April 2022
29Apr

South Africa. How financially sound is the Government Employees’ Pension Fund?

The country’s biggest and most important pension fund is healthy, but there are some reasons to be concerned. The extraordinary rise in the value of the JSE between March 2020 and March 2021 stemmed three years of declining values within the Government Employees’ Pension Fund (GEPF) and has placed it in a sound financial position as far as short-term commitments are concerned. However, it is unlikely that investors will see another year where the JSE rises by 55%, which makes the...

April 29, 2022
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29Apr

UK. Pension schemes remain uninsured for cyber risks

Nearly half of UK pension schemes still do not have insurance against cyber attacks, and a similar proportion are lacking the specialist skills needed to deal with the threat. That is according to a new report from risk advisory firm Crowe, which surveyed pension scheme trustees on the challenges facing them as fraud and cybercrime levels rise. Worryingly, 43% of respondents said that they had not tested the strength of their scheme's IT systems, processes and procedures for cybercrime protection, while...

April 29, 2022
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28Apr

Retirement Savings Policy: Past, Present, and Future (The Alexandra Lajoux Corporate Governance)

By Michael P. P. Barry Retirement Savings Policy reviews the basic policies that govern retirement savings plans, and their real world application, focusing on the key issues of finance, taxation, fiduciary conduct, and employee choice. The discussion is framed around the three fundamental challenges confronting employers and employees today – the pension legacy, the 401(k) revolution, and the pressure, from policymakers, regulators, opinion leaders, and individuals, for changes that will put retirement security within reach of all Americans. With more...

April 28, 2022
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28Apr

Q1 Was a Bad Quarter for Pension Investors, Says Willis Towers Watson Report

Pensions around the world had a rough first quarter, according to a new Willis Towers Watson report. The report lists the average returns and liability increases of Brazil, Canada, the Eurozone, Japan, Switzerland, the U.K., and the U.S. U.K. pensions took the biggest hit in Q1, with an average negative investment return of 9.9%. Discount rate benchmarks increased this quarter in all regions. Brazil has the highest average discount rate of 9.87%, followed by the U.S. and Canada with 3.93%...

April 28, 2022
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27Apr

Canada. IMCO returns 9.6% in 2021, outperforming its benchmark

Investment Management Corp. of Ontario, Toronto, delivered a weighted average net return of its clients' portfolios of 9.6% for the year ended Dec. 31, vs. a consolidated benchmark return of 8.5%. IMCO's assets under management climbed to C$79 billion ($61.8 billion) at the end of 2021, up 7.8% from a year earlier, the firm said in a news release Monday. By asset class, private equity performed the best in 2021, returning a net 19.2% (above the 16.9% performance by its benchmark);...

April 27, 2022
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26Apr

UK. Two thirds of investors prioritise returns over ESG

Two thirds of UK retail investors do not mind if their investments are sustainable but are instead focused on the returns they bring in. Some 66 per cent of the 1,000 investors surveyed by Charles Schwab UK said they are purely focussed on maximising returns. Just under half (44 per cent) of respondents said they regularly consider environmental, social and governance factors when making a new investment. This drops to 28 per cent among the ‘Boomer’ generation (aged between 57 and 75),...

April 26, 2022
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14Apr

Principal Financial poised to take stake in Chinese pension manager

Principal Financial Group is poised to become only the third foreign firm to take a stake in a Chinese pension management firm on the mainland. A "change of shareholders" announcement on the website of CCB Pension Management Co. Ltd., a subsidiary of Beijing-based China Construction Bank, said Wednesday that subject to approval by the China Banking and Insurance Regulatory Commission, Principal will acquire a 17.65% stake in CCB Pension Management. The announcement said China Construction Bank will transfer 15 percentage points...

April 14, 2022
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11Apr

The Danish Pension System: Design, Performance, and Challenges

By Andersen, Hougaard Jensen & Rangvid The need for pension reform is widely discussed against the backdrop of falling fertility rates and rising longevity. These developments challenge pension systems which in many countries already encounter problems with pension adequacy and financial sustainability. In the debate, reference is often made to Denmark as a model for pension system reform. This book offers the first coherent and in-depth description and analysis of the Danish pension system; its structure and performance. As is well-known to...

April 11, 2022
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06Apr

How climate investors are getting ready for the carbon removal boom

The world is hurtling towards irreversible and catastrophic warming. The goals of the Paris climate accord are fast slipping out of reach. At least we know what to do. In the face of the gathering climate threat, the latest Intergovernmental Panel on Climate Change report strikes a decidedly ‘can-do’ attitude. Global greenhouse gas emissions must peak by 2025 as fossil fuels are rapidly scaled down. And carbon removal technologies, as well as natural solutions, will be necessary to make up for hard-to-abate...

April 6, 2022
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04Apr

UK. Majority of young savers adverse to risk in their pensions

Just over a quarter (26 per cent) of savers aged 18-30 feel they can afford to take on some risk with their pensions, even though they are many years away from retirement, new analysis from PensionBee has revealed. The survey, which included responses from over 500 British savers, discovered that only 7 per cent of young savers reported that they were currently invested in a high-risk pension scheme, despite having the longest time horizon to recoup any losses. PensionBee also found...

April 4, 2022
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