January 2025

Advocates claim high-risk gas assets are liabilities for pensions

Adam Scott believes pension fund managers who invest in gas are in trouble. Particularly, those who think high-risk gas assets can be saved by hydrogen. This might come as a shock because pension fund managers have long seen gas infrastructure as a low-risk investment. Historically, regulated gas assets offered stable returns and seemed to be a safer, lower-carbon option compared to other fossil fuels. But Scott, executive director at Shift Action for Pension Wealth and Planet Health, says these...

UK pension schemes in “robust position” to deal with market movements

Pension schemes in the UK are in a "robust position" to deal with market fluctuations, an industry body has said. The pound fell to a fresh 14-month low on Monday, while UK government bonds, also known as gilts, continued to see 10-year yields hit highs not seen since 2008. Yields are a key indicator of market confidence, moving inversely to bond prices. There has been speculation over potential impacts for pensions from the gilt market rout, as well as mortgages, with comparisons...

Europe’s top pension fund divests $585 million stake in Tesla

Europe's largest pension fund, Stichting Pensioenfonds ABP, has sold off its entire stake in Tesla (NASDAQ:TSLA) Inc., valued at $585 million, during the third quarter. The decision was influenced by several factors, including a disagreement over CEO Elon Musk's compensation package. Stichting Pensioenfonds ABP spokesperson stated on Sunday that the fund had issues with Musk's pay package. The decision to divest was also influenced by considerations of costs, returns, and responsible investment requirements. The Dutch newspaper Het Financieele Dagblad originally reported...

Japan’s GPIF-commissioned report finds gaps in infrastructure assets data

Fund managers’ current data reporting practices for infrastructure assets do not provide Japan’s Government Pension Investment Fund and other asset owners with adequate information to measure fair value and manage risks in their portfolios, a report commissioned by the pension fund found. Tokyo-based GPIF had ¥252.86 trillion ($1.61 trillion) in assets as of Sept. 30. Money managers that follow ethical guidance under the Global Investment Performance Standards are expected to provide “a full and fair disclosure of their performance,” but research...

Pension Income Contributed $1.5T to US Economic Output in 2022

More than $680 billion in pension benefits were paid to 26.3 million beneficiaries in 2022, according to new research from the National Institute on Retirement Security’s “Pensionomics 2025” report, which quantified the economic impact of defined benefit pension expenditures. “Virtually every state and local economy across the country benefits from the spending of pension checks,” wrote the report’s authors, NRIS Executive Director Dan Doonan and Ilana Boivie, an assistant director of strategic resources for the International Association of Machinists and Aerospace Workers....

December 2024

2024 is a record year for ETFs in Latin America, especially among pension funds

According to a report by ETFGI, this year will be historic for the global ETF sector. By the end of August, the industry reached a new all-time high of $13.99 billion in assets under management, surpassing the previous record of $13.61 billion. In the emerging markets of Latin America, the trend is similar, driven by increased liquidity in the region. This is particularly evident among the largest pension funds, whose managers have long used ETFs as one of their preferred...

US Pension Plans Set to Increase Contributions in 2025

Approximately 58% of pension funds in the U.S.—including public, corporate and multi-employer plans—reported that their funded status increased in 2024, according to a survey of pension fund professionals commissioned by Ortec Finance. Approximately 30% of plans reported that their funding status is unchanged, while 12% said their funding status decreased this year. While funded status is generally increasing, more than two-thirds (68%) of respondents said they will or are likely to increase contributions this year. According to Ortec Finance, of the...

Canada. Navigating Change: Developments in the Pensions and Benefits Sector

Recent regulatory changes, case law precedents and best practices are reshaping the pensions and benefits sector. These changes emphasize the need for robust compliance, governance and strategic planning to effectively navigate emerging risks and obligations. Below are five key developments that plan administrators and stakeholders should keep in mind. Regulatory Updates. The federal government has introduced proposed amendments that would require OSFI to publish investment information with respect to certain federally regulated pension plans. Provincially, Ontario filed various regulations to implement...

Aon UK DC Pension Tracker – Q3 2024: State Pension increase drives rise in savers’ expected incomes

By Aon Over Q2 as a whole, the Aon UK DC Tracker rose which suggests the expected future living standard in retirement provided by defined contribution (DC) savings was higher than at the end of the previous quarter. All members benefited from the April 2024 increase in the state pension, which increased from £10,600 to £11,500 per year. The oldest saver saw the largest proportionate increase from this change as the state pension makes up a larger proportion of their expected retirement income. Positive returns...

Pulse Report. Afire International Investor Survey

By Afire International Investor Survey   As an extension of housing concerns in the US, trends in the insurance industry can sometimes serve as portents, or as evidence. At the junction between the global, environmental effects of climate change and the frequently counterintuitive logic of homeowners, renters, and consumers in the US, the question of insurance is best understood as an analogy. For example, earlier in 2024, AFIRE asked investors if they agreed or disagreed with the sentiment that the industry...