The fund has now decided it needs to depart from its relative value management style, and instead begin working with an absolute return approach – even though most Italian pension funds have chosen not to take this route having earned well from benchmark investing in benign markets.“We want to encourage our managers to be more active in their investment style, to make sure they don’t just focus on beating the benchmark,” Marinig told IPE.Because Priamo’s current mandates expire in 2017, the pension fund will work on new manager searches during the course of next year. But, even before that, the board foresees changes happening to the portfolio as current mandates are altered to reflect the new asset allocation.This new model will involve a higher weighting of equities, with changes in geographical horizon and investment styles, according to Priamo. Fondo Pensione Priamo, the second-pillar fund for the Italian public transport industry, is on the verge of swapping its approach for an absolute return-led strategy as part of the new asset allocation it is putting in place to manage its high rate of maturity.Some 80% of the €1.19bn pension fund’s membership are bus drivers, and, according to their contracts, they can retire at the age of 60 for health reasons.Osvaldo Marinig, the pension fund’s chairman, told IPE’s ‘How We Run Our Money’ in the magazine’s December issue: “This particular characteristic of our fund prompted us to reflect on our investment strategy. The time horizon of the fund is reduced compared with other funds.”There are other challenging aspects too, he said, such as the high average age of members, which means more workers are expected to retire soon.
Month: September 2020
Varma, RobecoSAM, Vescore, PLSA, Standard Life, Unigestion, Schroder Investment Management, GAM, Generali Investments, Jetstone Asset Management, Rogge Global PartnersVarma – Pekka Piispanen, Casimir Lindholm and Eila Annala have been elected by the supervisory board of Finnish pensions insurance company Varma to the firm’s board of directors. Piispanen is a director of Akava, the Confederation of Unions for Professional and Managerial Staff in Finland, Lindholm is chief executive of construction firm Lemminkäinen, and Annala is managing director of healthcare service company PlusTerveys. Annala has been elected as a deputy member, while the other two are to be full members. The appointments will take effect on 1 January 2017, the day after board chair Berndt Brunow’s term ends. Board member Veli-Matti Töyrylä’s term will expire then, as will that of deputy board member Mikko Ketonen. Four other members and deputy members’ terms are also due to finish at the end of December, but they will remain on the board.RobecoSAM – Aris Prepoudis is joining the investment manager as chief executive from 1 January 2017, subject to its Swiss regulator’s approval. He will take over from Reto Schwager, who has been interim chief executive since August 2016. Schwager will continue to perform as global head of private equity and a member of the executive committee. Prepoudis was until recently the chief executive of Vescore (formerly Notenstein Asset Management) and before that head of the institutional client business unit at Notenstein Privatbank. PLSA – The UK’s Pensions and Lifetime Savings Association has appointed Jamie Jenkins, head of pensions strategy at Standard Life, to its Defined Contribution Council. Jenkins leads on strategy for Standard Life’s pension business and previously led its corporate pensions operation. He is a scheme trustee and sits on a number of regulatory and trade body councils and advisory groups. Unigestion – Miles O’Connor has been appointed chairman of the board of Unigestion UK, based in London. He was previously the head of UK institutional and head of EMEA institutional at Schroder Investment Management. He has also held senior management roles at Barclays Global Investors and was head of international business development at Bank of America/WorldInvest for six years.GAM – Gerald Saam has joined the asset manager’s institutional sales teams in Frankfurt, having previously been at Generali Investments Europe in Cologne for five years. Before that, he held institutional sale positions at Nomura Bank and Threadneedle Investments.Jetstone Asset Management – Igor Pikovsky has been appointed chief risk officer. He joins from Rogge Global Partners in London, where he was a senior partner and global head of risk. Before then, he worked at Credit Suisse First Boston and Morgan Stanley.
FTSE Russell is the data partner.The initiative aims to drive better public reporting by companies on climate change to help close a “data gap” that asset owners say impedes their ability to assess their exposure to risks and opportunities stemming from climate change and the fight against it. The tool also aims to be useful to asset owners’ engagement, both with companies and asset managers.A particular concern was for the tool to be designed to be useful to asset owners with relatively few resources or little expertise on climate change.Simon Dietz, co-director at the Grantham Research Institute on Climate Change and the Environment, said the toolkit was designed with ease of use and transparency “very much in mind”.Another important consideration in the development of the framework was for it to link to or build on existing initiatives or disclosure frameworks, such as that of the CDP and the framework proposed by the Financial Stability Board’s Task Force on Climate-related Financial Disclosures.At a launch event today, pension investors gave an indication of the tool’s use to them.Nadine Viel Lamare, head of sustainable value creation at Sweden’s AP1, said the AP funds wanted to invest in companies that were “fit for the future”, but that it was difficult to make well-informed decisions at the moment given a lack of information, or information being difficult to access.“In terms of carbon management, this tool will help us identify the companies that are ready, or maybe not future-proof but at least working in the right direction,” she said.“The tool fills an important information gap. We will predominantly use it for our investment decisions, but, of course, the tool is very handy for when we want to engage with the companies.”Liz Fernando, head of equities at the UK’s Universities Superannuation Scheme, made similar points, saying the TPI would give the scheme a tool “to assess management’s seriousness” on dealing with climate change and a way of measuring and monitoring management’s follow-through on their statements.“It will give us a better set of information on which to make decisions, and we think by having better information we will ultimately make better investment decisions and generate better investment returns,” she said. The initiative is initially focusing on companies in sectors that have the most impact on climate change and are the most exposed to the low-carbon transition, such as oil and gas, mining and electricity generation.The first set of data was released this month, representing the “Management Quality” assessments for 40 large companies in the oil and gas sector and the electricity utilities sector. Further assessments are due to be released in 2017.The TPI tool can be found here. An initiative of the investment bodies of the Church of England and the Environment Agency Pension Fund has launched an online tool designed to help asset owners better understand and address their exposure to risks and opportunities stemming from climate change.Launched today, the Transition Pathway Initiative (TPI) is also backed by Swedish AP funds, Denmark’s PKA and other asset owners and asset managers, with more than £2trn (€2.3trn) in assets under management.The core of the TPI is a publicly available online “toolkit” that relays how companies have been assessed with respect to the quality of their management of the greenhouse gas emissions associated with their business, and how companies’ planned or expected future “carbon performance” compares with maximum warming trajectories set out in the Paris Agreement on climate change.The Grantham Research Institute on Climate Change and the Environment, part of the London School of Economics, is the academic partner, developing the assessment framework and hosting the tool on its website.
