Month: September 2020

Austrian roundup: FVPK, FMA, BKV, arithmetica

first_imgAustrian Pensionskassen have reported an average 3.2% return for the first nine months of 2013, a substantial gain on their average half-year performance of 0.86%.For the third quarter, the local pension fund association, FVPK, reported a 2.4% return.Andreas Zakostelsky, chairman at the FVPK, said he was optimistic about the results, as they showed Pensionskassen were able to weather short-term dips in the financial markets.Meanwhile, Austrian supervisory body FMA also released its official figures for the second quarter. It found that Austria’s 16 Pensionskassen returned -1.3% over the second quarter, bringing the half-year return to 0.9% – similar to the 0.86% reported by the FVPK over the summer.FMA figures also showed that almost 47% of the €16.5bn in pensions assets managed at the end of the second quarter was invested in bonds, and 28.3% in equities.The remainder was invested in cash, real estate and loans.After hedging, around 18.5% of assets was invested in foreign currencies.In other news, collective corporate pension scheme BKV saw assets increase by 1.4% quarter on quarter to €619.3m, as of the end of June.As part of a reform plan introduced earlier this year, BKV pensioners, as well as people close to retirement, have until the end of October to switch to an insurance-based scheme offering certain guarantees.The BKV is a competitor to the Pensionskassen’s own Sicherheitspension, or ‘safety pension’, which was also introduced by the reform.From January 2014, a new feature will be introduced into the Austrian pension system, the so-called Pensionskonto.Using the Pensionskonto, Austrians, similar to the Swedes, will now be able to learn how much of a pension they can expect from each pillar.Christoph Krischanitz, managing director at the actuarial consultancy arithmetica, said: “Until now, only pensioners got any information on their pension, but people still working did not.”He said he expected the new information would make the topic of pensions more “politically dynamic” and might lead to future shortages in the first pillar.last_img read more

Azerbaijan tenders Asian fixed income mandates using IPE-Quest

first_imgInterested companies should send documents via certified mail or electronic mail by no later than 1 April.The closing date for applications is 24 March.The IPE.com news team is unable to answer any further questions about IPE-Quest tender notices to protect the interests of clients conducting the search. To obtain information directly from IPE-Quest, please contact Jayna Vishram on +44 (0) 20 3465 9330 or email jayna.vishram@ipe-quest.com. The central bank of the Republic of Azerbaijan has announced an open tender to select external managers for its Asian fixed income mandates, using IPE-Quest.According to search QN1394, the tender is open for institutional asset managers with at least $300bn (€220bn) in total assets under management, as of 31 December 2013.Applicants must also have at least a three-year track record in the Asian fixed income market and currently manage assets for central banks or sovereign wealth funds.The size of the mandate has not yet been determined.last_img read more

Former Invensys fund chief joins Redington in senior role

first_imgSince leaving Invensys, he became CFO at BBOXX Group, a technology firm, before his latest move.David Bennett, head of investment consulting at Redington, said clients would benefit from Claessens’s experience heading up the Invensys fund.“As well as this, he has advised corporations and their schemes on all aspects of pension strategy,” he said.“These are exciting times at Redington, and we are delighted to be able to attract such outstanding talent to join the team.”Claessens is expected to join Redington in the coming weeks and will be based in London.Redington also recently announced former secretary of state for Work & Pensions Lord Hutton as an adviser.Hutton is now working with the firm’s consultants and asset-liability modeling teams on defined contribution solutions. Robin Claessens, former chief executive of the Invensys Pension Scheme, is set to join UK investment consultancy Redington in a managing director capacity.Claessens, who headed up the nearly £4.3bn (€5.2bn) pension fund until 2012, will join Redington as managing director in the investment consulting team.He joined Invensys in 2008, leading the fund as both CIO and chief executive for two years before hiring an investment officer.Claessens placed a strong focus on liability-driven investment (LDI) while managing the fund, a major theme for new employer Redington, which is known for advising on LDI solutions.last_img read more

