July 2022
26Jul

German government invests pension assets in oil, gas firms despite ESG index switch

The German government continues to invest public pension and social security assets in oil, coal and gas companies on the equity market, despite announcing that it would switch to an ESG index by the end of the year. According to a report by investigative documentary series Panorama, the German government invests a total of €573.59m in oil, gas and coal companies on the equity market to finance the pensions of civil servants. The government has confirmed that it has invested more...

July 26, 2022
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25Jul

The Growth In Responsible Investment Funds

The concept of socially responsible investing (SRI) has been around for hundreds of years. From the Quakers (aka, the Religious Society of Friends) prohibiting members from participating in the slave trade in 1758 to the exclusion of “sin stocks” in the 1920s to supporting the civil rights, environmental, social, and anti-war movements in the 1960s to the modern day focus on Environmental, Social, and Governance investing practices—which takes a holistic view that helps stakeholders understand how an organization manages...

July 25, 2022
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22Jul

Caisse admits $150-million investment in bankrupt Celsius ‘raises a number of questions’

Quebec’s pension manager broke its silence about its investment in Celsius Network LLC, saying it will “take time” to resolve claims around the bankrupt cryptocurrency lender but admitted the investment didn’t pan out. Caisse de Dépôt et Placement du Québec invested $150 million in Celsius in October as part of a $400 million funding round co-led by WestCap Investment Partners LLC. Equity holders are likely to be wiped out after Celsius filed for Chapter 11 bankruptcy protection in a U.S. court,...

July 22, 2022
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22Jul

Defined Benefit Risk Phase 2: Expert Interviews

By David G. Pitts Over the course of 2020 and 2021, the research team interviewed the following subjects: • Chief Financial Officer • Chief Risk Officer • Multiemployer Plan FSA • Public Plan FSA • Investment Consultant / FSA • Outsourced Chief Investment Officer / FSA • Canadian FSA / CERA Each interview lasted approximately one hour. All interviewees are senior practitioners in the defined benefit space. The interview notes include a faithful representation of the ideas discussed, with some changes in minor details to ensure the anonymity of the respondent. Executive...

July 22, 2022
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22Jul

Pension Fund Environmental, Social and Governance Risk Disclosures: Developing Global Practice

By International Actuarial Association  The paper summarizes the main features and trends in pension fund Environmental, Social and Governance (ESG) risk disclosures around the world available to regulators, members and the public. It includes reference to statutory requirements, general practice and voluntary disclosures in relation to pension fund accounts and other documents made available to members, such as benefit/fund statements. We discuss the financial and reputational risks which ESG issues can present to pension fund investments and to long-term performance. We refer...

July 22, 2022
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22Jul

New Evidence on the Demand for Advice within Retirement Plans

By Jonathan Reuter & David P. Richardson. We study demand for advice within defined contribution retirement plans offered by 23 institutions where TIAA is sole recordkeeper. Advice seeking increases with age, account balance, annual contribution level, web access, and changes in marital status. More provocatively, participants who invest solely through target date funds—the dominant default investment option—are significantly less likely to seek any form of advice throughout the age distribution, raising the possibility that reliance upon defaults crowds out advice...

July 22, 2022
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18Jul

US. Managers still looking for opportunities with rising inflation, market fluctuations

Money managers are largely in agreement that inflation, volatility and further market drops are all likely to be in the cards for investors the rest of the year. But that doesn't mean there are not investment opportunities to be found. Equity markets could take a further hit, giving investors the opportunity to find some bargains, but bond strategies could be due for a reversal. Christopher C. Newman, head of Americas division for T. Rowe Price Group, said in an interview that...

July 18, 2022
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18Jul

Nigeria. Pension fund investment in equities up 7.4% to N1.1trn due to stock market boom

The rising fortunes of investors in the nation’s stock market, as reflected in the 22.4 per cent year-to-date growth in total value of equities on the Nigerian Exchange Limited, NGX, has triggered a 7.4 per cent increase in the value of pension funds investment in equities to N1.1 trillion. This is in sharp contrast to 0.4 per cent growth in pension funds investment in federal government bonds recorded during the same period, which is the preferred and less risky investment...

July 18, 2022
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15Jul

The market meltdown threatening pensions for millions in the U.S.

American public pension funds are facing serious challenges that threaten the retirement plans for millions of US state and local government employees. Pension plans remained severely underfunded during the 11-year bull market that followed the Great Recession. The plunge toward insolvency and high-return markets led fund managers to take on risky bets in hope of staying afloat. Now, the recent selloff has left funds struggling to keep up with their future obligations. The 100 largest public pension funds in the United...

July 15, 2022
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14Jul

US. Biggest Investor Worries Are Inflation and Recession Risk

Top retirement income concerns for investors are inflation and recession anxiety, a new report reveals. The Alliance for Lifetime Income and CANNEX research from the “Protected Retirement Income and Planning Study” found that four out of five U.S. workers age 45 to 75 cited concerns that high inflation will reduce their spending power in retirement (81%) and that a recession will drive the economy downward and may reduce the amount of retirement income they can expect (79%). Retirement income anxiety is...

July 14, 2022
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