June 2023
07Jun

U.K. pension funds slow to invest in biodiversity – report

U.K. pension funds are increasingly aware of biodiversity risks to their portfolios, but not many are investing in natural solutions, according to research from Pensions for Purpose released Monday. Commissioned by alternatives asset manager Gresham House, Pensions for Purpose asked 22 asset owners and investment consultants how much they incorporate biodiversity and natural capital in investment decisions. Participants included the £25 billion ($31 billion) National Employment Savings Trust, London, £35 billion Brunel Pension Partnership, Bristol, £15 billion London CIV, £35...

June 7, 2023
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06Jun

Why saving for a pension has become more risky

How much money are you going to have to live on in retirement? Perhaps, just like one in five Britons, you do not know. This is not a surprise since there are so many shifting factors, or risks, to consider when thinking about retirement finances. You need to think about how much you’ll earn during your life, to what your employer will decide to contribute towards your a pension, and how much tax you will have to pay. And then, even...

June 6, 2023
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05Jun

How the FCA’s new Consumer Duty impacts UK pension scheme buy-outs

Pension scheme trustees considering a buy-out are likely to welcome this, because the Duty will require the insurer to use its influence to deliver good outcomes for the members in relation to the policies. This will further strengthen the regulatory regime that applies to insurers and the protection it offers to bought out members. How the Consumer Duty will apply to pension schemes In July 2022, the FCA published its rules for a new Consumer Duty that will apply to FCA-regulated...

June 5, 2023
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02Jun

Aegon UK to invest £500m in climate solutions by 2026 in net zero push

Aegon UK has launched a climate action roadmap geared towards achieving net zero emissions by 2050, warning the time for "bold climate action" is now. Announced yesterday, the insurance, pensions and asset management firm's net zero target covers its core business as well as financed emissions for its workplace default pension funds. Aegon UK also promised to take "concrete short-term steps" to slash its emissions in half by 2030, which it said would "support making customers' investments more resilient to shocks". Crucially,...

June 2, 2023
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May 2023
31May

UK. Derisking well funded DB schemes may be an opportunity missed

Funding is reaching record levels and DB schemes are now in a position of strength. Current regulations compel schemes to target ultra low investment returns, but taking risk and therefore return out of DB pension investments may be going too far, representing a ‘missed opportunity’ to better invest £1.5 trillion of UK DB pension scheme assets. Steve Hodder, partner at LCP, said: “For 20-plus years, regulatory focus has been on ‘slowing down’ DB schemes through reducing investment risk. This was...

May 31, 2023
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30May

Industry Voice: Improving value in workplace DC pension schemes

A key component in value is offering properly diversified investments. If you compare the Local Government Pension Scheme (LGPS) and workplace DC schemes, both are funded UK occupational pension schemes with high numbers of active members but there is noticeable difference between their invested assets. Look at the range of funds offered by an LGPS pool such as Border to Coast and you will find both passive and active equity funds, corporate credit as well as a range of alternatives such...

May 30, 2023
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29May

The problem with UK government pressure on pension funds to diversify

UK politicians are urging the country’s pension funds to invest less in UK government bonds (Gilts) and more in riskier and complex assets including young UK companies, and infrastructure. Railpen’s John Greaves, head of investment strategy and research explains the various problems with the plan. The asset mix of closed defined benefit (DB) pension funds in the UK has been moving more into low risk assets like Gilts in recent decades as these schemes have matured. The sudden rise in government...

May 29, 2023
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29May

UK. Create pension superfunds to save the economy, says Tony Blair Institute

Thousands of UK retirement schemes should be merged into just half a dozen £400bn superfunds to turbocharge investment in businesses and infrastructure, Sir Tony Blair’s think tank has said. In a paper today, the Tony Blair Institute backs proposals circulating in Whitehall to turn the Pension Protection Fund (PPF) – a lifeboat scheme for the pension funds of companies which go bust – into the first of a new generation of “global scale” schemes that are better-equipped to invest in...

May 29, 2023
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26May

UK. Govt urged to announce new pensions dashboards timeline

The government and pensions authorities have been urged to announce a new pensions dashboards timeline after the mandatory deadline was extended. In March, the pensions minister Laura Trott extended the 31 August 2023 deadline due to technicalities. Trott said additional time was needed to deliver the technical solution to enable the connection of pension providers and schemes. However, pensions experts want to see a new timeline announced sooner to get firms participating in the dashboards programme better prepared. “It’s imperative that the regulator...

May 26, 2023
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25May

Changing pensions regulations will not boost UK business investment Expert

Often in politics, a bad idea turns up when its time has finally come. The current contender in the UK is the belief that a few tweaks to pension rules will flood dynamic companies with much-needed funds, save the troubled stock market, improve returns for future pensioners and resolve the longstanding weakness in business investment. Chancellor Jeremy Hunt said in his March Budget that his plans, to be announced in the autumn, will “unlock productive investment from defined contribution pension...

May 25, 2023
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