first_imgHowever, despite DNB’s objection, Wonen said that it had adjusted its pension plan to the current arrangements of Detailhandel, through reducing its contribution from 21.6% to 20.8% of the pensionable salary.It also increased its franchise – the part of the salary that is excluded from pensions accrual – from €10,317 to €12,564, but kept the annual accrual rate at 1.75% of the salary.Wonen, which had to apply a 3.6% rights cut earlier, reported a funding of 111.1% at June-end, when the coverage ratio of Detailhandel was 115%.At the Pensioenfonds voor de Detailhandel nobody was available for a comment. The scheme has yet to publish its annual report for 2013.The Stichting Pensioenfonds Wonen said that it lost 3% on investments last year, in part due to the effect of rising interest rates on its 57.4% fixed income portfolio, which generated 0.9%, but largely to a 5.9% loss on its full hedge of the interest risk on its liabilities.It made clear that the introduction of the ultimate forward rate as the discount rate for its liabilities, triggered its decision to replace long-term interest swaps with swaps with a shorter duration, “in order to match the susceptibility to interest rates with the UFR methodology”.In addition, Wonen said it converted its remaining swaption into a swap and subsequently froze its swaps portfolio. As this decreased the effect of the interest hedge, it indicated it would also look at the interest cover during its planned asset liability management study.Wonen reported a 11.9% profit on its 22.3% equity holdings, and said it lost 2.9% on its 12.6% property portfolio last year.The scheme returned 10.2% and 3.3% respectively on its private equity and infrastructure investments, but noted that private equity had underperformed 11 percentage points.Its board further indicated that it had not adjusted its strategic investment mix, pending decisions on the new pensions contract, based on the new financial assessment framework (FTK).The Pensioenfonds Wonen has 24,675 active participants, 91,805 deferred members and 13,150 pensioners. The €2.2bn pension fund for the furnishing sector, Wonen, plans to merge with Detailhandel, the €13bn scheme for the retail industry.However, in its annual report, it indicated that the intended merger has been delayed by supervisor De Nederlandsche Bank (DNB), which “had rejected the proposed solution for bridging the different funding level of both schemes”.When asked by IPE, the board of Wonen declined to elaborate on the suggested solution, or to clarify at what stage the preparations for a possible merger were.In its annual report, the board of Wonen said that last year, it had tasked a special merger working group with assessing the options of joining Detailhandel by 1 January 2014.last_img read more

first_imgBNP Paribas and Kempen Capital Management are currently available as asset managers, but no insurer has yet been “linked up”, they said.The PPI has contracted APG and its subsidiary InAdmin for pensions provision and communication.According to Ronald Ketellapper, trustee at i-PensionsSolutions, Credit Suisse and Swiss Re have merely financed the PPI, and that their business model would focus on selling services to affiliated asset managers and insurers. PPIs are an alternative pensions vehicle for low cost and transparent DC plans in the second pillar for employers. Swiss bank Credit Suisse and re-insurer Swiss Re have launched a PPI pensions vehicle for defined contribution arrangements in the Netherlands.The companies said their PPI – dubbed i-PensionSolutions – would be the first with a “truly open architecture”, allowing a participating employer to opt for an asset manager of its own choice.The employer will also be able to select an insurer if it chooses to insure additional risk, such as with a partner’s pension or in the event of labour disability. However, before the employer can make a selection, the preferred asset manager or insurer must be affiliated with the “platform” of i-PensionSolutions, according to Credit Suisse and Swiss Re.last_img read more

