Tag Archives: Pension Funds
Pension Funds: Latest News
Staff, 8:36 pm
Pension funds are good news for infrastructure projects in Africa. Development banks and private equity funds are targeting pension funds in Africa as sources of investment capital. Four African countries hold 90 percent of Africa’s pension fund assets. Despite challenges, African pension funds are likely to make a substantial impact on infrastructure investment in the next few years. One promising trend is the rise of regional funds targeting pensions. They’re making a new source of African capital available to address the region’s infrastructure deficit.
Dana Sanchez, 2:50 pm
About 90% of managed assets are concentrated in four countries including South Africa and Nigeria. SA leads, thanks to rules that allow them to invest 10% of assets through private equity. Nigeria is held back by trust issues. “The thought of using our pension fund for investment in public-sector infrastructure development is highly frightening given the well-known penchant for mismanagement inherent in public-sector institutions in Nigeria,” the Nigerian Labour Congress says. Pension funds are ideal for driving inclusive growth and social stability through long-term projects such as infrastructure, says consultancy firm RisCura.
Staff, 3:13 am
African private equity is having its moment in the sun, with pension funds on the continent ready to invest in their own backyard as investment banks continue to retreat from lending and domestic strategies mature. Sources cited East Africa as “hot.” Countries such as Tanzania, Kenya, Ethiopia and Rwanda were mentioned as offering emerging opportunities in private equity, while Nigeria
Dana Sanchez, 3:06 pm
Much of the current real estate investment in Africa is undertaken by private equity funds. Several other investor types are deterred and largely absent due to legislative restrictions, risks around money laundering and the inward-looking nature of African markets. Overseas pension funds, for example, held back because of legislative restrictions and only sought exposure to certain African markets once these were lifted.
Kevin Mwanza, 5:27 am
Africa Development Bank (AfDB) president Akinwumi Adesina has warned African countries from accumulating debt from the international market that could become difficult to service as interest rates rise and fiscal pressures increase across the continent due to a commodity price slump. “Indebted Africa cannot be a rising Africa,” the multilateral lenders’ president warned about mounting debt levels across Africa
Staff, 6:45 am
The New York State Common Retirement Fund, one of the largest U.S. Pension funds and worth about $180 billion, plans to invest as much as 3% of its assets in Africa in the next five years to diversify its portfolio and boost returns. The figure would be more than $5 billion based on the fund’s current valuation. African private-equity firms, venture capital, real estate and new infrastructure projects such as power plants
Anna B. Wroblewska, 5:38 am AFKI Original
Pensions are big in Africa — surprisingly so. Sub-Saharan pension funds total $380 billion in assets. That’s about $30-billion more than South Africa’s GDP. To put that number on a scale, consider that it bests South Africa’s Gross Domestic Product (GDP) by about $30 billion, making it the third largest economy in Africa after Nigeria! However, while private equity is a stalwart of pension investors around the world, very little African pension capital goes towards private equity.
Makula Dunbar, 3:31 pm
While public sector pension schemes are regulated by the government, industry executives hope that newly implemented legislation will put more trust in privately managed fund models. According to a Bloomberg Africa TV report, Mauritius retirees feel that their fund payments have come up short. Clairette Ah-Hen, CEO of the Financial Services Commission of Mauritius, says that’s because most people aren’t fully aware of pension plan risks.
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