January 2024
31Jan

Australia regulator scrutinises pension funds over unlisted asset pricing

Australia's prudential regulator said on Wednesday it will review how sections of the A$2.5 trillion ($1.7 trillion) pension fund sector value unlisted assets and that it is already working with several funds whose practices need to improve. As part of its supervision priorities for the next six months, the Australian Prudential Regulation Authority said it will conduct a "deep dive review" into valuation practices at a number of large and mid-sized pension funds. The unnamed funds have material holdings of unlisted...

January 31, 2024
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29Jan

DC funds more open to real assets: Aviva

Seven in 10 defined contribution (DC) schemes plan to increase allocations to real assets in the next two years, according to new research from Aviva Investors. The company’s latest Real Assets Study found that 69% of corporate DC schemes planned to increase their allocation to asset classes such as property and infrastructure over the next 24 months. This was up from 51% in the 2023 edition of the study. The survey included schemes from the UK, Europe, Asia Pacific and...

January 29, 2024
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26Jan

Asset Manager, Pension Fund & ESG

By René Maatman & Kleis Broekhuizen  When it comes to sustainability, much is expected of pension funds. Of course, they must ensure value-proof pensions. They are also expected to contribute to the environment, climate, human rights, social justice, and corporate governance. ESG must be factored into investment policy. But how and to what extent? There are varying preferences within the population of pension participants. Politicians, action groups and NGOs have their own beliefs. Pension fund boards must make complex trade-offs. How...

January 26, 2024
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26Jan

Measuring the unintended consequences of public pension fund disinvestment from fossil fuel companies

Environmentalists are pursuing new strategies to pressure major polluters to decarbonise, including calling for widespread disinvestment from companies currently in the fossil fuel business. This column presents evidence that this strategy may be misguided. Focusing on public pension funds in the US, the authors find that companies reduced their greenhouse gas emissions when stock ownership by green funds increased, and did not alter their emissions when ownership by non-green funds changed. Ownership and constructive engagement were more effective than...

January 26, 2024
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25Jan

Money managers divided over Chinese equities

Global money managers are split as to whether buy signals are flashing for China stocks right now, even as they agree the equity market does look cheap. The gap between Chinese company market capitalizations and the U.S. stock market was $42.5 trillion as of market close Jan. 23, based on Pensions & Investments' calculations using Bloomberg data. Bloomberg reported Jan. 23 that Chinese stocks have lost more than $6.3 trillion in value from a February 2021 peak, vs. a $5.3 trillion...

January 25, 2024
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24Jan

UK pension funds turn to renewable energy investment

UK pension funds and insurers are keen to increase allocations to renewable energy in the coming years, according to new research. A survey by AlphaReal, a specialist real assets manager, found that a majority of pension funds and insurers planned to increase their allocation to renewable energy in the next year. The survey, which included institutions with a combined £360bn in assets under management, found that 90% of respondents planned to increase their allocation to renewables, with the remaining 10% open...

January 24, 2024
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19Jan

The Most Often Overlooked Step In Retirement Planning

When it comes to retirement planning, conversations often center around portfolio management and investment strategies—what I like to call the bling of the financial world. Generally, you sit down with an advisor and begin your work together by listing all your assets and expenses. They, in turn, provide you with a thick report of projected returns, inflation assumptions, and a—likely daunting—required savings number for your retirement nest egg. More often than not, they then offer a fancy investment product or...

January 19, 2024
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17Jan

European pension funds turn to co-filing at Shell to up climate credibility

Major European pension funds are among a record number of investors who have agreed to co-file a shareholder resolution at Shell with NGO Follow This in a bid to get the oil and gas major to set tougher emission reduction targets. The biggest support Follow This received previously was co-filing from 17 investors for a shareholder resolution at TotalEnergies’ annual general meeting last year, helping it secure 30% of votes. The group of co-filers for this year’s Shell resolution is bigger and...

January 17, 2024
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17Jan

Navigating Pension Investments: A Reader’s Concern and an Expert’s Advice

In an era where financial security is a growing concern, one reader, Sophie, finds herself grappling with pension investments and the realization of her lower risk tolerance. Aged 43, Sophie harbors fears about her current pension value of 115,985, compounded by the goal of retiring with an annual income of 30,000 plus the state pension. Understanding Sophie’s Pension Portfolio Sophie’s pension portfolio is diversified across three different pensions. She holds two with Aviva from previous employers, which she had reinvested, leading...

January 17, 2024
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12Jan

The State of Pensions 2023: Year End Update

By Anthony Randazzo & Jonathan Moddy  In 2023, U.S. public pension funds remain fragile. According to Equable Institute’sState of Pensions 2023 report, state and municipal retirement systems are on track to miss their investment targets and are unlikely to see meaningful improvements in their unfunded liabilities or funded ratio in 2023. In this post, we will look at pension funding trends and detail the health of pension funds in an increasingly unpredictable market and where risky investments are more popular than ever....

January 12, 2024
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