March 2019

13Mar

Investors Lose a Major Justification for Holding Tobacco Stocks

It wasn’t so long ago that the stellar performance of tobacco stocks such as British American Tobacco Plc and Philip Morris International Inc. was enough justification for asset managers to hold onto their investments, despite a broader push toward socially responsible investing. But in recent years, a flurry of European pension funds and insurers have begun divesting their holdings, putting pressure on the share prices. BAT had its worst year on record last year, slumping 50 percent, as the...

March 13, 2019
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13Mar

Romania’s PM Dancila assures there’s enough money for pensions

Romania’s social security budget will post a surplus of RON 1.7 billion (EUR 360 million) this year, as the Government’s decision of re-organizing the payment of employees’ contributions to the fund has paid dividends, prime minister Viorica Dancila assured in a press conference on March 12, in which she addressed the Presidency’s criticism of the 2019 budget planning. President Klaus Iohannis said in a statement on March 11 that "the social security budget misses some RON 1.4 billion." Dancila...

March 13, 2019
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13Mar

Australia to publish pension fund ratings, pressure underperformers

Australia will begin publishing “heat maps” of the performance of pension funds next year and will pressure those with poor records to exit the industry, the Australian Prudential Regulation Authority (APRA) said on Wednesday. Australian pension funds manage A$1.7 trillion ($1.20 trillion) in savings but lack “maturity” in governance and risk management practices, APRA Deputy Chair Helen Rowell said in a speech published on the regulator’s website. The sector is under pressure to lift standards and improve accountability...

March 13, 2019
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13Mar

This increasing client risk will change advisor practices. Here’s why

When asked what's the biggest impact on their practice, advisors didn't point to artificial intelligence, robos or even climate change. Instead, they're fixated on longevity risk. Clients' ever-increasing lifespans are challenging assumptions about spending rates, savings and more, say advisors, who singled out longevity in a survey released last month by Schwab Advisor Services. In the survey, 29% of participating advisors identified longevity as the leading macro trend that is shaping their firms. Within that group, 44% of advisors...

March 13, 2019
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13Mar

UK. Consumers need simpler retirement products, says outgoing FSCS boss

Pension products should carry a quality mark from the City regulator so customers know they are buying good value, the outgoing chief executive of a savings safety net has suggested. Mark Neale, who has previously announced his intention to step down after spending nine years as chief executive of the Financial Services Compensation Scheme (FSCS), suggested that pension products could be subject to a quality marking scheme by the Financial Conduct Authority (FCA). The FSCS, which is funded by...

March 13, 2019
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12Mar

South Africa. Government ministers lobby to stop PIC amendment bill

The bill is intended to strengthen and bring positive changes to the weakened Public Investment Corporation. There are behind-the-scenes efforts by some government ministers to put a spanner in the works and oppose the passing of the proposed Public Investment Corporation (PIC) Amendment Bill, according to an EWN report. The amendment bill is intended to strengthen and bring positive changes to the weakened PIC, which is responsible for managing assets on behalf of, among other institutions, the Government Employees...

March 12, 2019
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12Mar

US. ‘Dire situation’: Pension costs may close dozens of Kentucky health departments

About $38 million in increased pension costs could shutter health departments serving 42 Kentucky counties next fiscal year. State health leaders are pressing lawmakers for a one-year reprieve to allow time to overhaul a public health system now facing a financial crisis. The higher pension tab could lead local health departments serving an additional 22 counties to run out of reserves and be forced to close the following year, state officials said. That would hit a system...

March 12, 2019
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12Mar

UK. Pension warning for hundreds of thousands of carers

Hundreds of thousands of carers are unwittingly denying themselves a full state pension by failing to apply for carer’s credit. Figures from a Freedom of Information request reveal just 17,388 people received carer’s credit at the end of 2018. But according to government figures, around 200,000 carers are eligible – and most are women. If a carer fails to claim for carer’s credit, they could get less state pension in the future because these credits help plug gaps in...

March 12, 2019
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12Mar

Australia. Innovations in Retirement Income Solutions

The headline gave me hope: “Innovative income product now available for retiring Australians”. It was July 2017. The description of this new product was promising as it was “designed to help Australians more easily and confidently manage their superannuation in the lead up to and during retirement.” But then, like so many times before … ”[A]n account-based pension that offers a flexible and simple way for people to convert their superannuation into a steady income stream.” Lessons for...

March 12, 2019
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11Mar

EU and UK reach agreement over no-deal Brexit insurance rules

In case the UK withdraws from the EU without ratification of the withdrawal agreement, on March 30, 2019, the UK becomes a third country and UK insurance undertakings and distributors lose their right to conduct business across the EU27 Member States. This story is reprinted with permission from the Insurance Coverage Law Center, the industry’s only comprehensive digital resource designed for insurance coverage law professionals. Read more @Property Casualty360

March 11, 2019
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