May 2025
20May

UK. Impact Investing Principles for Pensions updated to reflect changing market environment

The Impact Investing Principles for Pensions have been updated to help UK pension fund trustees better align their investment decisions with long-term impact goals and fiduciary duties. Originally launched by the Impact Investing Institute and Pensions for Purpose in 2020, the principles have been revised to reflect five years of market experience and legal changes, including rising expectations from pension savers and evolving regulatory demands. The updated guidance, which also includes The Global Impact Investing Network’s "significant" contribution and endorsement, seeks...

May 20, 2025
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19May

US. Rising Discount Rates Drove Down Pension Liabilities in April

The largest U.S. corporate pension funds had a modest recovery in April, as rising discount rates reduced plan liabilities enough to offset a shaky stock market. The improvement followed a rocky first quarter, which suffered from a more severe equities downturn. The funded status of the largest 100 U.S. corporate pension plans grew by $3 billion during April, while the funding ratios of these plans increased to 102.9%, up from 102.7% in March, according to Milliman. The modest rise follows...

May 19, 2025
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16May

Investor Fiduciary Duties in the Crosshairs – Targeting a Mirage

By Susan N. Gary, Keith L. Johnson & Nicholas W. Zuiker The fiduciary duties of institutional investors have become a hot issue amongst policymakers and courts, with the future financial security of millions of American workers and savers at stake. Unfortunately, many recent policy debates and court opinions on investor fiduciary duties demonstrate only a limited understanding of fiduciary duty principles.  A more complete appreciation of the full range of investor fiduciary duties is essential to inform policy and court decisions that...

May 16, 2025
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16May

UK. Mandating large pension scheme investments could risk UK growth gains

Mandating how large pension schemes invest to support UK growth could risk undermining the benefits these schemes already deliver to the UK economy, WPI Economics has suggested. The research suggested that while the UK government is seeking to attract more investment, enforced allocation rules could fail to address broader barriers already identified, such as fiscal incentives, planning system bureaucracy, and the need for a “clear and consistent” industrial strategy. WPI Economics’ report found that large UK pension funds deliver “significant” economic...

May 16, 2025
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15May

One-in-four UK pension schemes consider reducing US exposure amid tariff uncertainty

A new pulse survey by WTW reveals that a segment of UK defined benefit (DB) pension schemes are actively reconsidering their US exposures, amid mounting trade policy uncertainty and investor concern about global volatility. Polling conducted at WTW’s recent client forum (8th May) showed that while the majority of schemes are maintaining current allocations, around a quarter are now considering pulling back from U.S. assets and dollar exposure. This includes 25% of schemes considering a reduction in U.S. asset holdings. Meanwhile, 34% of...

May 15, 2025
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14May

UK relieved as government backs off from forced economic growth investment

The UK pensions industry has welcomed the launch of the voluntary initiative to be known as the Mansion House Accord, which sets government investment ambitions for UK workplace pension providers. The government has previously toyed with the idea of mandating investments in private markets, which Mansion House Compact signatories warned could lead to unintended consequences. The new initiative calls for UK workplace pension providers to invest 10% of their default funds into private markets, with 5% of the total allocated to UK assets...

May 14, 2025
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12May

Massive US pension fund announces seismic shift away from one type of risky investment: ‘Poses a real threat’

The New York State Pension Fund will be divesting over $30 million in investments across 39 coal, oil sands, and shale oil and gas companies, according to Net Zero Investor. Meanwhile, it will be pouring $2.4 billion into climate funds. The new investment includes the FTSE Russell TPI 1000 Climate Transition Index, the Oaktree Power Opportunities Fund VII, and the Vision Ridge Partners Sustainable Asset Fund IV. These funds support electrical infrastructure, renewable energy generation, agriculture adaptation, and decarbonization. The new investments are part of...

May 12, 2025
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09May

The DC Future Book 2024: in association with Columbia Threadneedle Investments

By Pensions Policy Institute This report is the tenth edition of the Pensions Policy Institute’s (PPI) The DC Future Book: in association with Columbia Threadneedle Investments, setting out available data on the Defined Contribution (DC) landscape alongside commentary, analysis and projections of future trends. Demographic and policy changes mean that, compared to previous generations of pensioners, current and future retirees will. These changes increase the risk borne by pension savers and the complexity of decisions they must make at, and during,...

May 9, 2025
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09May

The Purple Book 2024. DB pensions universe risk profile

By Pension Protection Fund The Purple Book, also known as the Pensions Universe Risk Profile, highlights trends in DB scheme funding, demographics and asset allocation. It provides us with an in-depth understanding of the risks we face from the universe of schemes we protect. The 19th edition of the Purple Book shows the strong net funding position of the universe of DB pension schemes has remained largely stable over the past year. For this year’s Purple Book, we’ve used an enhanced roll-forward...

May 9, 2025
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09May

Beyond the Bottom Line: How ESG Engagement Reshapes Pension Fund Strategy

By Allen Mendenhall & Daniel Sutter The study suggests that pension funds have developed methods to advance ESG objectives without significantly changing their investment portfolios. This approach enables them to influence corporate behavior while maintaining financial positions. However, all pensions and investors may suffer reduced returns when activism undermines value-creating investment. Pension systems that merely engage, rather than divest, may not underperform compared to other funds, but their tactics allow government-backed entities to exert extraordinary influence without sufficient accountability or...

May 9, 2025
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