Temer’s Pension Reform Still Lacking Congressional Votes

Poll reveals massive displeasure with president’s government among Brazilians.

Despite President Michel Temer’s best efforts, Brazil’s social security-linked pension reform still cannot seem to gain enough Congressional support.

According to Reuters, Minister Carlos Marun told business executives Thursday that “many” lawmakers were on the fence about approving Temer’s proposal, which looks to increase retirement and social security collection ages as a measure to curb the country’s ever-growing budget deficit.

To pass, the bill would need to be approved twice by a three-fifths super majority in each of Brazil’s two chambers, the Federal Senate (the upper house) and the Chamber of Deputies (the lower house). This would require at least 308 votes from the lower house’s 513 members, scheduled to take the first vote in the week of February 19.

Marun had told reporters Tuesday that nearly 270 votes were locked in and that the government was taking suggestions to improve the controversial bill.

For more stories like this, sign up for the CIO Alert newsletter.

The top priority of Temer’s administration, the bill has had a tumultuous time. Temer, who has been making a litany of public television appearances while his administration has been doing various radio and television marketing to drive the message home, had initially hoped it would pass last year, but it was pushed back by a corruption scandal, surgery, and an overall lack of support from the government. In addition, 2018 is an election year, which adds even more difficulty as attention is elsewhere.

Temer is not running for reelection come October. According to Reuters, in a survey by pollster Dastafolha, a whopping 70% of Brazilians cited their displeasure of his administration.

Tags: , , ,

Pennsylvania SERS Approves $675 Million in New Investments

System has approved nearly $1.8 billion in investments since September.

The $28.7 billion Pennsylvania State Employees’ Retirement System (PSERS) approved $675 million in new investments at its board meeting Wednesday. The system has now approved nearly $1.8 billion in new investments since September.

Within the Global Public Equity asset class, PSERS decided to hire two managers for its emerging investment manager program, and earmarked $200 million to invest with Leading Edge Investment Advisors, LLC as part of an emerging markets equity strategy. It also will invest $200 million with FIS Group, Inc., as part of a non-US small cap equity strategy.  PSERS said that funding for both strategies will come from the MCM Russell 1000 Index portfolio.

Within the fund’s multi-strategy asset class, the PSERS board agreed to invest another $200 million in Eaton Vance Management’s Global Macro Absolute Return Advantage Strategy. Funding for the strategy will come from the MCM Bond Index portfolio.

And the final $75 million in approved investments has been committed to LLR Equity Partners V, L.P. PSERS described this as a follow-on investment to focus on growth opportunities in the healthcare, technology, and service industries. The board said the investment will be funded by cash.

Want the latest institutional investment industry
news and insights? Sign up for CIO newsletters.

The $675 million allotment follows $175 million in new investments announced in December, as well as $225 million the previous month, and $700 million in September.

The board also approved a 2018 aggregate pay increase budget of 5% of the investment professional payroll. It said that individual increases, when appropriate, will vary based on performance reviews.

Tags: , , ,

«