September 2020

15Sep

UK. Government encourages pension schemes to invest in green tech and infrastructure

Measures aimed at encouraging pension schemes to invest in a more diverse range of long term assets, including green technology and infrastructure, have been outlined by the government. It has launched a consultation and is seeking views on additional steps to encourage the consolidation of smaller pension schemes into larger schemes. The government believes a key wider benefit of an increase in consolidation could be the increased share of assets saved in large, defined contribution (DC) schemes potentially able to...

September 15, 2020
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14Sep

UK. Credit downgrades present ‘serious challenges’ for pension schemes – AXA IM

A fall in the average credit quality of fixed income indices and increased competition for high-quality assets presents “serious challenges” for pension schemes, AXA Investment Managers (IM) has warned. Since the beginning of the Covid-19 pandemic, rating agencies have down graded over £778bn of corporate issues across global indices, leaving high quality assets in “short supply” during a period of rising demand. AXA IM Buy and Maintain credit team portfolio manager, Simon Baxter, stated that the concentration in high grade...

September 14, 2020
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11Sep

2019 World Pensions Forum Held in EU Capital Before G7 Summit

By M. Nicolas J. Firzli The 8th World Pensions Forum was held 23-24 May: 130 pension executives and supranational experts representing $12 trillion in combined assets convened in Brussels to discuss “Effective Asset Ownership”. The Forum was pleased to note that some of our ideas were taken up by the Finnish presidency of the Council of Europe and the G7 Steering Committee – notably the empowerment of women entrepreneurs and the notion of institutional co-investment in private equity and sustainable...

September 11, 2020
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08Sep

ANC on prescribed assets in South Africa

The ANC’s head of Economic Transformation, Enoch Godongwana, says that the party is moving away from talk of ‘prescribed assets’ as economic policy, but still wants to find ways to ‘unlock’ South Africa’s pensions to assist with the country’s infrastructure goals. Godongwana was speaking to Insurance company Alexander Forbes in an interview on a range of economic topics, including the party’s plan for pensions and prescribed assets in South Africa. Read also South Africa. There’s a pensions train...

September 8, 2020
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07Sep

US. DOL´S mixed message for plan sponsors

The Labor Department is on a tear. In recent actions, it has opened the door for sponsors of defined contribution retirement plans to consider adding alternative investments such as private equity to their lineups. And it also sent a stern warning for both defined benefit and DC plan sponsors over including investments with an explicit ESG focus. More recently, it has proposed blocking an ERISA plan sponsor's ability to vote a proxy unless the issue has an economic impact on...

September 7, 2020
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07Sep

Canada. CPPIB announces $235M investment in GLP Japan logistics fund

On 4 September the Canada Pension Plan Investment Board (CPPIB) confirmed its participation in the launch of a $2.6 billion Japanese logistics fund announced by GLP late last month, marking the latest cooperation between the pension fund manager and Asia’s largest logistics developer. CPPIB, which has backed GLP ventures in Japan since 2011, is committing JPY 25 billion ($235 million) to GLP Japan Income Fund (GLP JIF), an open-ended core vehicle which GLP and its partners have already seeded...

September 7, 2020
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04Sep

What You Do Is Who You Are: How to Create Your Business Culture

By Ben Horowitz Henry Louis Gates Ben Horowitz, a leading venture capitalist, modern management expert, and New York Times bestselling author, combines lessons both from history and from modern organizational practice with practical and often surprising advice to help executives build cultures that can weather both good and bad times. Ben Horowitz has long been fascinated by history, and particularly by how people behave differently than you'd expect. The time and circumstances in which they were raised...

September 4, 2020
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04Sep

Norway Pension Giant Drops Three Companies over Alleged Human Rights Violations

Norway’s $1.17 trillion Government Pension Fund Global (GPFG) said it is excluding three companies from the fund because of an “unacceptable risk for violation of human rights.” They are Taiwan-based Formosa Chemicals & Fibre Corp. and its subsidiary Formosa Taffeta, as well as Indian textiles company Page Industries. Norway’s central bank, Norges Bank, which manages the country’s sovereign wealth fund, made the decision based on the recommendations of its Council on Ethics. The council also recommended that the fund...

September 4, 2020
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03Sep

Pensions Need a ‘Safety Valve,’ Says JPMorgan

Pensions entered the Covid-19 pandemic significantly exposed to corporate credit risk, relying on a traditional investment strategy that may be heading for failure, according to JPMorgan Chase & Co.’s asset management group. They’ve been hedging the volatility of their pension liabilities by taking on “a very concentrated exposure to corporate credit,” Jared Gross, the head of institutional portfolio strategy at J.P. Morgan Asset Management, said in a phone interview. Largely holding corporate bonds at risk of being downgraded...

September 3, 2020
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03Sep

Europe needs a fully fledged capital markets union – now more than ever

The capital markets union (CMU) is one of the cornerstones of the euro area's financial architecture. But progress in developing it has been slow. Since the agreement on establishing CMU in 2015, many subprojects have been launched, and some completed, but European capital markets are still far from being fully integrated. Despite the fact that the coronavirus (COVID-19) crisis has made CMU more important than ever, progress has unfortunately slowed, notwithstanding the substantial headway made on the fiscal side...

September 3, 2020
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