May 2021
04May

Union Demands CPPIB Ditch Brazil Water Privatization Involvement

Canada’s largest union is demanding that the $387.1 billion Canada Pension Plan Investment Board (CPPIB) abandon its investment in a private water and sewage treatment service provider in Brazil. The Canadian Union of Public Employees (CUPE) said CPPIB is taking part in a “risky” sell-off of public water and sewage infrastructure being led by controversial President Jair Bolsonaro. “The involvement of the CPPIB in support of Bolsonaro’s privatization program would serve to legitimize his disregard for the needs of the...

May 4, 2021
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04May

Pension changes for South Africa under the spotlight

Parliament’s Standing Committee on Finance has invited interested parties to submit written submissions on the Pensions Funds Amendment Bill. Introduced by the opposition Democratic Alliance, the bill aims to amend the Pension Funds Act to allow pension fund members to access a portion of their fund before retirement as a guarantee for a loan. The DA has described the draft bill as crucial in the fight for ‘people power over state power’ in South Africa. “Individuals should be free to choose, in...

May 4, 2021
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04May

Surging Stocks Improve Pension Funding Levels, But De-Risking Isn’t at Risk

A strong stock market delivered the goods and then some for pension funding levels, both public and corporate, in the first quarter. But don’t expect companies to pull back from their campaign to shift into safer (if low-paying) bonds from stocks. That’s the conclusion from JPMorgan’s global market strategy team, which noted in a report that this development didn’t mean that corporate plans would ease up on their de-risking—that is, moving into bonds from stocks. Reason: Company defined benefit (DB)...

May 4, 2021
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03May

How One of Canada’s Largest Pension Funds Is Incorporating ESG in Its Portfolio

As allocators and fund managers alike scramble to incorporate diversity and climate change into their strategies, one of Canada’s largest asset owners has released its latest report on how, exactly, a C$365.5 billion pension fund does it. The Stewardship Report, released Wednesday by Caisse de dépôt et placement du Québec (known colloquially as CPDQ), details the fund’s 2020 efforts toward sustainability and diversity. In the report, CPDQ said it is tying employees’ variable compensation to the achievement of certain climate targets...

May 3, 2021
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03May

Ireland. A decent pension system isn’t something we can keep putting off

By John Mercer Ireland is entering a pivotal phase of transformational pensions change that should have a positive impact on individual retirement savers. The good news is that many of the necessary foundations for change are already in place - all that remains is a commitment to prioritising the rollout. The first development has now arrived with the long overdue implementation last week of the EU’s IORP II Directive. This slightly indigestible-sounding piece of legislation will govern the private retirement savings and...

May 3, 2021
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03May

Japan. GPIF looks to study private equity replication

Japan's Government Pension Investment Fund may be mulling changes to an alternatives investment program that's been cautiously deliberate until now. On April 20, the ¥177.7 trillion ($1.63 trillion) Tokyo-based giant made two separate announcements speaking to potential changes: the first was a callout for information from managers of domestic real estate, a sign GPIF could be moving beyond the fund-of-funds platforms it's focused on in recent years to directly hire general partners; the second was a paper exploring ways to...

May 3, 2021
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April 2021
29Apr

UK. FCA mulls online test for high risk investments

The Financial Conduct Authority (FCA) has proposed to force people to take an online test before they can invest in high risk assets, as part of a round up of ideas on curbing risks in the market. In a discussion paper out this morning (April 29) the regulator said it was keen to prevent consumers from accessing high-risk investments that they do not understand. The FCA is concerned that despite its existing marketing restrictions, too many consumers are still investing in...

April 29, 2021
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29Apr

US. Wall Street Bets Bigger on ESG as Sustainability Takes Hold

The greed-is-good ’80s power brokers are long gone, replaced by a generation of investors that at least present themselves as kinder, gentler and more environmentally and socially conscious. Read also NY State Pension Commits to $400 Million in Sustainable Investments But the almighty dollar — maybe a little less than omnipotent now — is still the tool of the trade on Wall Street and the big money players are using their influence to steer companies to a better future with a...

April 29, 2021
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29Apr

Biggest Pension Fund in Denmark Takes a Hit on Its Bond Exposure

Denmark’s biggest pension fund, ATP, lost almost $200 million on its investment portfolio after its exposure to bond markets backfired. “ATP’s current investment strategy is relatively heavily exposed to interest rates, and this makes it sensitive to the rising interest rates that we saw in the first quarter,” Chief Executive Officer Bo Foged said in a statement. The fund, which oversees about $150 billion in assets, is trying to get parliamentary approval to shift into riskier corners of the market after the government...

April 29, 2021
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29Apr

Pension reform throws harsh light on Irish retirement savings

It was fitting somehow that the biggest regulatory reform of Irish pensions was announced with no fanfare. Just a press release issued without notice at the end of the working day – after 5:30pm. Pensions are a difficult sell and, at first sight, this latest landmark reform is an indicator of why. Called IORP II, the acronym is even more impenetrable than its actual title – the EU directive on the activities and supervision of institutions for occupational retirement provision. Essentially, it is...

April 29, 2021
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