August 2023
22Aug

ESG investing by pension funds in Africa is not a demand problem

Africa’s value tomorrow will be, in large part, determined by what is preserved today. The investment world is locked in a raging debate around “values vs value” in financial returns consideration. Opponents of ESG investing approaches believe that it is primarily the role of governments to fight climate change. Their responsibility, they contend, is to maximize shareholder returns, climate concerns notwithstanding. After all, government taxes them. The missing link in this argument is optimization. Portfolio optimization, the objective of...

August 22, 2023
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21Aug

Australia’s $1.5 trln pension sector invests in debt again

Australia's A$2.4 trillion ($1.54 trillion) pension sector grew its investments in local and foreign debt by more than A$20 billion over the past year as higher yields burnished an asset class overlooked in a country where equities traditionally rule. The two largest pension funds grew fixed income investments in their primary vehicles, holding bulk of the pensions, in the last financial year. For the A$300 billion AustralianSuper, the country's largest fund, its fixed income allocation hit the highest level since...

August 21, 2023
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18Aug

US. NYC Comptroller Lander & Pension Fund Trustees Warn Entertainment Giants that They Risk Losing Investor Confidence over Prolonged Strikes

The trustees of the five New York City pension funds, led by New York City Comptroller Brad Lander, sent letters to the Chief Executive Officers of Disney, Paramount, and Chairman and Chief Executive Officer of Comcast, urging them to address the ongoing strikes by the Writers Guild of America (WGA) and Screen Actors Guild–American Federation of Television and Radio Artists (SAG-AFTRA) today. The ongoing WGA and SAG-AFTRA strikes have paralyzed major television and film productions in New York City and across the...

August 18, 2023
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18Aug

How to protect your retirement assets from inflation: Morningstar

Inflation is a buzzkill for personal finances, lowering the value of your savings and raising your spending levels. That’s especially an issue for retirees, who often have limited resources and may need them to last a long time. While inflation peaked in June 2022 at 9.1%, it still stood at 3.2% in July. That’s well above the Federal Reserve’s target of 2%. Christine Benz, director of retirement planning for Morningstar, has offered commentary on how to protect your retirement assets. At the portfolio...

August 18, 2023
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July 2023
24Jul

UK. Insurance and pensions investment changes are positive steps

The refresh of the Solvency II rules will make certain assets more attractive to insurers. This includes infrastructure assets in their construction phase and higher risk assets common in “greenfield” projects that typically bear high technological and development risks. The research outlines the opportunities and potential implementation challenges of broadening the matching adjustment (MA) asset eligibility criteria. Firms will need to focus on key aspects of risk management to protect policyholder security, such as maintenance of the matching between asset...

July 24, 2023
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21Jul

U.S. Public Pensions Are Building for The Long-Term. How Pension Plans Are Reacting After A Year Of Shocks.

By Ortec Finance U.S. public sector pension plans are planning ahead for the potential impact of further economic and market shocks, a new report from Ortec Finance, the leading global provider of risk and return management solutions for pension funds and other institutions, shows. Its report based on a study* of U.S. public sector pension plan managers at U.S. public sector pension plans who collectively help manage over $1.315 trillion, found 90% plan to increase spending on scenario modeling and stress...

July 21, 2023
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21Jul

Kenya: Local Infrastructure Projects Seek Over Sh700bn Financing From Pension Industry

The Kenya Pension Funds Investment Consortium (KEPFIC) has received infrastructure and alternative investment proposals worth over Sh700 billion ($5.5 billion) from project sponsors and fund managers looking to raise capital from the local retirement benefits schemes. The proposals come as local pension schemes expand their search for suitable investments to provide diversification and higher returns for pensioners. The announcement was made during the opening of the two-day KEPFIC Annual Investment Conference in Nairobi today, where the shortlisted investment opportunities were presented...

July 21, 2023
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20Jul

US. The debate over ESG and retirement plans continues

Part of the ongoing congressional debate over ESG centers on whether these factors should be considered as part of pension and retirement funds. Those of you expecting a resolution should prepare to exercise some patience. One of the most active representatives on the anti-ESG side of the debate is Rep. Andy Barr (R-Ky.), who introduced legislation targeting the use of ESG factors in retirement plan investments June 21. Barr has proposed changes to the Employee Retirement Income Security Act, which...

July 20, 2023
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20Jul

US Public Pensions Invest Record $1.6 Trillion in Alternative Assets

US public pensions have boosted their exposure to private equity to $622 billion, the highest in at least two decades, as part of a push for higher investment returns, according to a new report by the Equable Institute. Private equity makes up 13% of the state and local retirement plans’ investments as of 2022, compared to 11% the prior year, according to the nonprofit research group, which cited the latest data available. Overall, alternative assets — like private equity, hedge...

July 20, 2023
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19Jul

U.S. public pension funds unlikely to hit investment targets this year – report

State and municipal pension funds will likely miss their investment targets this year and will probably not see meaningful improvements in their unfunded liabilities or funding ratios, according to Equable Institute's "State of Pensions 2023" report released on Tuesday. Unfunded liabilities climbed to $1.57 trillion in 2022, bringing the national aggregate funding ratio to 75.4% due to negative investment returns, Equable said in a release issued in conjunction with the report. Equable now projects that the aggregate funding ratio for U.S....

July 19, 2023
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