March 2022

A Descriptive Analysis on Effect of Corporate Governance on Investor’s Decision

By Dsouza Prima Frederick The article studies the impact of internal factors and external factors influencing an investor’s investment decision. The information for the study was obtained from secondary sources like journal papers, magazines and books. Human psychology has an internal role in investing choice, whereas corporate governance is an external influence. Corporate governance plays a major role in the investment decision-making process by revealing all elements of business information, but investors understand the information according to their own assessments and assumptions...

UK. Pension schemes still playing ‘catch-up’ on ESG despite increased awareness

Just 10 per cent of pension schemes have a standalone policy on environmental, social and governance (ESG) issues, research from Mercer has revealed, prompting concerns that pension schemes are playing 'catch-up' on improving ESG outcomes. The analysis, which utilised data from Mercer’s Responsible Investment Total Evaluation (Rite) analysis of more than 650 UK occupational pension schemes, also revealed that only 6 per cent of schemes have a standalone policy related specifically to climate change. And whilst stewardship was carried out for...

February 2022

Global Pension Assets Study – 2022

By Thinking Ahead Institute The Global Pension Assets Study estimates global pension fund assets across 22 major pension markets (the P22). These geographies now total a record US$56.6 trillion in pension assets and account for 76% of the GDP of these economies. The study, conducted by WTW and the Thinking Ahead Institute since the 1990s, includes an analysis of the seven largest markets (the P7): Australia, Canada, Japan, Netherlands, Switzerland, UK and US comprise 92% of total pension assets, unchanged...

​Pension funds neglect human capital when setting investment policy, say experts

Pension funds should always take into account human capital, or the career perspective of their members, when determining how much risk they can take with their investments. But they too often fail to do this, according to experts. The degree of certainty of future labour income affects the risk capacity of pension participants; the more predictable and stable their income, the more risk they can shoulder, argued Thomas Pistorius, a risk manager at Pensioenfonds Vervoer, the €37bn fund for the...

January 2022

UK. Can the FCA tackle greenwashing?

For those who care about environmental, social and governance considerations, watching the glacial progress towards standardised ESG disclosures has been frustrating. There are more working groups, task forces, frameworks and roadmaps than you could shake a stick at (I have never tried shaking a stick at a working group, and it would probably get me fired, but you get the idea). Dare I suggest that we might even spare some sympathy for the Financial Conduct Authority, which has the job of...

US. DC Pension Faces Whistleblower Suit Alleging Investment Fee Misreporting, ‘Toxic Culture’

A whistleblower has filed a lawsuit against the District of Columbia Retirement Board alleging that it retaliated against her for saying that the fund wrongly reported investment management fees and was not monitoring private investment agreements. The lawsuit was filed by Erie Sampson, the fund’s general counsel and ethics counselor, in Washington, D.C. on December 30. The lawsuit describes a “toxic culture of fear and retaliation” at DCRB and alleged the pension fund had audit and compliance issues, which could be...

November 2021

Pension funds commit $130 billion to fight climate change at the COP26 summit

Nordic and British pension funds on Tuesday committed to invest $130 billion by 2030 to fight climate change, and report annually on the progress of their green investments. Denmark said $75 billion of the funds were new commitments. The pledge, launched at the COP26 climate summit in Glasgow, Scotland, included asset owners in Sweden, Norway, Finland, Denmark, Iceland, the Faroe Islands and the United Kingdom, plus a fund from Greenland. "Green transition requires massive investments. Governments have to do their part...

October 2021

Firms Are Shaking Up Benefits To Keep Workers From Quitting. The Retirement Plan Could Be Next.

As resignations soar and the war for talent heats up amid a tight labor market, companies are turning to any tool at their disposal—even the normally staid retirement plan—to attract and retain workers. KPMG, the global accounting and consulting firm, announced to employees on Monday the most significant overhaul to its benefits plan in more than 10 years. The firm said it will reduce the cost of health premiums to employees by 10%, expand its paid family leave and add...

Pensions and ESG: An Institutional and Historical Perspective

By P. Brett Hammond & Amy O'Brien Sustainable investing is growing into its moment. Funded pensions, which were among the first institutions to respond to sustainability concerns, are showing renewed interest in better ways to reflect responsible investing objectives, along with regulators, asset managers and shareholder groups. Looking back, the principal elements of sustainability—environmental, social and governance (ESG)—all have different origins and took different pathways. Looking across, sustainable investing developed differently depending on region and country. Viewing it today, we...

Sustainability agreements and antitrust – three criteria to distinguish beneficial cooperation from greenwashing

By Maurits Dolmans This paper discusses European competition law as it applies to agreements between market players to reduce, eliminate, or compensate for greenhouse gas emissions. It places these in an economic context, discusses the relevant provisions of the European treaties and applicable case law of the European Court of Justice. It identifies three broad criteria for the non-application of the prohibition of restrictive agreements, or exemption, to sustainability agreements. Source: SSRN 507 views