​APG teams up with Xander on Indian offices joint venture

first_imgAPG is to invest in Indian commercial real estate with the Xander Group.The Dutch pension fund asset manager expects to invest as much as $500m (€360m) in India’s office sector, targeting existing properties with low levels of vacancy.Xander said the two companies were looking to capitalise on “continued strong tenant demand for office space”.The joint venture, with an initial $300m to invest, will focus income-generating, institutional-grade properties – ideally let to IT and financial firms in Mumbai, NCR, Bangalore, Hyderabad, Chennai and Pune. Sachin Doshi, APG head of non-listed real estate for Asia-Pacific, said that, despite a recent slowdown, India’s top six cities had consistently witnessed the largest net absorption of office space in the Asia-Pacific region.He said: “This, combined with limited new development starts for office projects in India, creates a unique demand/supply gap for good-quality office space that our venture aims to target.”Office space absorption is likely to increase by 7% this year, according to research by DTZ.The agent forecasts that 29m sqft will be sought by in India’s major cities.In its March report on India office demand and trends, DTZ also projected that office rentals would remain stable in most markets in the first half of 2014 and that rents would begin to rise in the second half of this year.Earlier this year, APG invested €35m in Indian hotel chain Lemon Tree, doubling its stake in the company to 13%.last_img read more

Norway’s Government Pension Fund Global reports first-quarter loss

first_imgGrande said falling interest rates in the quarter resulted in price gains on the fund’s fixed income investments.“However, lower interest rates have negative long-term implications for future returns on the fixed income portfolio,” he said.NBIM said the quarterly return on equities and fixed income undercut the benchmark indices by 0.2 percentage points.In a news conference, Grande explained this underperformance, saying it was due to the fact the GPFG’s bond holdings had a shorter duration than did the bond portfolio represented by the reference index.On the equity side, he said underperformance in the three-month period was due broadly to differences between exposure in the fund’s external asset manager portfolios and the reference portfolio.Differences between the fund’s exposure to the financial sector and that of the benchmark were particularly to blame for the underperformance, Grande said. During the quarter, the Norwegian government took money out of the GPFG for the first time.Rules around the fund allow the government to take up to 4% of the fund’s investment return every year.NBIM said the withdrawals amounted to NOK25bn in the first quarter.Inflows to the fund – formerly known as the oil fund – from the country’s petroleum activities revenue have diminished, largely due to the collapse of the oil price.The domestic currency’s strength on foreign exchanges in the first quarter, following a general weakening over the last two years, took its toll on the GPFG’s overall value.Krone appreciation decreased the value of the fund by NOK286bn between January and March, NBIM reported.At the end of March, the GPFG had a market value of NOK7.08bn, down from NOK7.47bn at the end of December 2015.The fund’s equity allocation slimmed in the first quarter to 59.8% of the total portfolio from 61.2% at the end of December.The fixed income allocation increased to 37% from 35.7%, while real estate held the same proportion at 3.1% of the fund. Norway’s giant sovereign wealth fund lost NOK85bn (€9.2bn), or 0.6%, in the first three months of this year, with investments in two of the fund’s three asset classes shrinking in overall value during the the period.According to its first-quarter report, the Government Pension Fund Global’s (GPFG) equity investments made a loss of 2.9% between January and March, fixed income assets a positive return of 3.3% and property investments a loss of 1.3%.Trond Grande, deputy chief executive at Norges Bank Investment Management (NBIM), which manages the fund, said: “The first two months of 2016 were characterised by high market volatility and concerns for a Chinese slowdown.”But the turbulence eased considerably in March, he said.last_img read more

