September 2024
04Sep

US. Pressure Mounts on Public Pension Funds to Divest Chinese Investments

As the world revisits decades of globalization and diminishes the interdependence and integration of the world’s economies, and as interests of China and its allies become less aligned with the interests of the U.S., Europe and their blocs, many institutional investors are caught between generating alpha and legislators who want their states’ funds to be completely divested from the world’s second-largest economy. Geopolitical worries have led legislators in several states to mandate that their state pension funds divest from Chinese...

September 4, 2024
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04Sep

In brief: EU strikes investment facilitation deal with Angola

The European Union has struck a first-ever deal with Angola to stimulate foreign investments needed to achieve sustainable development goals. The EU-Angola Sustainable Investment Facilitation Agreement (SIFA) aims to boost Angola’s appeal to foreign investors by making investment regulations more transparent, promoting the use of e-government for authorisations, and enhancing stakeholder involvement. Angola made up 8% of the EU’s foreign direct investment in Africa, or €21.7bn, in 2022. It invested €2.9bn in the EU in the same year, making it the country’s main trade and investment...

September 4, 2024
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03Sep

Danish pension fund leaves Net-Zero Asset Owner Alliance

Danish pension fund PKA has withdrawn as a member of the Net-Zero Asset Owner Alliance (NZAOA), the fourth exit from the initiative and the first in more than a year, Responsible Investor can reveal. The €59.1 billion fund, which manages four pension plans within the social and healthcare sectors, joined the NZAOA in March 2021 and withdrew its support from the UN-backed group, which is part of the Glasgow Financial Alliance for Net Zero (GFANZ), on 31 August. A spokesperson for...

September 3, 2024
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August 2024
30Aug

Collective Defined Contribution (CDC) Schemes: Assessing Capacity for Alternative Investments

By Aili Chen, CFA As pension systems adapt to changing economics and demographics, there is growing interest in collective defined contribution (CDC) schemes as they offer a different approach to retirement savings compared to defined benefit (DB) schemes. Instead of providing a guaranteed pension payment, CDC schemes provide workers with a pot of money to use in retirement, alleviating corporate sponsors of the responsibility and cost associated with providing lifetime guaranteed benefit payments. The size of the pension pot can...

August 30, 2024
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30Aug

Collective Defined Contribution (CDC) Schemes: Assessing Capacity for Alternative Investments

By Aili Chen, CFA  As pension systems adapt to changing economics and demographics, there is growing interest in collective defined contribution (CDC) schemes as they offer a different approach to retirement savings compared to defined benefit (DB) schemes. Instead of providing a guaranteed pension payment, CDC schemes provide workers with a pot of money to use in retirement, alleviating corporate sponsors of the responsibility and cost associated with providing lifetime guaranteed benefit payments. The size of the pension pot can...

August 30, 2024
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28Aug

Finland pension funds consider divesting from logging firm after environmental violations

Finnish pension funds including Varma and Elo, both based in Helsinki, are considering divesting from forestry firm Stora Enso with the company being accused of sexism and environmental crimes in the country’s northern region of Suomussalmi, according to an emailed comment to Pensions & Investments. On Aug. 15, logging machinery belonging to Stora Enso was repeatedly driven over a shallow river within a forest in Suomussalmi, and in doing so killed thousands of endangered freshwater pearl mussels, as reported by Finnish public broadcasting...

August 28, 2024
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23Aug

U.S. asset managers worried about interest rate uncertainty, cautious on AI

While worries about inflation have subsided, asset managers in the U.S. are concerned about uncertainties surrounding interest rates, capital funding and how generative artificial intelligence will play out across the industry over the long term, according to the latest “Asset Management Industry Pulse” survey from KPMG. The survey found that almost two-thirds (63%) of asset managers expect the Federal Reserve will commence cutting interest rates in the second half of 2024, while the remaining 37% think the central bank will hold...

August 23, 2024
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21Aug

Money managers stand firm on AI stocks in Asia

Artificial intelligence stocks led the market rout that took place in late July and early August, but fund managers say there still are AI companies with structural growth potential, particularly in Asia. Some investors might associate AI stocks with big names such as Nvidia, Meta Platforms, Amazon.com and Tesla, but the AI universe also includes a slew of manufacturers that enable the technology, the managers said. “People bucket AI into one big thing, but we look at it as a part of it...

August 21, 2024
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20Aug

US pension funds react to Republican probe of Climate Action 100+

Public pension funds in the US have pushed back against a Republican probe into the US members of Climate Action 100+, warning that climate engagement is consistent with their fiduciary responsibilities. At the end of July, Republican lawmakers on the House Judicial Committee sent a letter to more than 130 investor signatories – or recent ex-signatories – of CA100+, demanding information on actions they planned to take as part of the initiative, which Republicans call a “climate cartel”, as well...

August 20, 2024
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July 2024
31Jul

Pension funds target index providers as UK relaxes listing rules

A group of UK pension schemes are engaging index providers on their inclusion rules following recent listing changes in the UK.  This month, the Financial Conduct Authority (FCA) confirmed reforms to the UK’s listing regime in a bid to encourage more companies to list.   The new rules will merge the premium and standard segments on the London Stock Exchange into a new single segment, meaning firms choosing to IPO in the UK will have more flexibility to adopt dual-class share structures. Leading up and in...

July 31, 2024
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