Pharmaceutical firm, Novartis, has lost a legal battle against the Indian government partly because pension funds protested against the firm’s actions labelling it «unfair». The argument arose after Novartis challenged a provision in Indian law stating patent monopolies would be awarded only for truly innovative medicines, rather than for minor modifications of existing medicines. In response, an Oxfam and FairPensions’ campaign against the pharmaceutical giant drew support from pension funds whose assets totalled £1.7trn. A spokesman for FairPensions said it was encouraging that pension fund members and trustees were getting more involved in such issues.
International
Norwegian fund readies € 30bn spending spree
Europ’s largest pension, the Norwegian Government Pension Fund, is about to spend as much as (€30bn, $40bn) on global commercial property, including UK assets, in the latest sign that governments are emerging as leading global investors. The Norwegian Pension Fund, fuelled by sizeable revenues from oil reserves, has amassed a sum of E220bn but has previously been banned from investing in real estate. This is set to change as Norway’s finance ministry is due to revise this rule later this year.
The Business – Global Business News Online
Swiss Life: Employee Benefit Reference Manual 2007
Das Employee Benefit Reference Manual 2007 des Swiss Life Network ist erschienen. Es bietet aktuelle Informationen über die Institutionen der sozialen Sicherheit, private Vorsorgesysteme und die Besteuerung von 47 Ländern. Das EBRM ist das Resultat der Zusammenarbeit des Swiss Life Network mit den Partnerfirmen. Die Angaben zu den einzelnen Ländern sind nach einem fixen Schema strukturiert und erlauben damit aufschlussreiche Quervergleiche. Das auf einer CD gespeicherte umfangreiche Datenmaterial (englisch) auf über 600 Seiten kann für 400 Fr. beim Swiss Life Network bestellt werden.
Employee Benefit Reference Manual 2007
CalPERS Assets Gain 19.1 Percent for Fiscal Year
The California Public Employees‘ Retirement System (CalPERS) earned an estimated 19.1 percent return on investments for the 12 months that ended June 30, 2007 – the highest gain in nearly a decade — to total $247.7 billion. The percentage gain more than doubled the overall CalPERS assumed rate of return of 7.75 percent, which is required to fund retiree benefits. Total assets increased by $36.5 billion over the year.
CalPERS Assets Gain 19.1 Percent for Fiscal Year
US pension funds urge Shell to abandon Iran
Some of America’s most influential institutional investors have written to Shell and other seven international energy companies warning they are becoming increasingly exposed by guarding their ties with the pariah state. The investors include New York City’s five main pension funds and the California Public Employee’s Retirement System.
US pension funds urge Shell to abandon Iran – Times Online
Norwegian pensions investments in Israel criticised
Norway’s Government Pension Fund – Global, formerly known as the National Petroleum Fund, has doubled its investments in Israel in the past year. In 2006 the Fund bought Israeli government bonds worth NOK half a billion. Critics say this enables Israel to finance among other things the controversial separation wall.
The Norway Post
Steuervorteile für Deutsche Grenzgänger
Deutsche Grenzgänger, die im Ausland ihr erstes Dienstverhältnis haben, können für die betriebliche Altersversorgung die Steuerfreiheit nach § 3 Nr. 63 EStG in Anspruch nehmen. Dies geht aus einer Mitteilung der OFD Karlsruhe hervor.
Zahlungen an Schweizer Pensionskassen sind nicht nach § 3 Nr. 63 EStG steuerbegünstigt. Grund: Schweizer Pensionskassen sehen unter anderem die Möglichkeit zum Vorbezug zur Anschaffung von Wohneigentum vor. Dies entspricht nicht den Voraussetzungen des § 3 Nr. 63 EStG. Details regelt ein Merkblatt der OFD Karlsruhe.
Link: Haufe.de
Canada: Funding Levels out of Crisis
After a crisis that imperilled the retirement of millions of Canadians, for the first time in five years the average pension fund is fully funded.
Funding Levels out of Crisis
IAS19 guidelines to de-risk funds
Mercer has claimed the new guidelines on IAS19 accounting standards will accelerate a trend to de-risking amongst UK pension fund. David Fogarty, a worldwide partner in Mercer’s Financial Strategy Group, said the change would force companies to consider where to position their funding targets and the extent to which they should be taking investment risk with their pension plan.
Global Pensions
Institutions continue to drop U.S. equities
As the U.S. equity markets climb to new heights, it seems that a growing number of institutional investors prefer to put their money elsewhere. U.S. equity strategies experienced major outflows, according to a new study by strategic consulting firm Casey Quirk & Associates LLC. Roughly $105 billion in total assets poured out of domestic equity products during the year ended March 31.
This is the largest total one-year outflow from U.S. equity strategies since Darien-based Casey Quirk began its study of institutional flows in 2002. The outflow also marks the second consecutive year of negative flow from U.S. equities, with a total of $135 billion moving out since the beginning of 2005.
Institutions continue to drop U.S. equities – Pensions & Investments
Lehrer-PK von Ontario führt grösste kanadische Unternehmensübernahme an
Der größte kanadische Telekom-Konzern BCE Inc. (Bell Canada) wird für 51,7 Milliarden kanadische Dollar (35,8 Mrd Euro) verkauft. Bei dem Geschäft handelt es sich um die größte Übernahme eines kanadischen Unternehmens überhaupt und um die weltgrößte Privatinvestoren-Akquisition, die es je gegeben hat. Käufer ist ein kanadisch-amerikanisches Privatinvestoren- Konsortium unter Führung der Lehrer-Pensionskasse Ontario Teachers Pension Plan.
FTD.de – Industrie – Nachrichten
Watson Wyatt: Global Alternatives Survey 2007
The Global Alternatives Survey 2007 is conducted annually by Watson Wyatt Investment Consulting for Global Investor. This year it polled 112 investment managers globally to determine the size of assets managed on behalf of pension funds at 31/12/06 across four alternative asset classes. In private equity and hedge funds, the survey is focused purely on fund of funds. For real estate and commodities direct funds are included. The survey is based on data received from investment managers and where they were not able to account separately for assets managed on behalf of pension funds they had to be excluded from the ranking.
Pension Governance Offers Webinars for Pension Fiduciaries about Hedge Fund Valuation
Financial statistics show that pension plans now outpace high net individuals with respect to hedge fund investing. At the same time, sub-prime funds struggle in the aftermath of blow-ups such as Amaranth and Bayou. Additional complexity forces pension fund decision-makers to ensure that their due diligence is rock solid, arguably more so than ever before.
In an effort to assist plan sponsors, Pension Governance, LLC continues its Hedge Fund Toolbox(SM) series with two more online events this week. Join pension plan decision-makers for a lively discussion about the role of the pension consultant (June 26, 2007) and proper valuation policies and procedures (June 28, 2007).
How fund managers vote… at a glance
Savers and pension fund managers can now find out how the fund managers who look after their savings are casting their votes in controversial decisions at company AGMs, thanks to Open Vote, a new searchable database available on the TUC website (at www.tuc.org.uk/openvote ).
Bond story overlooks US strength
Probably the single most important number in the global economy is the long-term rate of interest established by the so-called “benchmark” yield on the ten-year US government bond. This number, which shot up from 4.7 per cent three weeks ago to 5.3 per cent last Tuesday, largely determines the level of long-
The pressure on pension funds to abandon profit-maximising investment management is still growing. If anything, the stampede into bonds will be intensified by the latest increase in interest rates, which, combined with the rise in global stock markets, has returned many pension funds to technical solvency.