October 2020

23Oct

US. The DOL’s ESG Proposal and DB Plans

There´s a lot of money in corporate defined benefit (DB) plans, and it can make a difference how those assets are invested. Cooper Abbott, president and chairman of Carillon Tower Advisers, notes that the Department of Labor (DOL) oversees employee benefit plans that represent approximately $10 trillion in combined assets under the Employee Retirement Income Security Act (ERISA). Of this total, about $8 trillion is in mutual and other funds, and about $2 trillion is in directly...

October 23, 2020
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21Oct

Mexico. López Obrador faces pension funds’ ire with commissions cut plan

Plans by Mexican President Andrés Manuel López Obrador to force fund managers to cut their fees as part of a pension reform have prompted threats of litigation. Read also Chile’s pension funds join global gold ETP rush Private pension funds would have to cut their commissions almost in half to 0.54 percent, from 0.92 percent, according to a bill sent to Congress in September, which is expected to be approved in both chambers in the next weeks. Read also COVID-19...

October 21, 2020
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21Oct

Pandemic puts pressure on global pensions

The combination of low interest rates, a pandemic-ravaged global economy and reduced investment returns are straining pension systems, according to an annual survey. Covid-19 has also exacerbated gender inequality in pensions, the Mercer CFA Institute Global Pension Index says. Women already retired with less money than men, and the pandemic’s effect on the hospitality and food services sectors, where women are overrepresented, will add to the gap. Canada’s pension systems held at ninth overall in the 2020 study with...

October 21, 2020
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21Oct

UAE. Abu Dhabi Pension Fund and ADQ to Invest $2.1 Billion in Gas Pipelines

The Abu Dhabi Pension Fund (ADPF) and holding company ADQ have made a $2.1 billion investment in the state’s gas pipeline assets. The state pension fund and holding company will take a one-fifth stake in the gas pipeline assets owned by the Abu Dhabi National Oil Company (ADNOC), which oversees 38 pipelines spanning 610 miles, the state-owned oil company ADNOC said last week. “The addition of these high-caliber UAE investors sets a new benchmark for leading global and...

October 21, 2020
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21Oct

Canada. Quebec Pension Launches Fund to Boost Diversity in Smaller Firms

Caisse de Depot et Placement du Quebec is launching a C$250 million ($190 million) fund to invest in small and medium-sized businesses in Canada that have diverse executives and owners. To be eligible, companies must promise that at least 25% of their boards, management teams and shareholders will be comprised of people of diverse backgrounds -- including women, visible minorities and indigenous people -- in the five years following the investment, Caisse said in a statement. “It has been...

October 21, 2020
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20Oct

These Are the World’s Best (and Worst) Pension Systems in 2020

The Netherlands and Denmark have cemented their positions as having the best pension systems in the world, even as other countries falter during the Covid-19 pandemic, according to an annual global survey. Read also Pandemic puts pressure on global pensions The countries again took the top two slots in the Mercer CFA Institute Global Pension Index published Tuesday, drawing praise for holding their nerve and not allowing citizens to drain their accounts during the crisis. Read also Asia managers set...

October 20, 2020
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20Oct

Asia managers set strategies for expected U.S. election chaos

Money managers in Asia are deploying a range of traditional and unconventional strategies to cushion any losses as they brace for turbulence in the lead-up and aftermath of the U.S. presidential election. Chinese equities feature high in some recommendations on expectations the vote will have a limited impact on Asian assets, while derivatives that protect against a market slide are also listed among the strategies. Several investors suggest more conventional hedges such as the yen and gold as well...

October 20, 2020
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19Oct

Canada. CPPIB urged to plan now for net-zero reality

Despite Canada's economic reliance on its oil and gas industry, finance experts and sustainability advocates are urging large public investors like the C$434.4 billion ($326.3 billion) Canada Pension Plan Investment Board to implement long-term investment strategies that better align with the federal government's pledge to achieve net-zero carbon emissions by 2050. Multiple sources agree that Toronto-based CPPIB, Canada's largest pension fund, should support the country's transition to a low-carbon economy, enhance its disclosure of fossil-fuel investments and set a...

October 19, 2020
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16Oct

The Importance of Extending Diversity to the Retirement Plan Committee

This year, in particular, with the protests that sprung up across the country following the death of George Floyd, has shown many companies the importance of having a truly diverse workforce. And that principle should extend to the retirement plan committee as well as the workforce, experts say. While having a diverse committee is ideal, the first thing plan sponsors should do is select experts to sit on the committee, says Timothy Irvin, a director and corporate markets practice...

October 16, 2020
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07Oct

UK. Pension bill amendment to give trustees power to halt transfers

Trustees of pensions schemes could soon be getting more powers to halt suspicious pension transfers, according to the Pension Scams Industry Group. Read also More sponsors in U.K. embrace outsourcing The group said an amendment restricting the statutory right to a transfer is to be tabled to the pension schemes bill by two MPs, in an attempt to combat pension scams. Read also Ireland. State’s pension scheme for public servants ‘more sustainable’ It had proposed the amendment in its submission to...

October 7, 2020
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