February 2022
14Feb

Ghana. GH¢10bn private pensions funds available for investment in GSE securities – Deputy MD

Abena Amoah, Deputy Managing Director (MD) of Ghana Stock Exchange (GSE), has said GH¢10 billion private pensions fund is available for investments in GSE listed equity and debt securities. She, therefore, called on specified entities, including State-Owned Enterprises (SOEs), to take advantage of such financing and investment opportunities to enhance their operations and make them economically viable. Ms Amoah further urged specified entities to assess and raise Patient Long-term Capital by becoming issuers of equity or debt securities as a support...

February 14, 2022
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11Feb

US. New York’s public pension fund to divest from 21 companies over transition risk

New York’s public pension fund has announced it will divest from nearly two dozen stocks involved in shale oil and gas production. The New York State Common Retirement Fund, which manages around $280 bn on behalf of more than one million individuals, says the 21 companies have ‘failed to demonstrate they are prepared for the transition to a low-carbon economy’. ‘As market forces and new policies drive the energy transition, we must align our investments with a profitable and dynamic future,’...

February 11, 2022
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11Feb

UK. Force pension funds to align with net zero goal, says Richard Curtis

Pension funds should face legal obligations to bring their investments in line with the net zero greenhouse gas emissions goal, the film-maker Richard Curtis has said. Curtis, a co-founder of the Make My Money Matter campaigning group, urged ministers to follow up the UK’s legal commitment to reach net zero emissions by 2050 by making it mandatory for pension schemes to align their portfolios with the target. He told the Guardian: “The moment has arrived. Why not invest in sustainable investments?...

February 11, 2022
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10Feb

Mexico. Regulator calls on Afores to invest in local projects

The risk aversion of Mexico’s private pension fund administrators (Afores) is impeding growth, the head of pensions watchdog Consar told a webinar. “They have lots of resources, but local projects, which could be growth boosters, are lacking,” Iván Pliego Moreno said during a webinar organized by Nuevo León’s economists college. Read also US. New York’s public pension fund to divest from 21 companies over transition risk Pliego claimed Afores only choose 'AAA' investment projects as apparently 'BBB' ones “are not that attractive...

February 10, 2022
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10Feb

Latin America lags on decarbonization financing, report says

Decarbonization efforts in Latin America are being held back by lack of policy and private sector financing, according to a report released Wednesday by Janus Henderson Investors. Read also UK. Force pension funds to align with net zero goal, says Richard Curtis The Janus Henderson Latin America Decarbonization Report found that climate bond issuance in Latin America, at $45 billion in 12 countries at the end of 2021, is relatively small compared to the size of the region and to the...

February 10, 2022
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08Feb

ESG Vs. Impact Investing–Understanding Their Different Goals

The movement of investment capital into funds that seek to effect positive change has been substantial in recent years. Environmental, social and governance (ESG) assets rose to more than $35 trillion in 2020 to account for more than one-third of total global assets under management, according to the Global Sustainable Investment Alliance. This figure is expected to rise above $50 trillion by 2025. Despite this rapid growth, there remains deep skepticism about the effectiveness of the ESG framework. Some of...

February 8, 2022
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07Feb

Danish pension fund ditches Wizz Air over labour rights

Danish pension fund AkademikerPension said on Monday it was selling its stake in budget airline Wizz Air (WIZZ.L) over alleged "human and labour rights abuses" towards its workers. The $23 billion fund was one of 14 investors that called on Wizz in December to allow employees to form and join trade unions, saying their research suggested it was discouraging the practice in breach of staff rights. AkademikerPension said on Monday that, after meeting management, it saw no sign the airline's practices...

February 7, 2022
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Pension Markets in Focus 2021
03Feb

Pension Markets in Focus 2021

By OECD Pension Markets in Focus provides detailed and comparable statistics on retirement savings around the world. This annual statistical report contributes to the effort of making data on retirement savings available, as the OECD Core Principles of Private Pension Regulation advocates for, to enable regulators and stakeholders to evaluate the design and operation of the pension system relative to its goals. These statistics can support policy discussions through international comparisons and peer learning, and are the basis of policy...

February 3, 2022
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03Feb

Do pensions have real teeth? Evidence from the state government borrowing costs

By Sumit Agarwal, Chunlin Liu, Qiyuan Peng, Qun Wu & Ting Zhang Yes, they do. State governments with risky defined benefit pension plans have higher borrowing costs, as measured by larger bond offering yield spreads. To control for the potential endogenous issue, we utilize the instruments of actuarial firms’ reputation, and direct flight between the state capital and actuarial firm headquarter. We further identify the relation between pension plan investment risks and borrowing costs using two quasi-experimental shocks: the introduction...

February 3, 2022
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03Feb

Target Date Funds and Portfolio Choice in 401(k) Plans

By Olivia S. Mitchell & Stephen P. Utkus Target date funds in corporate retirement plans grew from $5B in 2000 to $734B in 2018, partly because federal regulation sanctioned these as default investments in automatic enrollment plans. We show that adopters delegated pension investment decisions to fund managers selected by plan sponsors. Including these funds in retirement saving menus raised equity shares, boosted bond exposures, curtailed cash/company stock holdings, and reduced idiosyncratic risk. The adoption of low-cost target date funds...

February 3, 2022
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