first_imgA significant minority of Irish pension schemes have failed to submit funding proposals, despite trustees now being nearly two years late.The Pensions Authority said in a statement that 30 defined benefit (DB) schemes had yet to submit any funding proposals as of the end of February.It said it was now deciding whether trustees would be ordered to reduce benefits to tackle deficits, or if the schemes would simply be forced to wind up.Releasing an analysis of actuarial data, the Authority said 551 DB schemes remained open to future accrual, while 152 were closed but continuing to make payments. Of the more than 700 schemes, 416 complied with the current funding standard, reporting an aggregate surplus of €3.9bn.Nearly 290 schemes remained in deficit, with their €22.1bn in assets falling nearly €5bn short of meeting liabilities.The Authority said that, of the 287 schemes in deficit, 30 had yet to submit any funding proposal.While the figure is a significant reduction over the more than 70% of schemes that missed the initial 30 June 2013 deadline – a figure that had fallen to around 40% by August that year and further to 56 by April 2014 – it still meant more than 10% of funds in deficit were 20 months late in meeting regulatory requirements.The figures also underlined the significant fall in the number of total schemes, down from 933 in 2012 and 890 in 2013.Brendan Kennedy, the head of the regulator, nevertheless praised the marked improvement in funding across the DB universe.“The position shown whereby 59% of DB schemes meet the funding standard is a considerable improvement over recent years, though it must be remembered that this improvement is the combined result of multiple factors, including the closure of some schemes, and benefit reductions and contribution increases in most of the remaining schemes,” he said. In the most exhaustive and authoritative breakdown of Irish DB assets released to date, the regulator also disclosed that nearly 60% of the sector’s €51.9bn in assets was invested in real assets.Overall, the funds had 41.7% in equities, 31.3% in EU sovereign debt and a further 6.9% in other bonds.The “other” asset category – comprising hedge funds, commodities, derivatives and annuities, among other things – accounted for 12.6% of assets, with a further 4.2% in property and 3.1% in cash.Kennedy was pleased the DB industry’s overall exposure to equities had declined but expressed concern that trustees were relying on equities to meet liabilities.“This strategy entails considerable risk, which will fall especially on the younger members of the schemes,” he said.“High risk is not an appropriate approach to take where the benefits cannot otherwise be afforded.”The regulator has previously said schemes seemed to begrudge de-risking, adding later that their unwillingness to de-risk remained a “significant concern”.Read Brendan Kennedy’s views on the future of the Irish pensions market,WebsitesWe are not responsible for the content of external sitesLink to Pensions Authority datalast_img read more

first_imgLatvia’s mandatory second-pillar funds generated a weighted average 12-month return of 3.24% as of the end of September, according to the Association of Commercial Banks of Latvia (LKA).The results are a significant improvement on those of the second quarter (-0.16%) and the 0.28% return posted a year earlier.According to the LKA review, the third quarter was especially favourable for emerging market securities, Brexit notwithstanding, with equities benefiting from stronger economic growth, and government bonds from positive yields.In Latvia’s case, the best 12-month returns, of 3.68%, came from the four balanced funds, followed by the eight active, equity funds at 3.51% and the eight bond-weighted funds at 2.41%. Geographically, the funds reduced their exposure to Latvia over the year from 43% to 38.4%, and from Western Europe from 16% to 12%.Meanwhile, the share of investments in Eastern Europe rose from 20% to 24.6%, and that in North America from 4% to 6.7%.In terms of asset-class shifts, the active funds decreased, by 2 percentage points, their holdings in equity and equity funds, and in bond and bond funds, to 25% and 52%, respectively, while upping their investments in other funds, bank deposits and cash.The conservative funds, meanwhile, retained a high share (78%) in bonds.Over the year, membership grew by 1.2% to 1.25m, and assets by 19.5% to €2.65bn.The active plans remain by far the most popular, with 64% of the total membership, followed by the conservative plans at 27%.Since the inception of the three-pillar system in 2001, the second-pillar funds have earned an estimated €432m in investment income net of management and custodian fees, and other charges, while the average savings per member as of end-September breached the €2,000 mark.The third-pillar funds generated even higher returns, with the 12-month average rising to 4.41%, from 1.55% a year earlier.The returns of the four balanced funds shot up from 1.41% to 4.02%, and those of the 10 active plans from 1.6% to 5.7%, with the two US dollar-denominated funds outperforming the rest at 6.04%.At the First Closed Pension Fund, the scheme for the 12,750-odd employees at Latvia’s state-owned electricity utilities and part state-owned telecommunication company, returns edged up from 1.79% to 2.9%.last_img read more

