February 2022

How will the EU’s SFDR sustainability rules work?

Europe’s action plan on sustainable finance will accelerate the mobilisation of green finance and reinforce EU leadership in this area by being an example for regulators across the world that are looking at a standardised approach. Despite the challenges, the goal is to build a greener, more sustainable future, but it cannot be done without the weight of financial market participants being fully committed. Today, country and corporate carbon reduction plans are still far short of the 1.5C target under the...

Zimbabwe’s FML faces investigation over asset separation law defiance

FML, the second-largest life assurance company in Zimbabwe by market share that also provides retirement, medical insurance, micro-insurance and other long-term financial security products, has also effectively defied the law on separation of insurance and pension businesses due to internal squabbles over the issue, which has led to some executives being removed. Zimbabwe’s leading financial services conglomerate, CBZ Holdings, is in the process of taking over FMHL to build a business behemoth in the local and regional markets. In a letter...

¡Sin esperanza! Mexicanos creen poco probable vivir de sus ahorros en el retiro

El retiro, o jubilación como también se hacía llamar, es una de las etapas que actualmente gozan pocos adultos mayores, mientras que para los mexicanos que apenas van camino a esa etapa les es preocupante pensar en su retiro, pues consideran que es poco probable vivir sólo de sus ahorros y creen continuarán trabajando. Leer también México. Los retiros por desempleo en las Afores pierden fuerza en enero Recientemente, el Centro de Opinión Pública de la Universidad del Valle de México...

Estos son los nuevos proyectos que buscan liberar más dinero del fondo de pensiones en Perú

¿Se vienen más desembolsos de AFP? Con el objetivo de aliviar la economía familiar, afectada por la pandemia que se inició en el 2020 y la crisis económica, se han presentado un grupo de proyectos legislativos que plantean el retiro de los aportes de las Administradoras de Fondos de Pensiones (AFP). ¿De qué tratan? La Comisión de Economía está a cargo de evaluar el conjunto de las propuestas para determinar cuál es la más adecuada y su eventual aprobación. Hay...

US. Pension plans increasing their focus on allocating to diverse asset managers

U.S. pension funds are allocating more to diverse money managers and taking more steps to measure how their assets are allocated and articulate formal policies on their processes. This is the second year Pensions & Investments has surveyed the top 200 U.S. retirement plans regarding defined benefit plan assets managed by money management firms owned by women, minorities, people with disabilities and veterans. As of Sept. 30, respondents said a total $120.7 billion was managed by WMDV-owned managers, up from $68.4...

UK. Lecturers strike again over USS benefit cuts

On the go: Staff at 44 institutions are to walk out once again over planned benefit cuts to the Universities Superannuation Scheme. The strike is the latest episode in a long dispute between the USS trustee, employer group Universities UK, and the University and College Union over the resolution of the scheme’s controversial 2020 valuation. The trustee has until the end of the month to submit a schedule of contributions to regulators. Absent a deal, the conclusions reached by the 2020...

French Prime Minister Castex: pensions to be adjusted to factor in inflation

French Prime Minister Jean Castex told France 2 TV on Friday that pensions would be adjusted to factor in inflation. French inflation fell less than expected in January as it eased back from a 13-year high on lower prices for manufactured goods due to winter sales. The INSEE statistics agency said consumer prices rose 0.1% in January, giving a 12-month inflation rate of 3.3%, down from 3.4% in December.   Read more @Financial Post 236 views

Ghana. GH¢10bn private pensions funds available for investment in GSE securities – Deputy MD

Abena Amoah, Deputy Managing Director (MD) of Ghana Stock Exchange (GSE), has said GH¢10 billion private pensions fund is available for investments in GSE listed equity and debt securities. She, therefore, called on specified entities, including State-Owned Enterprises (SOEs), to take advantage of such financing and investment opportunities to enhance their operations and make them economically viable. Ms Amoah further urged specified entities to assess and raise Patient Long-term Capital by becoming issuers of equity or debt securities as a support...

US. A monumental year pushes assets up 17%

The 1,000 largest U.S. retirement plans had a banner year, propelled in large part by strong returns in public and private equity and other alternative investment strategies, as well as from higher contributions to defined benefit and defined contribution plans. In the year ended Sept. 30, aggregate assets of the 1,000 largest U.S. retirement funds rose 16.9% to $14.13 trillion, a big improvement from the previous year when assets managed to rise 6.6% amid the first year of the COVID-19...

Low Demand for Reverse Mortgages in Canada: Price, Knowledge or Preferences?

By Admin SSRN au/at CIRANO, Ismael Choiniere Crevecoeur & Pierre-Carl Michaud High borrowing costs, limited knowledge and preferences could explain why few Canadians purchase reverse mortgages, an asset decumulation product that is appealing to those who are house-rich but cash-poor. In this paper, we first use an asset pricing model to calculate the actuarial fair costs of guarantees built into reverse mortgage products in Canada and compare those estimates to prevailing interest rates in the market for these products. We...