August 2022

Pensions, Crypto, And Trust: Digital Assets And Retirement Funds

Retirement planning is the primary objective of retail investors. Indeed, 47% of respondents in the 2022 CFA Institute Investor Trust Study indicated saving for retirement was their most important investment goal. Yet the conventional pathway to retirement savings - the traditional stock and bond portfolio - is not as effective as it used to be. Weaker diversification, declining real returns, and rising inflation all present major challenges to both defined benefit and defined contribution (DC) pension funds. As funds struggle...

Green bonds poised for revival after shaky start to 2022 — report

Green bond issuance got off to a shaky start in 2022, but picked up in the second quarter, according to data from the Climate Bonds Initiative published on Thursday . The investor-focused non-profit organization promotes large-scale investment in the low-carbon economy. It screens self-labeled green bonds, including green, social, sustainability, sustainability-linked and transition labeled debt. In the first half of 2022, issuance of bonds aligned with international climate targets reached a combined volume of $417.8 billion, a 27% drop from the...

CFA Society Germany proposes merger of occupational with private pension systems

CFA Society Germany, the association of investment professionals, has proposed the merger between the country’s occupational and private pension systems under a format based on models in place in Sweden and Canada to cut administrative and sales costs that would lead to an increase in the level of pensions. The models would cater for two different market segments, one including savers opting for a standardised, state-run pension product, and another for savers who demand control over investments, the association said...

Perú. Mujer pierde S/39,000 de su AFP porque otra persona hizo el retiro: “Mi cuenta está en cero”

Una madre de familia denunció que le robaron los S/ 39,000 que tenía ahorrado en su cuenta de AFP Integra durante largos años de trabajo. En la denuncia, la mujer señaló que intentó acceder a su solicitud pero se dio cuenta que alguien más había hecho el trámite. Se trata de Ruth, quien dejó pasar todos los retiros de la AFP hasta el último. Sin embargo, al verse en la necesidad del dinero, decidió sacarlo todo pero ya no tenía...

Coca-Cola Consolidated to terminate primary U.S. pension plan

Coca-Cola Consolidated Inc., Charlotte, N.C., plans to terminate its primary U.S. pension plan. The consolidated bottling company said it began the process of terminating the plan during the first half of 2022, according to its 10-Q filing with the SEC on Tuesday. Read also CF Industries offloads $375 million in U.S. pension liabilities In the filing, the company said it plans to offer a lump sum to "certain plan participants" before completing the purchase of a group annuity contract from an insurance...

Costa Rica. ¿Qué hay detrás de las pérdidas de los fondos de pensión complementaria?

Rendimientos anuales de los fondos del ROP están entre el -2,34% y -4,25%, al cierre del primer semestre, niveles que no se veían desde hace 15 años; sin embargo, la rentabilidad histórica sigue en positivo ¿Qué pasó con el ROP para que en el estado de cuenta pasara de mostrar ganancias, a finales del 2021, a pérdidas en junio pasado? La causa de ese resultado adverso no es una sola y más bien interviene una combinación de factores, como el...

Colombia. Qué pasará con la cotización de los trabajadores independientes en Colombia, esto fue lo que dijo el ministro de Trabajo

Los cálculos estiman que en Colombia hay cerca de 10 millones de trabajadores independientes, contratistas y rentistas de capital; como estos no están bajo algún tipo de contrato laboral y no tienen un ingreso mensual fijo, la tributación por renta se efectúa bajo el 40 % de lo percibido. Pero, la Corte Constitucional le dio un plazo de dos legislaturas al congreso para regular dicho aspecto y se venció el término y ni si quiera se debatió. Por esto,...

Kenya. Risk-averse pension schemes bag higher returns

Pension funds that eschew risk are reaping the benefits of their conservative approach to investments, outperforming their more aggressive peers whose returns are being dented by bigger exposure to underperforming equities and offshore assets. Conservative schemes, which on average allocate over 80 percent of their assets under management to risk-free, stable yielding government securities, recorded a return of 2.9 percent in the year to June 2022, industry analysis done by fund administrator Zamara shows. Schemes with a moderate approach to investment,...

Sensitive data of Indian pension fund holders exposed online

A huge cache of data containing the full name, bank account number and nominee information of pension fund holders in India has surfaced online. Security researcher Bob Diachenko found two separate IP addresses storing more than 288 million records — with some 280 million records available under one IP address and about 8.4 million a part of the second IP address. Both IP addresses were publicly exposing the data to the internet but were not protected by passwords, the researcher...

U.S. corporate pension plan funding holds steady in July above 93% – 3 reports

U.S. corporate pension plan funding ratios remained relatively stable in July after months of poor investment returns had negatively affected the health of the plans, according to three new reports. Legal & General Investment Management America in its report estimated the average funding ratio of the typical U.S. corporate pension plan rose to 95% as of July 31 from 94% a month earlier. LGIMA in its latest Pension Solutions Monitor cited positive equity returns during the month, noting the S&P 500...