December 2021
17Dec

New EU proposal aims to make long-term investment funds more attractive

Money managers operating in the European Union anticipate an increase in alternative investment opportunities as regulators relax rules for European long-term investment funds. Under the latest proposal to reform the Capital Markets Union — an ongoing initiative aimed at creating a single pan-European financial market — the European Commission is revising how money managers can set up and market European long-term investment funds, known as ELTIFs. These collective investment strategies — currently only offered by certain alternatives money managers —...

December 17, 2021
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17Dec

Canada. CPPIB targeting high carbon emitters for long-term investments

The Canada Pension Plan Investment Board is pursuing a new strategy that involves investing in businesses with high greenhouse gas emissions and a desire to reduce them. The strategy, which is published in a new report, aims to identify companies committed to creating value by lowering their emissions in a manner that’s consistent with the CPPIB’s own timeframe. The strategy was devised by Bill Rogers, managing director and head of sustainable energies; Mike Conrad, principal in sustainable energies; and Art Pithayachariyakul,...

December 17, 2021
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09Dec

Will everything be responsible investing?

Impact investing, responsible investing, environmental, social and governance investing – these are all different branches coming from the same tree and have been rising in popularity. As interest in climate-related issues has been growing for some time, more and more investors have been looking towards making their money work for the greater good. The consumer-facing campaign Make My Money Matter has played a key role in encouraging people to explore where their pensions are invested, as well as how they could...

December 9, 2021
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08Dec

US. Public Pensions Need a Shift in Investment Strategies

A report, which says their investments have underperformed since the 2008 financial crisis and are costly, suggests officials should switch to purely passive investing. Public employee pension funds, endowment funds and other nonprofit institutional investors in the U.S. have underperformed properly constructed, passively investable benchmarks by a wide margin since the global financial crisis of 2008, contends Richard Ennis, an early pioneer of quant investing and co-founder of U.S. investment consultancy EnnisKnupp, in a research paper. A composite of 46 large...

December 8, 2021
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Canadian pension funds to increase stakes in Mexico's IDEAL
08Dec

Canadian pension funds to increase stakes in Mexico’s IDEAL

The controlling shareholders of Mexican construction company IDEAL (IDEALB1.MX), part of the business empire of tycoon Carlos Slim, signed an agreement for two Canadian pension funds to increase their shareholdings in the firm, IDEAL said on Tuesday. The accord, which is still pending corporate and government approval, would see Ontario Teachers' Pension Plan Board and Canada Pension Plan Investment Board up their holdings by 8.4% and 1.1% respectively, bringing each of their total holdings to 24.8%, IDEAL said in a...

December 8, 2021
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Iceland’s Gigantic Pension Fund Is Creating a Headache at Home
07Dec

Iceland’s Gigantic Pension Fund Is Creating a Headache at Home

Iceland is confronting the trouble that comes with having a pension system so successful in amassing savings for future retirees that it was recently rated the best in the world. With assets now at about double the size of the north Atlantic island’s economy, the government is considering allowing investment managers to diversify by buying up more securities abroad, prompting the central bank to urge caution. The rules currently limit the share of overseas holdings in pension assets at 50%. “The...

December 7, 2021
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Few Companies Make The Hard Tradeoffs To Reduce Carbon Emissions
06Dec

Few Companies Make The Hard Tradeoffs To Reduce Carbon Emissions

The law firm Crowell & Moring recently released a survey-based report that looked at how companies are navigating pressures to improve their environmental performance. The company surveyed 225 executives whose jobs included environmental, social, and governance issues. 56% of respondents said their company does NOT measure its carbon footprint. What may surprise many people is that increasing pressure from investors is the third most common reason - cited by one third of respondents - for companies to adopt environmental goals....

December 6, 2021
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November 2021
30Nov

Why Is Africa’s Largest Pension Pulling Out of Africa’s Largest Asset Management Firm?

Africa’s largest pension, the South Africa-based Government Employees Pension Fund (GEPF), allowed its contract with the country’s Public Investment Corporation (PIC) to lapse, effectively pulling $4.4 billion out of the continent’s largest asset manager. Read also Here Are The Regulatory Changes In The Kenyan Pensions Industry For the $110 billion pension, this equates to approximately 4% of its total assets under management (AUM). The contract was five years long and expired this past March. Read also Bosnia miners end 9-day protest after...

November 30, 2021
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26Nov

Brazilian bill seeks to make infrastructure bonds appealing to global pension funds

Stakeholders in Brazil’s infrastructure sector are hoping for the senate to approve a bill that extends tax breaks on infrastructure debentures, in order to attract global players to invest in financing long-term projects. The country's lower house approved the bill in July and it is now being considered by the upper house. "We’re carrying out several bidding processes that can’t be financed solely with bank financing. We’ll need deep engagement from the capital market, and infrastructure debentures will play a key...

November 26, 2021
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26Nov

An Overview of Retirement Income Planning

By Wade D. Pfau Retirement income planning has emerged as a distinct field within financial planning with the realization that risks change dramatically in retirement. The combination of longevity risk, increasing market risk triggered by taking distributions from assets, and spending shocks create new challenges. Wealth management has traditionally focused on accumulating assets without applying further thought to these differences happening after retirement. Retirees experience reduced capacity to bear financial market risk once they have retired. This calls for different...

November 26, 2021
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