Mandate roundup: PIC, Aon Retirement Plan, NN Investment Partners

first_imgThe Pension Insurance Corporation (PIC) has agreed a pension buy-in with the Aon Retirement Plan for £900m (€1.1bn), insuring the liabilities relating to the consultancy’s UK employees.The transaction, primarily funded with Gilts, covers most of the pensioner liabilities across two sections of the segregated plan.The buy-in is the third such deal between PIC and an Aon-sponsored scheme.In 2014 and 2012, it concluded two buy-ins with the Aon Minet Pension Scheme, for £210m and £100m, respectively. David Burton, independent chair of the scheme’s trustees, said: “We are very pleased to have been able to conclude this transaction at a time of considerable market volatility.“By securing this buy-in asset, we have taken a significant step in our long-term de-risking plan, following a smaller transaction with another insurer last December.”Matt Barnes, senior actuary at PIC, said: “We are proud to have been able to help the trustees of the Aon Retirement Plan with this significant de-risking exercise, highlighting the attractiveness of pension funds holding a buy-in as a matching asset in place of Gilts or other strategies.“This was the first sizeable pension insurance transaction under the new Solvency II regime, showing that large buy-ins priced under Solvency II remain an attractive option for trustees.”The lead adviser to the trustees was Aon Hewitt, with CMS Cameron McKenna providing legal advice.In other news, the €270m Dutch scheme Pensioenfonds Pon has appointed NN Investment Partners as its fiduciary manager.The multi-company scheme, with 11,000 former workers and pensioners, comprises two pension funds of Dutch VW importer Pon, building company Geveke and bicycle manufacturer Gazelle.The Gazelle scheme had already contracted out its fiduciary management to NN IP when it joined the multi-scheme in 2014.Bas Sprong, chairman at the Pensioenfonds Pon, said: “By choosing NN IP as fiduciary manager, we will achieve synergy benefits for all compartments of our pension fund.“We consider NN IP as an independent asset manager, which enables us to carry out a proper investment strategy and implementation. It has a good track record and provides tailor-made advice.”Last week, the €2bn sector scheme for public libraries, Bibliotheken, extended its fiduciary contract with NN IP for an indefinite period.The fiduciary manager also welcomed the €300m pension fund of merchant bank NIBC as a new client earlier this year.NN provides the NIBC scheme with strategic advice, liability-driven investment, operational balance management and management reporting.last_img read more

Dutch airline KLM wins case against pilot union over pensions indexation

first_imgAn Amsterdam court has ruled that Dutch airline KLM is under no obligation to plug a funding gap at its pension fund for pilots that would allow the scheme to grant full indexation.In summary proceedings brought by union VNV, the court decided that KLM’s expected additional contribution – estimated at €600m by the airline – was large enough for the company to cancel its agreement to meet a funding shortfall.The court also ruled that the agreement, terminated unilaterally by KLM, had not been covered by a binding collective labour agreement (CAO) between the employer and the pilots union.KLM had argued that it would have had to pay €600m by the end of this year as a consequence of the new financial assessment framework (nFTK), which increased the required funding level for full indexation from 105% to 122%. It said it could not afford to pay the additional premium, which the union estimated at €115m.The court said KLM  and the union could not have foreseen the financial effects of the nFTK when the pilot-scheme agreement was made in 2007.It also ruled that the four-month notice given by KLM had been sufficiently large, adding that VNV could have seen it coming.The court pointed out that planning for the nFTK had already begun in 2012, from which point the airline requested a new, more sustainable agreement.It did not, however, address the VNV’s argument that the pension fund reimbursed KLM €250m in the past.The union said it was now weighing its legal options.The €8.2bn Pensioenfonds Vliegend Personeel KLM, which also recently announced “legal steps” against the airline, declined to comment on its position.Last week, it said it would focus its case on KLM’s unilateral decision to cancel its contract for pension provision with the pension fund.It previously claimed that KLM lacked an important reason for terminating the contract and that the employer had given too short notice.It also argued that a premium reduction for KLM – agreed two years ago – could not be reconciled with the company’s decision to cancel its agreement.last_img read more

Six SWFs unite to address climate change issues

first_imgSix sovereign wealth funds governing $2trn (€1.7trn) have formed an alliance to address climate change issues.The group includes the Abu Dhabi Investment Authority, the Kuwait Investment Authority, the New Zealand Superannuation Fund, Norges Bank Investment Management (NBIM), the Public Investment Fund of the Kingdom of Saudi Arabia, and the Qatar Investment Authority.Together they have formed the One Planet Sovereign Wealth Fund Working Group to integrate financial risks and opportunities related to climate change in the management of large, long-term asset pools.The group’s objective is to develop an environmental, social and governance (ESG) framework to address climate change issues and contribute to long-term value creation. The aim is to publish an ESG framework as well as methods and indicators in 2018.A statement announcing the working group said it would be crucial in the years ahead for all parties to take urgent action to close the gap between current greenhouse gases emissions and a level on par with limiting global warming below 2°C.“There is growing evidence that institutional investors that prioritise ESG through ownership and investment are also well positioned to reap financial benefits – and that is the intention of this group,” the statement said.The group will assist other sovereign funds in exploring ESG frameworks specifically appropriate to their roles and characteristics.A common platform around the business risks of climate change and the opportunities of an increasingly lower carbon economy did not currently exist among sovereign funds, the group’s statement said.However, some funds had already taken the lead in advancing ESG issues, it added.Notable examples included understanding the impact of the transition to a low-carbon economy and the physical risks of climate change on financial markets.With assets under management projected to reach more than $15trn by 2020, sovereign funds were increasingly prominent in global financial markets, the statement said.Given their size and long-term investment horizons, they were uniquely positioned to promote long-term value creation and sustainable market outcomes as their future returns were intrinsically linked to global growth and prosperity.last_img read more

