November 2020

02Nov

The savings and domestic investment paradox in Namibia

Namibia has been praised for having one of the largest savings pools in Africa, but the question of where such funds are invested and how they are benefiting Namibians still lingers. An analysis by The Namibian shows that since 2013, the asset base of non-banking institutions has been growing by an average of N$18 billion per year. Non-banking institutions are typically your pension funds, insurance companies, medical aid funds and friendly societies. In Namibia, they are regulated by Namibia Financial...

November 2, 2020
News, Slider, , ,
Read more...

October 2020

30Oct

Equity returns fuel Q3 Canadian pension fund returns

Strong global equity markets continue to augment pension plan returns with Canadian defined benefit plans returning 3.2 percent for the third quarter, according to the Northern Trust Canada Universe. The Northern Trust Canada Universe tracks the performance of Canadian institutional investment plans that subscribe to performance measurement services as part of Northern Trust’s asset service offerings. Overall, equity markets navigated pockets of volatility, closing the quarter in positive territory, while financial markets appeared to shrug off fears perpetuated by...

October 30, 2020
News, Slider, , , ,
Read more...
29Oct

Reconsidering Risk Aversion

By Daniel J. Benjamin, Mark Alan Fontana, Miles S. Kimball Risk aversion is typically inferred from real or hypothetical choices over risky lotteries, but such “untutored” choices may reflect mistakes rather than preferences. We develop a procedure to disentangle preferences from mistakes: after eliciting untutored choices, we confront participants with their choices that are inconsistent with expected-utility axioms (broken down enough to be self-evident) and allow them to reconsider their choices. We demonstrate this procedure via a survey about...

October 29, 2020
Articles, Pension design, ,
Read more...
29Oct

Pension fund of S.Africa’s Eskom to invest $170 mln in U.S. projects

The pension fund of South Africa's indebted power utility Eskom plans to invest $170 million in private equity, infrastructure and real estate projects in the United States, the U.S. embassy in South Africa said on Wednesday. Eskom Pension and Provident Fund (EPPF) will invest $100 million in private equity managed by AlpInvest and $30 million in real estate managed by Metropolitan. The two companies are owned by U.S. private equity firm Carlyle Group. The remaining $40 million infrastructure investment will be...

October 29, 2020
News, Slider, , ,
Read more...
28Oct

Asia’s pension systems forced to cut back under COVID pressures

The coronavirus pandemic is weighing on Asia's pension systems, raising concerns about whether some will be up to the task of allowing future retirees to live comfortably. Read also How are Japanese corporate funds adapting to global economic challenges Across the region, employers hit by lockdowns and slower economic activity are struggling to keep pension funds topped up. Governments have responded by scaling back contribution requirements. Read also Highlights of China’s elderly care over past five years "The economic recession caused...

October 28, 2020
News, Slider, , , ,
Read more...
27Oct

US. Apollo Clients Await Inquiry’s Findings on Chief and Jeffrey Epstein

Leon Black helped start Apollo Global Management three decades ago out of the ashes of a junk-bond scandal and built a $400 billion private-equity powerhouse, handling the investments of institutions around the globe, from public pension systems in California to sovereign wealth funds controlled by foreign governments. But now some of his clients are asking pointed questions about his judgment, as his association with a notorious sex offender threatens to cloud his future. In the past two weeks —...

October 27, 2020
News, Slider, ,
Read more...
27Oct

South Korea pension fund to oppose LG Chem’s battery split-off plan

It cited concerns about damage to shareholder value, including the possibility of diluting the equity value. LG Chem said in a statement that it very much regrets that NPS opposes the plan when most domestic and foreign proxy advisers including Institutional Shareholder Services back it, adding it will actively communicate with shareholders. "Although NPS is the second-largest shareholder of LG Chem...it is likely that dissenting votes would have little impact as most proxy advisers have recommended endorsement of...

October 27, 2020
News, Slider, , , , ,
Read more...
26Oct

Jamaica. Alternative investments a must for the modern portfolio

Alternative investments have been creating quite a buzz in the financial market as investors contend with the effects of a global pandemic, geopolitical risks, and the resulting impact on the performance of traditional assets such as stocks and bonds. This roller coaster experience in traditional asset prices caused by the aforementioned factors is expected to become the new normal but has negative implications for long-term financial goals. As a result, the search for investments in assets in non-traditional spaces, which...

October 26, 2020
News, Slider, , , ,
Read more...
23Oct

Ethical investment remains a work in progress

The flurry of activity around Good Money Week this year feels more than justified. Launched in 2005, this annual initiative — which starts on Saturday — aims to help people understand the benefits of sustainable and ethical finance, whether in pensions, investments or savings. And 15 years on, Covid-19 is providing new motivation for investors to explore investing in ethical funds. Read also Canada. Quebec Pension Launches Fund to Boost Diversity in Smaller Firms The hard months of lockdown have...

October 23, 2020
News, Slider, ,
Read more...
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
News, Slider, , , ,
Read more...