first_img“Further clarity may also be needed so that public shareholders have full confidence that proposals are not being unduly influenced by the well-known relationships between Sky and 21st Century Fox,” the LAPFF said in a statement.Sky non-executive directors John Nallen and Chase Carey both have roles at Fox, as CFO and vice-chairman, respectively.Most notably, Sky chairman James Murdoch is also chief executive at Fox.Also on Sky’s board are AP7 vice-chair Adine Grate and Aberdeen Asset Management chief executive Martin Gilbert.Thomas Moore, a UK equities fund manager at Standard Life Investments, said in an interview with the BBC that the current price was not sufficient for shareholders.He said he hoped the independent directors such as Gilbert would “step up and put forward a strong case that this bid undervalues the company”.Elsewhere, the aggregate deficit of UK private-sector defined benefit schemes improved by nearly 30% during November, according to the Pension Protection Fund (PPF).The total shortfall across the 5,794 schemes in the PPF’s 7800 index was £194.7bn at the end of last month.At the end of October, the figure was £275.9bn. The overall funding ratio rose to 88.1%.The improvements stemmed from a rise in Gilt yields following the election of Donald Trump as US president, causing liabilities to fall.Most major equity markets fell in sterling terms during November.Liabilities have also fallen due to a change to the PPF’s calculation methods, introduced at the start of this month.Andy Tunningley, head of UK strategic clients at BlackRock, warned that “the gains of recent months only bring funding levels only slightly above where they were at the start of the year”. He added that 2016 had been “another lost year for many pension funds”.Tunningley said pension funds should not rely on longer-term rises in yields, as there was a “huge” imbalance between supply and demand for government debt. He said: “Pension funds cannot rely on rising yields to escape their funding holes – most pension funds should hedge more interest rate and inflation risk than they currently do.”In other news, BNY Mellon has won a contract to supply custody, accounting and depositary services for the Local Pensions Partnership’s (LPP) £5bn global equity fund.The fund – LPP’s first since it established its pooling project – was announced at the start of November.It comprises internally managed equities for the London Pension Fund Authority and Lancashire County Pension Fund, as well as mandates run by MFS Investment Management, Robeco and Magellan.Finally, the UK government has launched a review of auto-enrolment for next year.The Department for Work and Pensions announced this week that the review would focus on self-employed workers and people with multiple jobs.It will also “examine” the 0.75% charge cap imposed on auto-enrolment defined contribution schemes.Almost 7m people have been enrolled into a pension fund since auto-enrolment came into force in October 2012.By 2018, all employers will be required to have some form of pension fund for employees. The Local Authority Pension Fund Forum (LAPFF) has warned directors of broadcaster Sky not to undervalue the company as it considers a bid from 21st Century Fox.Fox and Sky have agreed a price of £10.75 (€12.86) per share, valuing the company at more than £18bn.Kieran Quinn, chairman of the LAPFF, said: “All directors of Sky have a duty not to disadvantage the public shareholders, and the position of the non-executives will need to be robust to ensure the premium paid is appropriate and that shareholders are not disadvantaged by any temporary low in the share price.”The LAPFF, which represents the majority of the UK’s local government pension funds for shareholder issues, said the bid should be put to a shareholder vote.last_img read more

first_imgSweden’s third national pension fund, AP3, made a 9.4% return on investments last year, after expenses, boosted by equities, inflation, and currency risk.This is up from the 6.8% it generated in 2015, the fund reported.Kerstin Hessius, chief executive of the Stockholm-based pension fund, said: “A net result of SEK28bn [€2.9bn] is a strong performance, especially considering the weak performance of equity markets in the first six months of the year.”This net result in absolute terms was up sharply from the SEK19.6bn produced in 2015. Releasing its 2016 annual report, the SEK324bn pension fund said that, within its investment portfolio, the “risk categories” of equities, inflation – which includes real estate – and currencies made the largest positive contributions to income.The result brought the annualised