August 2020

24Aug

UK. Why we’re largely a nation of ‘no clues’ on pensions

Alarm bells are ringing again after further dark news about pension saving in the UK. A lack of planning, a lack of knowledge, and just not getting around to thinking about pensions means that even those who are saving into a workplace or personal pension are still doing so passively. We save according to the legal minimums required, rather than asking ourselves the crucial question: how much will I need, and how much must I save right now,...

August 24, 2020
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20Aug

Pension Giant Says Radical Post-Covid Changes to Hit Investments

Canada’s largest pension fund says some of the “radical changes” in consumer behaviors enforced during the pandemic lockdown are here to stay. The Canada Pension Plan Investment Board’s thought leadership lab sees permanent changes to consumer behavior as a result of the global pandemic. The era after Covid-19 will be defined by wider adoption of e-commerce among older consumers, as well as by long-term impacts on health-care and privacy policy, all of which will impact investment portfolios, it says....

August 20, 2020
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19Aug

South Africa. Enoch Godongwana: Prescribed assets won’t be used to bailout struggling SOEs

RYK VAN NIEKERK: The contentious issue of prescribed assets was a prominent topic of discussion during an ANC webinar on Monday night regarding the party’s economic policy. During the webinar Enoch Godongwana, the head of the ANC’S economic transformation subcommittee, strongly denied that proposed changes to Regulation 28 are aimed to force pension funds to bail out struggling state-owned enterprises, or to fund a state-owned bank. Enoch Godongwana is on the line. Enoch, thank you so much for joining...

August 19, 2020
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19Aug

Kenya. Urgent: Protect pension funds

How safe is your pension? I think Kenyans who contribute money to individual pension schemes are badly exposed. Last week, a whistle-blower, who is an employee of a leading pensions administrator, visited my office, where he proceeded to dump a heap of documents including multi-year audited accounts, balances of member contributions and statements of individual contributors. The whistle-blower’s intention was to show me how the directors of the company had devised clever schemes to steal hard-earned savings of unwitting...

August 19, 2020
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18Aug

World’s largest sovereign wealth fund reports $21 billion loss after ‘volatile’ first half of the year

Norway’s huge pension fund — the largest sovereign wealth fund in the world — reported negative returns for the first half of the year on Tuesday, citing “major fluctuations” in equity markets. Read also Canada Pension Plan Returns 5.6% in First Quarter The Government Pension Fund Global said it returned -3.4% for the first six months of 2020, equivalent to -188 billion kroner (-$21.3 billion). Read also MetLife Board Dodges Lawsuit Over $500 Million Annuity Error “There were major fluctuations in...

August 18, 2020
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18Aug

Verod takes on Nigerian pensions operator

AXA Mansard Pension is the latest in a series of Nigerian investments by Verod Capital Management. West African private equity investor Verod Capital Management has taken over Nigerian pension administrator AXA Mansard Pension, following other investments made in the country’s financial services sector by Verod in recent years. AXA Mansard Pension operates saving accounts and pension funds on behalf of private and public sector employees, with the deal subject to regulatory approval by the National Pension Commission. Formerly known...

August 18, 2020
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14Aug

US. Massive 401(k) Suit Settlement Struck

In a remarkably short period, an excessive fee suit involving proprietary funds has settled for what may be the largest monetary settlement among those cases to date. The suit—filed on Feb. 15, 2019 by plaintiff (and former McKinsey plan participant) Tushar Bhatia against McKinsey and MIO (MIO Partners, Inc., a subsidiary of McKinsey)—asserted claims for breach of fiduciary duty, prohibited transactions, and equitable restitution under ERISA. More specifically, he alleged that McKinsey adopted certain in-house funds for the...

August 14, 2020
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12Aug

Nigeria. Axa close to selling off pension fund arm

Axa Mansard, the Nigerian branch of French insurer Axa, is on the verge of finalizing the sell-off of its pension fund administrator. The company sold the 60% stake (representing nearly 2.1 billion shares) it holds in Axa Mansard Pension Ltd to Eustacia Limited, a member of investment group Verod. “This transaction marks a new step in AXA ́s broader strategy to focus on and grow our Life, Property & Casualty (P&C) and Health businesses across all its territories. The...

August 12, 2020
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10Aug

UK. Pension leaders file complaint over FCA ‘advice trap’

Pensions industry representatives have written a joint complaint to government ministers over new guidance from the Financial Conduct Authority, which they warn could see trustees deemed to be giving regulated financial advice. Read also UK. TPR responds to questions on their effectiveness on a pension scam case to WPC The Association of Consulting Actuaries, the Pensions Administration Standards Association, the Pensions Management Institute and the Society of Pension Professionals wrote to Guy Opperman, minister for pensions and financial inclusion, and...

August 10, 2020
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10Aug

Multi-Manager For DC Plans: How To Hit The Sweet Spot, Even In Volatile Markets

How a multi-manager investment approach to defined-contribution plans can help support good decisions - and potentially great investment outcomes - amid difficult times. In markets like these, the value of a smooth ride of investment returns is easy to understand. The greatest responsibility of plan sponsors is to support the achievement of great investment outcomes. For the first time in years, the cycle of investor sentiment has turned decisively toward fear. The halting of economic activity precipitated by the...

August 10, 2020
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