March 2024
05Mar

UK. Updated: Risk of ‘unintended consequences’ from DC pension reforms

Plans to force defined contribution (DC) schemes to publicly disclose their level of investment in the UK and improve the performance of poorly performing schemes could risk having “unintended consequences” – causing plans to become more risk averse and potentially “compromising” trustee fiduciary duties. On Saturday (2 March), chancellor Jeremy Hunt announced proposals to require DC funds to disclose their levels of investment in British businesses, as well as their costs and net investment returns. He said they would also need...

March 5, 2024
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05Mar

US. Pension Funds Are Tapping Affordable Housing for High Returns — Not the Social Benefits

While affordable multi-family housing has become a key part of some pension funds’ real estate allocations, most of these funds are selecting investments that don’t have long term affordability in mind. This is according to new research from the Federal Reserve Bank of New York. The FRBNY has embarked on a research project to explore investments by institutions, specifically state pension plans, in multifamily housing. This is the second in a series of papers on the subject. The first, “Alternative...

March 5, 2024
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04Mar

U.K. pension funds to disclose domestic investment as London stock market falters

Chancellor Jeremy Hunt on Saturday said U.K. pensions will have to disclose how much they have invested domestically, in a move meant to boost the faltering U.K. stock market. Under the plan, defined contribution funds by 2027 will have to disclose their level of investment in British businesses, as well as their costs and net investment returns. Hunt said the proposal will first be reviewed by the Financial Conduct Authority. Pension funds also will have to disclose how they performed against...

March 4, 2024
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04Mar

UK. Make My Money Matter publish report analysing leading pension providers’ action on climate change

A recent report by Make My Money Matter sheds light on the relationship between finance and environmental stewardship, revealing both the potential and the shortcomings of our pension investments. The UK Pensions: Climate Action Report highlights the stark reality that while many of us contribute to pensions, few of us truly understand where our money goes and the consequences of it. Often, out of the £3 trillion that exists in UK pensions, this money is financing industries that perpetuate environmental...

March 4, 2024
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01Mar

Pension funds’ role in Brazil’s farmland controversy

Global pension funds are implicated in the deforestation of Brazil's Cerrado, impacting local communities and climate goals. In short: Armed men, allegedly hired by land claimants, have forcibly displaced local communities in Brazil's Cerrado, destroying homes and livelihoods. Major global pension funds, including TIAA, have invested billions in Brazilian farmland, contributing to deforestation and land conflicts. The destruction of the Cerrado, a key carbon sink and biodiversity hotspot, poses significant challenges to Brazil's climate commitments and local ecosystems. Key quote: “There’s a...

March 1, 2024
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01Mar

US. New York Fed Case Study Finds Pension Funds Invested More Frequently in Preserving Existing Affordable Housing than New Development

The Federal Reserve Bank of New York today released a case study focused on pension fund investments in affordable apartments. The case study, “Alternative Investments in Community Development: A Case Study of Pension Fund Investments in Multifamily Affordable Housing,” is based on a survey of a non-representative sample of seven pension funds that made commitments totaling over $2.7 billion for investments in affordable apartments during a five and a half-year period ending June 2023. The case study also found...

March 1, 2024
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February 2024
29Feb

UK. Pioneering Responsible Investment: How Pension Schemes Lead with ESG Initiatives

In an era where environmental, social, and governance (ESG) factors are becoming paramount in investment decisions, pension schemes and asset managers are taking significant strides towards responsible investing. Notable entities like Scottish Widows, Railpen, Nest, AXA Investment Managers, Franklin Templeton, and Legal & General Investment Management (LGIM) are setting benchmarks by emphasizing initiatives that not only foster financial returns but also contribute positively to society and the environment. Championing Social Factors in Investments Scottish Widows has made headlines by focusing on...

February 29, 2024
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28Feb

Govt urged to consider new measures to attract pension investment in the UK

The Pensions and Lifetime Savings Association (PLSA) and the Association of British Insurers (ABI) have called on the government to consider taking further action in four key areas to attract greater pension investment in UK growth. The associations stated that whilst progress on increasing pension investment in UK growth had been good, more needs to be done, identifying four key measures that could help improve growth. The government was urged to consider ensuring better adequacy in defined contribution (DC) pensions and...

February 28, 2024
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28Feb

US. NYC Pensions Are Sued for Shedding Fossil Fuels

Monica Weiss attended her first fossil-fuel divestment protest on a frigid February day in 2015. She joined college students, financial experts, faith leaders, and then-New York City Public Advocate Letitia James in front of the New York Stock Exchange to demand that the city’s five public pension funds factor the financial risks of climate change into their investment decisions. Over the course of her two-decade career teaching first and third grade in New York City public schools, Weiss infused nature...

February 28, 2024
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27Feb

Uganda Parliament Pensions Scheme to Reduce Equity Investments in Kenya

By Kenyan WallStreet   Uganda’s Parliamentary Pensions Scheme (PPS) is considering reducing its investments in Kenya due to macroeconomic challenges. The scheme’s total equity assets stand at UShs. 24 billion, out of which two percent is in Kenya. In its most recent financials, the scheme reported a gross investment income UShs. 55 billion and total assets of 425 billion. The growth in total assets marked a significant growth from UShs. 349 billion in 2021/2022 to Shs. 425billion in 2022/2023. “We…propose to reduce...

February 27, 2024
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