​Italian pension fund seeks up to 17 managers to run €4bn

first_imgItalian complementary pension fund Fon.Te has launched a tender process for up to 17 investment managers to take on five and 10-year mandates covering its total assets of some €4bn.The pension fund, which covers employees in the trade, tourism and service sectors, said in an announcement published yesterday that it was looking for managers for its four investment sub-funds, as well as a risk overlay manager.Fon.Te is searching for a maximum of two managers for the guaranteed sub-fund (comparto garantito); up to nine managers for the balanced sub-fund (comparto bilanciato); up to three managers for the growth sub-fund (comparto crescita); and a maximum of three managers for the dynamic sub-fund (comparto dinamico).The guaranteed sub-fund mandates – for a total of around €1.4bn of assets – are for 10 years, while the contracts are to run for five years, according to the announcement. Within the balanced sub-fund, Fon.Te is seeking:two specialist global government bond mandates of an estimated €223m each;one European corporate bond mandate of around €223m;one US corporate bond mandate also worth around €223m;a €290m global equities mandate; andthree global balanced mandates of around €350m each.Within the growth sub-fund, the pension fund intends to award two global balanced mandates of around €80m apiece, while the dynamic sub-fund is to involve two global balanced mandates worth an estimated €70m each.In addition, Fon.Te said it intended to evaluate awarding special risk overlay mandates to a single manager. There were to be three of these mandates, it said: one for the balanced sub-fund worth an estimated €70m; one for the growth sub-fund of around €6m and a third for the dynamic sub-fund worth about €5m.The deadline for questions about completing the questionnaire is noon on 3 July, and the deadline for technical documentation is noon on 9 July. More information is available on the scheme’s website (in Italian).last_img read more

Grand home on the river to go to auction

first_img14 Regatta Cres, DouglasThe five bedroom, four bathroom, three car home is on 814 sqm of land in a tranquil, river front setting.Keyes & Co Property owner Damien Keyes is marketing the property and said the house was the epitome of elegance.“It has real street presence and it has that big, circular drive and then there is the real statement staircase but inside it’s also very practical and has a really good family friendly layout,” he said. “There is guest quarters downstairs with your own bathroom and then upstairs you have the other three big bedrooms.“I think elegance is the best word for this house and it really has the wow factors as well s being a great entertainer’s home with a big kitchen in the heart of the home.”More from news01:21Buyer demand explodes in Townsville’s 2019 flood-affected suburbs12 Sep 202001:21‘Giant surge’ in new home sales lifts Townsville property market10 Sep 2020The home features architectural design with high-calibre finishes which will appeal to the top end of the market. 14 Regatta Cres, DouglasA GRAND home on the banks of the Ross River in the sought after suburb of Douglas will be Sold under the hammer.14 Regatta Crescent will go to auction on October 23 and is expected to draw interest from high-end house hunters wanting to buy into the tightly held pocket of properties along the river. 14 Regatta Cres, DouglasThe house is being sold for the first time with the owner moving.There is more than 500 sqm of under roof space.Mr Keyes said he had received interest from a range of buyers.“We’ve had a couple of families as well as some external interest from outside Townsville of people looking to move here,” he said.“When you’re promoting properties of this calibre you also get those high end buyers than tend to bounce between North Ward, Castle Hill and then the river along Douglas.”The master suite of the house has river and park views, a large and luxurious ensuite and walk-in wardrobe. 14 Regatta Cres, DouglasThere is also a home office on the ground floor, a formal theatre room on the second level with built-in speakers throughout the house and outside an in-ground swimming pool has direct access to a shower and toilet. 14 Regatta Cres will be open for inspection on Saturday from 11.15am to 11.45am and Monday 5.15pm to 5.45pm. For more information call Damien Keyes on 0418 781 421.last_img read more