March 2024
14Mar

Bitcoin ETFs to pull in pension fund investments

By Lucas Cacioli   In light of mounting evidence and evolving market infrastructure, it seems increasingly likely that institutional investors like pension funds are moving towards a tipping point where bitcoin ETFs will be seriously considered as part of a diversified investment strategy. During a private conversation I had with a pension fund CEO late into 2023, I couldn’t help but ask how far away their fund was from ever investing in something like bitcoin. “Far,” they said without hesitation. The response was unsurprising...

March 14, 2024
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12Mar

U.S. institutional investors warm to Asian digital assets

Institutional investors from the U.S. are showing interest in Asian digital assets — much more than they did a year ago — and it will likely grow as more cryptocurrency ETFs may get approved globally, said Matt Long, Asia-Pacific general manager at digital asset prime brokerage FalconX, in an exclusive interview. "Last year, there was not a lot of liquidity in the (digital asset) markets. There was less positive sentiment, more uncertainty coming out of 2022, which was annus horribilis...

March 12, 2024
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12Mar

US. Comptroller DiNapoli Declares Exxon Not Transition-Ready: Who’s Next?

The New York State Common Retirement Fund recently announced it will restrict investment in eight energy companies, including ExxonMobilXOM -0.5%, following a review of the companies' "transition readiness" to a low-carbon economy. Overseeing the $250 billion New York State Common Retirement Fund for public employees, State Comptroller Thomas P. DiNapoli defended the move, reiterating his broader ambitions to keep climate change "at the forefront" of the state pension fund's investment risk mitigation efforts. DiNapoli wants us to think he's doing so solely to protect pension fund members, not...

March 12, 2024
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08Mar

Pension Funds Market to Reach $109.1 trillion, Globally, by 2032 at 5.5% CAGR: Allied Market Research

The demographic shifts, regulatory shifts, and the growing emphasis on sustainable and responsible investing, driven by increasing awareness of environmental, social, and governance (ESG) factors are expanding the market reach of pension funds. Prime determinants of growth As populations age globally, the demand for pension products rises, compelling funds to adapt their investment strategies for long-term sustainability. Regulatory changes, aimed at enhancing transparency and accountability within the pension industry, push funds to adopt more sophisticated risk management practices. However, economic uncertainties...

March 8, 2024
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05Mar

UK. Updated: Risk of ‘unintended consequences’ from DC pension reforms

Plans to force defined contribution (DC) schemes to publicly disclose their level of investment in the UK and improve the performance of poorly performing schemes could risk having “unintended consequences” – causing plans to become more risk averse and potentially “compromising” trustee fiduciary duties. On Saturday (2 March), chancellor Jeremy Hunt announced proposals to require DC funds to disclose their levels of investment in British businesses, as well as their costs and net investment returns. He said they would also need...

March 5, 2024
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05Mar

US. Pension Funds Are Tapping Affordable Housing for High Returns — Not the Social Benefits

While affordable multi-family housing has become a key part of some pension funds’ real estate allocations, most of these funds are selecting investments that don’t have long term affordability in mind. This is according to new research from the Federal Reserve Bank of New York. The FRBNY has embarked on a research project to explore investments by institutions, specifically state pension plans, in multifamily housing. This is the second in a series of papers on the subject. The first, “Alternative...

March 5, 2024
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04Mar

U.K. pension funds to disclose domestic investment as London stock market falters

Chancellor Jeremy Hunt on Saturday said U.K. pensions will have to disclose how much they have invested domestically, in a move meant to boost the faltering U.K. stock market. Under the plan, defined contribution funds by 2027 will have to disclose their level of investment in British businesses, as well as their costs and net investment returns. Hunt said the proposal will first be reviewed by the Financial Conduct Authority. Pension funds also will have to disclose how they performed against...

March 4, 2024
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04Mar

UK. Make My Money Matter publish report analysing leading pension providers’ action on climate change

A recent report by Make My Money Matter sheds light on the relationship between finance and environmental stewardship, revealing both the potential and the shortcomings of our pension investments. The UK Pensions: Climate Action Report highlights the stark reality that while many of us contribute to pensions, few of us truly understand where our money goes and the consequences of it. Often, out of the £3 trillion that exists in UK pensions, this money is financing industries that perpetuate environmental...

March 4, 2024
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01Mar

Pension funds’ role in Brazil’s farmland controversy

Global pension funds are implicated in the deforestation of Brazil's Cerrado, impacting local communities and climate goals. In short: Armed men, allegedly hired by land claimants, have forcibly displaced local communities in Brazil's Cerrado, destroying homes and livelihoods. Major global pension funds, including TIAA, have invested billions in Brazilian farmland, contributing to deforestation and land conflicts. The destruction of the Cerrado, a key carbon sink and biodiversity hotspot, poses significant challenges to Brazil's climate commitments and local ecosystems. Key quote: “There’s a...

March 1, 2024
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01Mar

US. New York Fed Case Study Finds Pension Funds Invested More Frequently in Preserving Existing Affordable Housing than New Development

The Federal Reserve Bank of New York today released a case study focused on pension fund investments in affordable apartments. The case study, “Alternative Investments in Community Development: A Case Study of Pension Fund Investments in Multifamily Affordable Housing,” is based on a survey of a non-representative sample of seven pension funds that made commitments totaling over $2.7 billion for investments in affordable apartments during a five and a half-year period ending June 2023. The case study also found...

March 1, 2024
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