Top news
Asset managers tread carefully following DWS’s fine by SEC
Industry focuses on prudent stance in light of greenwashing risks
AkademikerPension sees positive return impact after shedding last oil/gas major
Danish occupational pension fund divests Italy’s Eni, excluding last large upstream oil and gas company in its portfolio
Investors call on Rishi Sunak to not backtrack on climate change
IIGCC, PRI and UKSIF, among others, expressed concern with the prime minister’s proposals to ‘backtrack on vital policy measures that support the UK’s transition to net zero’
FCA set to kick off review of private market valuations
IOSCO recently highlighted valuations as a vulnerability for the private sector
Institute highlights risks for DB funds in ‘productive finance’ investing
EDHEC Infrastructure & Private Assets Research Institute recommends The Pensions Regulator set up best practice rules
ESMA focuses on digital change and green transition
In 2024, ESMA will develop rules for sustainable finance as part of the new European Green Bond Regulation
PRA launches consultation on Solvency II reforms
Proposed reforms are expected to improve insurers’ investment flexibility by enabling broader and quicker investments in their matching adjustment portfolios
Sustainability chiefs overwhelmed by plethora of ESG disclosures and platforms
Despite the number of executive-level CSOs appointed having almost tripled since 2016 (9%) to 28% in 2021, they are grappling with reporting and impact
ExxonMobil Pension Plan gets first ever TPR fine on climate change reporting
In a response to the Regulator, the trustees assured TPR they ‘took their climate reporting obligations seriously and that their non-compliance was inadvertent’
ESMA focuses on digital change and green transition
In 2024, ESMA will develop rules for sustainable finance as part of the new European Green Bond Regulation
ExxonMobil Pension Plan gets first ever TPR fine on climate change reporting
In a response to the Regulator, the trustees assured TPR they ‘took their climate reporting obligations seriously and that their non-compliance was inadvertent’
Paul Lorentz, Manulife Asset & Wealth Management: Canada to Europe, via Asia
Values are changing rapidly in the world of asset management. Leaders come and go, but perhaps less so than in the past, and loyalty to a company is increasingly appreciated by clients, as a sign of commitment and stability.
USS: British universities adopt modern pension investment governance
Mirko Cardinale, head of investment strategy and advice at USS Investment Management, speaks to Carlo Svaluto Moreolo about the recent changes in the scheme’s governance framework
Pension funds on the record: The investors developing their own index methodologies
FRR and PUBLICA are among the growing number of European pension funds developing proprietary benchmarks to achieve their sustainability objectives
Franklin Templeton’s Jenny Johnson: Finding the way through the noise
When Jenny Johnson arrives, the atmosphere changes. She is composed, smiling and friendly and her boundless energy fills the room.
Sweden's AP3: Adding value through active management
Pablo Bernengo, CIO of Tredje AP-fonden (AP3), talks to Carlo Svaluto Moreolo about the fund’s active approach to investment
Alecta should never had made Heimstaden Bostad investment, says CEO
Swedish occupational pension fund in talks with Norwegian billionaire Ivar Tollefsen and Heimstaden to renegotiate terms of investment
Obituary: Patrick Bloomfield
Patrick was a leading figure in the pensions industry for over 25 years
Open-ended investment funds face up to the shadow banking dragnet
The debate over the systemic risk of non-bank financial institutions (NBFIs) – sometimes called shadow banks – is a recurrent theme but it has recently moved to the forefront thanks to tighter monetary policies, geopolitical risks and factors such as the UK’s LDI crisis. While regulators are assessing the threats posed, most market participants believe changes will not happen for years. For some, there are fears that largely unleveraged segments like open-ended investment funds could be unfairly targeted
How the AT1 bond market shrugged off the Credit Suisse debacle
On a late Monday evening in August, the Italian right-wing government unexpectedly announced a new 40% tax on banks’ ‘windfall’ profits derived by the higher lending rates. Shares in Italian banks tumbled, banking executives cried foul, and analysts poured scorn over the measure. The government, which was hoping to raise up to €3bn to help families and small businesses, backtracked shortly after, scaling back the tax.
Britain’s LDI crisis: When things nearly fell apart
On 23 September 2022, Kwasi Kwarteng, the then UK chancellor of the exchequer, announced a £45bn (€52bn) package of tax cuts. The hand-outs, designed to please key voters, were the wrong gift at the wrong time. For several years, the Bank of England had been attempting to end quantitative easing and start putting a higher price on borrowing.
Private assets still a priority for pension fund investors
Investor sentiment towards private markets continues to be positive, despite the continuing challenges of higher interest rates and ongoing macroeconomic uncertainty.
Resistance to Germany’s new buffer fund proposal
Last year, the manager of Germany’s pay-as-you-go first-pillar scheme, Deutsche Rentenversicherung, recorded income of €363bn, the largest share coming from contributions (€275.6bn), and €87.4bn in public subsidies.
Cambridge and Westminster: a tale of two pension schemes
The Houses of Parliament and Cambridge University are two venerable British institutions. But the differences in how they run their pension arrangements illustrate the contrast between the UK-style pooled liability-driven investment (LDI) and a more traditional form of pension investing, no longer as popular in the UK but still common elsewhere.
Viewpoint: Macron’s reform paves way for development of French second- and third-pillar pension
The rationale of the reform is simple: the rising life expectancies combined with decreasing birth-rate have accelerated the aging of the French population
Viewpoint: Let us redefine industrial policy
Peter Kraneveld proposes to think in terms of ‘economic change policy’ instead
How to improve investment committees
Most asset management firms, private and public institutional investors and family offices have investment committees. Poorly designed boards can potentially destroy substantial value in the investment management industry, yet little research is available. I would like to propose a new way to think about the governance of investment committees.
Private assets still a priority for pension fund investors
Investor sentiment towards private markets continues to be positive, despite the continuing challenges of higher interest rates and ongoing macroeconomic uncertainty.
Resistance to Germany’s new buffer fund proposal
Last year, the manager of Germany’s pay-as-you-go first-pillar scheme, Deutsche Rentenversicherung, recorded income of €363bn, the largest share coming from contributions (€275.6bn), and €87.4bn in public subsidies.
Rethinking net-zero equities benchmarks
The EU developed rules for climate benchmarks in 2019. After a surge in uptake, investor sentiment is already cooling
Portfolio strategy – Fixed income & credit
Factors including rising inflation and interest rates, the war in Ukraine, and the uncertainty surrounding the global economy might have significantly slowed down the growth of an alternative asset class like private debt. But this has not been the case, and while fundraising by private debt managers for 2022 and 2023 might be challenging, investors are making new long-term commitments.
Portfolio strategy – Equities
Our report shines a light on investors’ thought processes when it comes to choosing active, passive or a combination of the two. We surveyed CIOs and senior portfolio managers to get an insight into how they construct their equity portfolios. Our report also features an investigation into the fall in listings on the UK equity market, at a time when listing domicile is increasingly consequential aspect of portfolio construction.
Portfolio strategy – Fixed income
Last year ushered in a new era for global fixed income and credit markets. It was the worst, in terms of returns, for bond investors in years, but it signalled a regime change. Investors need to be prepared for structurally higher inflation and rates, as well as higher volatility. But for fixed income managers, this is an environment where value is easier to find. Our report looks at this new beginning for fixed income investors, and at how selectivity has become key in the high yield and loan markets.
Portfolio Strategy – Emerging market equities
The Adani corporate scandal in India brought the issue of corporate governance in emerging markets back to the fore. As Lynn Strongin Dodds finds, however, emerging market corporates are slowly adapting to the requirements of institutional investors in terms of governance.
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