return after expenses over the past five years up to 10.9%, from 8.4% in the period ending 2015. However, the 10-year annualised return remained on the same level as the previous year, at 5.7%.Hessius said AP3 had doubled its holdings in green bonds during the year, cementing the pension fund’s position as one of the largest Nordic investors in the instruments.Green bond investments rose to SEK9.5bn from SEK4.5bn.The issuance of green bonds – instruments linked to environmentally friendly investments – has grown strongly since 2012.AP3’s overall capital grew to SEK324.4bn, from SEK303bn during the year.Along with Sweden’s other main buffer funds AP1, AP2, and AP4, AP3 exists to create long-term returns to make up any shortfall between pension contributions and disbursements in the state system. AP3 made payments of SEK6.6bn into the pension system in 2016.This was in line with the payments made by AP1 and AP4, but higher than the Gothenburg-based buffer fund AP2, which paid SEK4.9bn into the state pension fund last year.last_img read more

first_img Meyers joined JLT last year and helped establish its service provision for LGPS pooling. This included a partnership with Alpha AMC, aimed at helping LGPS pools establish internal investment and operations capabilities. Willis Towers Watson – Bibi de Vries has been appointed head of Benelux at the investment consultancy. She took up the role yesterday, and is responsible for setting the firm’s strategic direction for the Benelux and driving growth in the Belgian, Dutch and Luxembourg markets. and all Benelux markets. She succeeds Bart den Hartog, who is joining elipsLife in Zürich, Switzerland. De Vries had already been working at Willis Towers Watson since last year, when she joined as a senior consultant working in business development. She was previously a member of the Dutch Parliament from 1994 until 2006, and then spent nine years with Achmea, a Dutch financial services company. Aon Hewitt – Tiziana Perrella has been appointed to the consultancy group’s risk settlement group as a principal consultant. She joins Aon Hewitt after eight years with JLT Employee Benefits, where she was a principal and head of buyout services. Before this, Tiziana spent 10 years with Mercer. She started her career in the pensions industry at Prudential. She is a fellow of the Institute of Actuaries and has been active on several sub-committees within the actuarial profession, including as a member of the Medically Underwritten Bulk Annuities (MUBA) Working Group.The 300 Club – The international investor thinktank has formally launched its North American chapter. Led by Chris Ailman, CIO of the California State Teachers Retirement System, the group has also added three new people to its membership: Ted Eliopoulos, CIO of the California Public Employees’ Retirement System; Sam Masoudi, CIO of the Wyoming Retirement System; and Russell Read, CIO of the Alaska Permanent Fund.Launched in the UK by Hermes chief executive Saker Nusseibeh in 2011, the 300 Club is a group of investment professionals – predominantly asset owners – who publish thought leadership papers aimed at generating new thinking for various areas of investment and pensions management. Its current chairman is Stefan Dunatov, CIO of Coal Pension Trustees.Capita Employee Benefits – Akash Rooprai has been appointed head of pensions risk management. He has over 25 years of experience through previous roles at Partnership and Mercer. He started his career down the actuarial path, before moving into bulk annuities. Fulcrum Asset Management – Charles Jewkes has been hired to the newly created position of director for global financial institutions. He will be responsible for building relationships with major insurers and banks, the asset manager said. He joins from Schroders where he was business development director focusing on insurance companiesFinancial Reporting Council – The FRC, the UK’s audit watchdog, has appointed Mark Zinkula to its board. Zinkula is the CEO of Legal & General Investment Management, a role he has held since 2011. He replaces Elizabeth Corley, former CEO and now vice chair of Allianz Global Investors, from 1 April.Northern Trust – Katharine Morris has joined as head of sales for the group’s Global Fund Services business in the UK. She is responsible for promoting Northern Trust’s investment operations outsourcing, fund administration, and range of asset servicing solutions to UK asset managers. Morris joins from HSBC Securities Servicing where she was head of UK sales.J O Hambro Capital Management – The London-based investment boutique announced this week that UK equities manager John Wood is to retire on 30 September this year. He