to step down for “systematically telling untruths related to pension reform” via a series of televised advertisements. Unions also accuse the government of spending much more on the advertisements to promote its controversial reform of the pension system than the minister has told the public. “For sure, today we can talk not about two, nor four, but about...

May 8, 2019
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08May

French insurance sector pension fund announces investment in Scientific Beta low carbon multi-factor indices

Scientific Beta, the smart beta index provider, and SACRA, a pension fund for the French insurance sector, have announced the launch of two low carbon multi-factor indices for the US and Eurozone regions. This move comes as part of SACRA's reorganisation of the management of its equity portfolio. The US equity portfolio, and part of the Eurozone equity allocation, are now invested to track the two multi-factor indices from Scientific Beta. In addition to seeking higher long-term financial returns...

May 8, 2019
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