Report
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February, 2021
IA and PLSA form stewardship steering group
The Investment Association and the Pensions and Lifetime Savings Association (PLSA) have joined forces to launch a new steering group to examine how stewardship and a focus on long-term investment can be better integrated into the investment process. It is hoped the group – which will be co-chaired by PLSA chair, Richard Butcher, and global head of ...
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February, 2021
Small caps beat FTSE-All share post-pandemic
UK small-caps outperformed the FTSE All-Share in 2020, according to a review of the Numis Smaller Companies Index (NSCI). The NSCI, which has 696 constituents comprising the bottom 10% of the UK main listed market by value, recovered from a March low-point to achieve an all-time high on 29 December and finished the year with a total return of 1.1%. Over ...
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February, 2021
Third of climate funds invested in oil and gas stocks
One third of climate-themed funds being sold in the UK were invested in oil and gas producing companies at their most recent filing date, according to research from think tank Common Wealth, highlighting concerns that investors could be misled over the true nature of sustainable investment products. The research analysed a cohort of over 10,000 mutual ...
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February, 2021
LGPS forecast to record negative cashflow in near-term
The LGPS will be in an aggregate negative cashflow position within the next few years, investment advisory group Linchpin has forecast, as the yield on assets traditionally used to match liabilities has slumped. During the year to March 2020, there was a deficit of 1.2% in contributions over expenditure, according to data from the Ministry of Housing, ...
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February, 2021
Busy year forecast for bulk annuity market
Market volatility resulting from the ongoing pandemic and Brexit could present derisking opportunities for schemes, a report for Willis Towers Watson suggests. Over £30 billion of buy-ins and buyouts were completed last year, according to the group, while more than £24 billion of longevity swaps were carried out. However, a similar level could be ...
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February, 2021
Fund managers lacking on climate engagement
The portfolios of the world’s 30 largest fund managers, which collectively hold $50 trillion in assets, continue to be misaligned with the goals of the Paris Agreement and require urgent action to drive change in key climate-risk sectors, a report by think tank InfluenceMap has found. The report scored companies based on three criteria: engagement with ...
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February, 2021
Schemes confident on pandemic resilience
The bulk of schemes believe Covid-19 is having only little or no impact on the day-to-day running of their scheme, according to a survey by Pensions and Lifetime Savings Association (PLSA), but cautioned against lifting of regulatory easements too soon. More than four-fifths of schemes said the pandemic was not having a detrimental effect on them running ...
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February, 2021
Investors issue climate resolution at HSBC
Investors with combined assets of $2.4 trillion under management have filed a climate change resolution at HSBC, alongside 117 individual shareholders. The resolution, co-ordinated by responsible investment ShareAction, calls on HSBC to publish a strategy and targets to reduce its exposure to fossil fuel assets, starting with coal, on a timeline ...
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February, 2021
UK dividends forecast to rise in 2021
Dividends paid by UK companies fell 44% during 2020, to the lowest annual figure since 2011, according to the Link Group UK Dividend Monitor. However, Link forecasts a 10% rise in headline dividends, which include special dividends, under a best-case scenario this year as pay-outs recover from March. Two-thirds of companies cancelled or cut their ...
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February, 2021
Impact bond issuance surges post-pandemic
A record $500 billion in impact bonds were issued last year, according to data from Bloomberg, an increase of 60% on the 2019. This increase could easily be repeated in 2021, according to a review by Insight Investment. which would take the overall market close to $2 trillion by the end of the year. Government-related issuance, at $260 billion, ...
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