joined the group in 2005 to launch its UK Opportunities fund, and has led it to top-quartile performance since inception. The management of this strategy will pass to his co-managers Rachel Reutter and Michael Ulrich. JLT Employee Benefits, Willis Towers Watson, Aon Hewitt, 300 Club, Capita Employee Benefits, Fulcrum, FRC, Northern Trust, JOHCMJLT Employee Benefits – The consultancy has established a new “cross functional knowledge group” dedicated to servicing local government pension schemes (LGPS) in the UK. The new LGPS Assurance Team is made up of eight individuals with expertise across all areas of pensions and experience of the public sector. The individuals and their responsibilities are:Adrian Chapman, LGPS and public sector administration services directorKaren Scott, market development and client managerLorraine Harper, governanceCameron McMullen and Nick Buckland, investment consultingSteve Birks and Danny Snow, administrationSteve Jones, GMP reconciliation services and data services In addition, IPE has learned Andrien Meyers is to leave JLT at the end of the month and return to his previous role in charge of the London Borough of Lambeth’s pension fund and treasury. He will also work with the LGPS’ Scheme Advisory Board and government officials on the efforts to pool LGPS assets.last_img read more

first_img“The consequences of the company’s actions have had devastating and tragic consequences… for the local population, company employees and the environment around Corrego do Feijao.” Swedish state pension buffer fund AP1 has begun selling SEK407m (€38.6m) worth of equities and bonds of Brazilian mining company Vale, after the AP Funds’ Council on Ethics recommended the exclusion the company from the AP funds’ portfolios.The recommendation follows the fatal collapse of a tailings dam at one of its mining facilities in Brumadinho, Brazil, last month.The council said it was recommending AP1, AP2, AP3 and AP4 exclude Vale because the council had lost confidence in the firm, adding that it could be linked to violations of three major international conventions.In a statement, the council said: “It would appear that the company did not act sufficiently quickly on reported deficiencies regarding the safety of the tailings dam in Corrego do Feijao.  John Howchin, Council on EthicsJohn Howchin, secretary general of the AP funds’ ethics council, said: “I am very pleased to see BHP take leadership on this issue.  We now need that leadership across the rest of the sector.”The AP funds, the Church of England’s investment bodies and other investors running a combined £3trn (€3.5trn) also welcomed BHP’s move.Adam Matthews, director of ethics and engagement for the Church of England Pensions Board, said: “Communities, workers, banks and investors need the assurance that best practice will become the new minimum requirement across the mining sector.“Independence and transparency will be key to re-establishing trust and as investors we look forward to playing our part in working with global experts and industry in advancing the call we have made.”Investors will meet in April with industry experts and company representatives to discuss the demands for greater safety.center_img Source: TV NBRAn aerial view of the Brumadinho dam collapseA spokesman for AP1 told IPE that the pension fund had SEK350m invested in Vale shares and SEK57m in the company’s bonds, according to figures for the end of June last year.“We have now initiated a total exclusion of those equities and bonds,” he said.Meanwhile, AP2 and AP4 said they had no holdings in the company, and AP3 said it had only had a small exposure to a fund that had invested in Vale.AP4 and AP3 said they had decided to follow the Council on Ethics’ recommendation to exclude Vale. A spokeswoman for AP2 said that when the fund switched to its internally-developed ESG indices for global equities last year, the Brazilian company had not been included.BHP pledges to improve tailing dam securityAt the start of this month, institutional investors led by the Church of England called for a global independent public classification system to monitor the safety risk of tailings dams, in the wake of the Brumadinho collapse that killed more than 100 people.In a statement published on 19 February, fellow mining company BHP Billiton said it planned to meet investors and other interested bodies later this month to help speed up its work to improve the safety of its own dams. It also voiced support for an independent oversight body.The company said: “BHP will continue to accelerate its work with the industry to advance the science and technology required to improve the safety of tailings storage facilities.“This includes existing workstreams such as early warning technologies, better models and monitoring of possible modes of failure, tailings dewatering options, and dry tailings storage viability at scale.”last_img read more

