May 2023
19May

UK. DC funds adoption of ESG investments accelerates

How defined contribution (DC) schemes invest has been a topic of much debate with various government consultations threatening change and offering opportunity in equal measure. The master trust sector clearly wishes to be seen to be driving forward the debate, aiming to set the investment agenda and also offer more sophisticated investments to members. With the news that there is a 66% chance we will pass the 1.5ºC global warming threshold between now and 2027 it is clear we need...

May 19, 2023
News, ,
Read more...
19May

Africa’s vast potential lures U.S. investors in search of returns, impact

Africa for years has struggled to attract the notice of — and money from — American pension funds. But in the past two years, U.S. pension fund trustees and other billion-dollar asset owners appear more open to investing in some of Africa's 50-plus countries, particularly in infrastructure. Institutional investors are encouraged by a U.S. government-led geopolitical charm offensive in Africa, and are wagering on higher-risk returns amid inflation, Fed rate hikes and uneven portfolio performance at home. And pension funds may one...

May 19, 2023
News,
Read more...
12May

Canada. British Columbia Investment Management hits pause on China deals

British Columbia's public pension manager has paused direct investments in China, the latest institutional investor to rethink its exposure to the world's second-largest economy due to geopolitical risks. A senior executive from British Columbia Investment Management revealed the policy during testimony this week to a Canadian parliamentary committee. Ontario Teachers' Pension Plan has made a similar move, suspending new investments in private assets in China, Bloomberg reported in January. BCI still has Chinese investments, mostly through public markets and index funds,...

May 12, 2023
News, , ,
Read more...
12May

Impact investments meeting financial expectations, exit study finds

The majority of impact investments are meeting or exceeding financial performance expectations, according to a study released Wednesday by ICM Institute, a non-profit research arm of the Impact Capital Managers, an association of private capital funds, and global law firm Morrison Foerster. The report, "Alpha in Impact: Strengthening Outcomes: Impact and Financial Value at Exit," covers a sample of 230 exits from ICM members managing market-rate impact funds. It found that 65% of impact exits met or exceeded financial performance...

May 12, 2023
News,
Read more...
05May

Swedish watchdog to scrutinize Alecta over U.S. bank investments

Sweden's financial watchdog will investigate Stockholm-based pension fund Alecta's risk management in the wake of its investments in collapsed U.S. banks. Finansinspektionen, the Financial Supervisory Authority of Sweden, will in particular investigate how Alecta measures risks in various investments, the watchdog said in a notice Thursday. The starting point for its investigation is the 1.12 trillion Swedish kronor ($108.4 billion) pension fund's investments in Silicon Valley Bank, First Republic Bank and Signature Bank. The pension fund had a total 12 billion...

May 5, 2023
News, ,
Read more...
04May

U.K. Pension funds plan more infrastructure investments

A majority of U.K. pension funds (62%) expect to increase investment in British infrastructure over the next 12 months and prioritize it over overseas markets, according to a survey conducted for alternative investment fund GLIL Infrastructure. GLIL is a partnership of U.K. pension funds managed by Local Pensions Partnership Investments. The survey of executives at 300 pension funds, including private and local government funds, was conducted by Censuswide for GLIL Infrastructure in February. It found that for 36% of respondents, the...

May 4, 2023
News,
Read more...
03May

US. DeSantis signs anti-ESG bill one day after state clean-energy investment

Florida Gov. Ron DeSantis, a likely 2024 Republican presidential candidate, signed a bill Tuesday he touted as the latest salvo in his war against ESG investing, one day after the state's investment office announced a significant investment in clean energy. The law requires the Florida State Board of Administration, Tallahassee, to make investment decisions based "solely on pecuniary factors" and not include environmental, social and governance considerations. The board, which consists of Mr. DeSantis, Chief Financial Officer Jimmy Patronis, and...

May 3, 2023
News, , ,
Read more...

April 2023
28Apr

Bank of England tells insurers to moderate their push into pensions

The Bank of England warned insurers on Thursday not over extend themselves in grabbing more business from pension schemes eager to offload risks. Charlotte Gerken, executive director for insurance supervision at the Bank, said that in the face of considerable temptation to capture business opportunities, insurers need to exercise caution. Bulk purchase annuities (BPA) are long-term policies from life insurers for company defined benefit, or final salary, pension schemes. Rising interest rates have improved funding levels of pension schemes, making them cheaper...

April 28, 2023
News, ,
Read more...
26Apr

Pension fund PGGM warns on dangers of social greenwashing

The principal director for responsible investments at PGGM Investments, the investment manager for the €277 billion ($306 billion) Dutch pension fund, has pointed to the continued challenges associated with measuring the social impact of investments, highlighting the reputational dangers of social greenwashing. “You encounter liberal definitions. There is some inflation in the terms that we want to be very cautious about. You don’t want to overstate [investors’] social contributions,” said Hans Op’t Veld, principal director for responsible investments at the...

April 26, 2023
News, ,
Read more...
24Apr

UK. BP facing green rebellion at annual shareholder meeting

BP faces a green rebellion at its annual shareholder meeting on Thursday as some of Britain’s biggest pension funds prepare to demand the company toughen its plans to reduce its emissions by 2030. The National Employment Savings Trust (Nest), which represents about 11m individual workplace pensions, plans to back a resolution put forward by climate campaigners at Follow This, which calls for BP to align its emissions reduction plans with the Paris agreement. The campaign group has also won support from...

April 24, 2023
News, ,
Read more...