NETHERLANDS - PGGM and ABP have set up a support fund for old people affected by the tsunami disaster in South East Asia.
The Netherlands’ two biggest funds have contributed e1m and are inviting other pension funds to take part in the initiative.
“Many old people in Asia rely on their children to look after them in their old age, so many of those who have lost their homes and families in the tsunami disaster have also lost their ‘pensions’,” the funds’ said in a joint statement.
“This is a structural problem which is likely to assume major proportions, but it does not really fall within the scope of the emergency aid now being organised. ABP and PGGM have therefore devised a plan to set up a support fund financed by small voluntary contributions, for example of e1 per person, from their active members and pensioners.”
The funds’ said they hoped to gather a “substantial capital sum” which would make a significant difference in the areas struck by the disaster.
ABP and PGGM said they were compelled to take action despite a usual reluctance of funds’ to use money for purposes other than pensions, due to the seriousness of the situation.
“The SE Asia support fund is a logical extension of the pension funds’ core activities and is consistent with their philosophy based on solidarity and collective funding,” the funds’ said.
They expect to present detailed plans for the structure of the fund within the next two weeks.
Standard Life has increased exposure to risk assets in three out of five funds in its Active Plus and Passive Plus workplace pension ranges.
Some 48% of employers are unaware of the services or help they offer to members of their defined contribution (DC) schemes, according to Aon.
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