November 2021
17Nov

US. Major Pension Fund Adds Leverage As Assets Push Half A Trillion

The CalPERS Pension Fund, has resolved to change its investment allocation next year. The new asset mix reduces public equity exposure adding exposure to private equity, fixed income and real assets. However, the more interesting angle is that total exposure for the fund is now 105% rather than 100%. That is to say, the fund will borrow to fund its investment portfolio. Read also US. For a workforce in flux, retirement plans and benefit options may be increasingly important Leverage Though the fund...

November 17, 2021
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13Nov

The State of Retirement Income: Safe Withdrawal Rates 

What’s a safe withdrawal rate for retirees? We estimate 3.3%. However, there are various factors that could affect this percentage, resulting in the retiree withdrawing a significantly higher amount. This report explores ways that retirees can make their savings last longer without compromising their standard of living. Source @Morningstar

November 13, 2021
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10Nov

UK. Advisers could be forced to ask about sustainability

I am writing this piece from the relative comfort of an Avanti train, heading home from Glasgow having recharged my batteries somewhat by listening to some great presentations at COP26. Although I could have seen more of the major announcements had I watched it online, the experience of ‘being there’ was quite something. I particularly enjoyed getting the sense that there are so many of us working on different aspects of the sustainability puzzle. An event organised by Make My Money Matter...

November 10, 2021
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09Nov

Impact investing: A brief guide to responsible investing

Impact investing is gaining more attention among investors today, especially with the Millennials and Generation Z. The growing popularity of impact investing is not anecdotal, as a rising number of asset owners and managers have turned to impact investing in pursuit of meaningful financial and social gains. In a nutshell, impact investing focuses on generating positive returns for investors and society in general. What is Impact Investing? Impact investing is a strategy where you put your money to work not only to acquire...

November 9, 2021
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08Nov

US. Newly Flush With Cash, Retirement Funds Struggle to Find Appealing Investments

State and local pension funds are reaping a historic windfall thanks to billions of dollars in record market gains and surplus tax revenues. Now they need to decide what to do with the money. It is a bittersweet dilemma that the chronically underfunded retirement systems share with many household and institutional investors around the country. Just when they finally have cash to play around with, every investment opportunity seems perilous. Read more @WSJ 676 views

November 8, 2021
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08Nov

UK. More than 130 MPs call for parliament pension fund to divest from fossil fuels

More than 130 MPs, including over half of the parliamentary Labour party, have signed a cross-party letter to their pension fund calling on it to divest from fossil fuel companies to “ensure that our pensions are not funding climate disaster”. The letter, to be delivered on Monday to trustees of the Parliamentary Contributory Pension Fund (PCPF), applauds recent reductions in investments in fossil fuels, but adds: “We believe you must go a step further, divesting from the fossil fuel industry...

November 8, 2021
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04Nov

Can ethical investing really help in the fight against climate change?

By Ralph Benson What links climate change, the Black Lives Matter movement and the Facebook whistleblowing controversy? They’re all impossible to ignore when it comes to investing your money ethically. As global leaders and climate activists gather in Glasgow this week for COP26, in the face of the threat of climate catastrophe, the term ‘ethical’ will be bandied about in relation to all topics, from government finances to corporate responsibility. We, as potential pension investors, can play our part in this by...

November 4, 2021
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03Nov

Knowing the difference between ethical, responsible and impact investing

Climate change awareness and environmental concerns have never been more important, and over the past few years these issues have been spoken about in abundance when describing financial investments. Three phrases in particular have been commonly used to describe investment products and strategies, but there is still confusion as to their exact meaning. Mike Appleby, investment manager on the Liontrust Sustainable Investment team, outlined the difference between ethical investing, responsible practices and impact investing. “Ethical investing looks to avoid controversial industries such...

November 3, 2021
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01Nov

South Africa Pension Funds To Exclude Non-CBDC Crypto Assets

South Africa Restricts Non-CBDC Crypto The South African government, in an effort to push its CBDCs, has introduced legislation that restricts non-CBDC crypto from being invested in pension funds. The new regulations are in sharp contrast to the older regulations that allowed portfolio managers to invest around 2.5% of funds into the category of “other assets,” which also included crypto assets. The new rules, however, exclude cryptocurrencies, citing a lack of protection. The Fairfax County Police Officers Retirement System in the...

November 1, 2021
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October 2021
29Oct

Pensions Should Stop ‘Hibernating’ Investments, JPMorgan Says

Equities, hedge funds, real estate and emerging-markets sovereign debt are among the investment categories that can help pensions “fine-tune the level of risk relative to the expected return,” the asset manager said Thursday in its report. Defined-benefit employee retirement plans have leaned on long-duration fixed-income securities for too long, according to the report. Pensions should change the de-risking strategies they’ve pursued since the 2008 financial crisis to embrace a wider array of investments, JPMorgan Chase & Co.’s asset-management unit said...

October 29, 2021
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