first_imgAlex Millar, head of EMEA institutional distribution and sales at Invesco, said a number of respondents to the survey had said they expected the end of the business cycle was imminent.“Public market volatility has combined with late cycle concerns to lead sovereigns to defend, diversify and explore new opportunities,” he said.The majority of sovereign investors polled by Invesco (89%) said they anticipated the end of the economic cycle within two years.Invesco also highlighted that sovereign investors were diversifying their asset allocations, most likely in an effort to protect themselves from a future downturn. Allocations to “illiquid alternatives” – including private equity, real estate and infrastructure – rose to 18% on average and have steadily increased in the past five years. The survey was conducted immediately after the global equity sell-off in the fourth quarter of 2018. Sovereign wealth funds (SWFs) and central banks are preparing for an end to the current business cycle by increasing fixed income allocations, according to Invesco Asset Management.The asset manager’s latest SWF survey – which covered 139 sovereign investors and central banks with $20.3trn (€18.1trn) in assets – revealed that the average fixed income allocation rose from 30% to 33%, while equity holdings fell from 33% to 30%.center_img China beats Europe as investment destinationWithin equity allocations, Invesco reported an increase in allocations to China. Despite trade war tensions between the US and China, the attractiveness of China as an investment destination increased according to Invesco’s measurement, with respondents rating it 6.1 out of 10, compared to 5.2 in 2018’s survey.Roughly 90% of investors that already had China exposure held Chinese equities, which Invesco said demonstrated that the country’s efforts to open up its capital markets were “bearing fruit”. Fixed income allocations were also likely to rise, Invesco added, with Chinese bonds being added to global benchmarks and access improving through the Bond Connect programme.Millar said: “The shift toward China, at a time when trade wars are adversely impacting equity markets, demonstrates sovereigns’ ability to look past short-term geo-political skirmishes driving the news agenda and capitalise on core dynamics, in this case the continued maturing of the world’s second largest economy.”In contrast, respondents were negative towards Europe, Invesco found. Almost a third of investors cut their allocation towards Europe in 2018, citing concerns around Brexit and the rising influence of populist political parties.Just 13% of investors said they would put more money into Europe this year, while 40% said so for Asia and 36% for emerging markets.last_img read more

first_imgThe home has features such as decorative ceilings.Mr Stefan said post-war homes were becoming highly sought after, particularly in areas like Kedron where Queenslanders were more prevalent.“The fact the home was post-war and not a Queenslander is unique for the area, and it attracted a lot of interest because you can knock it down,” he said.The home was on a large 1214sq m block, which was also rare for the area and a massive drawcard for buyers.According to CoreLogic data, the median house sale price in Kedron is $707,500.Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 10:02Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -10:02 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD432p432p270p270p180p180pAutoA, selectedAudio Tracken (Main), selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenJune, 2018: Liz Tilley talks prestige property10:02 The home at 77 Broughton Rd, Kedron, sold for $1,200,000.BUYERS are doling out the big bucks for post-war homes on large blocks.The home at 77 Broughton St, Kedron, sold for $1,200,000, with 25 groups through the home at inspections and five written offers placed on it within two weeks. Inside 77 Broughton Rd, Kedron.More from newsFor under $10m you can buy a luxurious home with a two-lane bowling alley5 Apr 2017Military and railway history come together on bush block24 Apr 2019LJ Hooker Stafford sales agent Adam Stefan said the buyers were a young couple who would live in the home before knocking it down later down the track.“They’ve been in the area for generations, with their parents’ living nearby,” Mr Stefan said.“They said they will live in it for the next six or so years before knocking it down and building a big home on it.”last_img read more