The recent dramatic improvement was almost entirely due to the performance of the Warsaw Stock Exchange (WSE). Its benchmark WIG index grew by 18.1% over the 12 months to the end of March.Since Poland’s 2014 pension reforms, the OFEs have been banned from investing in sovereign bonds of any origin, turning them into de facto equity funds.The Polish brokerage house Trigon estimated that 85.2% of net OFE assets were invested in equities as of March, including 6.7% in foreign shares.Under the KNF’s methodology of counting the WSE’s dual-listed companies as non-Polish stocks, the foreign allocation was around 11%.As a result of the recent growth in investment returns, the OFEs total net asset portfolio grew by 16.8% year-on-year in local currency terms, to PLN167.6bn (€39.1bn).The growth compensated for net outflows from the funds generated by the “slider”, a mechanism that incrementally removes the assets of those with 10 years or fewer left to retirement to sub-accounts at the first-pillar Polish Social Insurance Institution (ZUS).In the first three months of 2017, according to Trigon, inflows from those members who chose to continue contributing to the second pillar totalled PLN786m against PLN1.0bn leaving under the slider.Meanwhile, the current high equity allocation has raised a dilemma for the planned dismantling of the second pillar scheduled for the start of 2018.Under the Capital Accumulation Programme, announced in July 2016 by finance and economic development minister Mateusz Morawiecki, 25% of all OFE assets would be transferred to the state-run Demographic Reserve Fund, which serves as a buffer for state pension shortfalls. The remainder would go to newly created and privately managed third-pillar accounts.Morawiecki has continually stressed that the programme did not constitute nationalisation of companies, as the 25% of liquidated OFE portfolios would come from other liquid assets such as deposits and bonds.Under the current investment structure, the OFEs would either be forced to sell off some of their shares, or the government would indeed end up being a significant investor in – and in some cases majority owner of – some of Poland’s leading listed companies.The publication of the legislation for the OFEs’ liquidation, initially set for the first quarter of 2017, is now expected by the end of June.One significant change announced since the programme was originally published is that the new third-pillar vehicles would be a variant of the individual pension insurance account (IKZE), not the individual retirement account (IKE), because both IKZE and OFE contributions are tax-deductible, whereas IKE contributions are not.The coming legal overhaul would have to include an amendment to allow savers to have more than one IKZE.According to the KNF, as of the end of 2016 some 643,100 individuals held IKZE accounts, with a total asset value of PLN1.1bn.The overhaul, with its emphasis on privately owned third-pillar accounts, would also require overturning an earlier Constitutional Tribunal ruling that the OFE assets, funded from a portion of social security contributions, were public monies. Poland’s weighted average 12-month second-pillar fund (OFE) returns soared to 17.6% as of the end of March, according to the Polish Financial Supervision Authority (KNF).The figure compares to an average 6.6% loss recorded a year ago.Of the 12 OFEs, MetLife generated the highest return – 19.5% – and Aegon the lowest, at 14.2%.Three-year average returns rose from 6.3% to 12.9%, while 10-year results edged up from 48.8% to 49.7%.
In his letter, the minister added that the minimum funding level required for schemes to grant full indexation would be increased by 2.7 percentage points to 126.9% as a consequence of the committee’s recommendations.Both the government and pensions supervisor De Nederlandsche Bank (DNB) endorsed the proposals.Ultimate forward rateThe UFR is designed to resemble long duration risk-free interest rates as closely as possible, as these rates are susceptible to shocks in market demand and supply.The committee recommended an extension to the first smoothing point of the UFR from 20 to 30 years, and to establish the UFR level as the 10-year moving average of the 30-year forward rate.It said it had refrained from adopting the UFR method used by European regulator EIOPA “as it was insufficiently linked to market data”.DNB will introduce the new UFR as of 1 January 2021. It said the new method would bring pension funds’ financial position “in line with the financial-economic reality”.The UFR is to decrease from 2.3% to 2.1% and would reduce pension funds’ advantage on liabilities, relative to market rates, from 2.7% to 0.3%.Return parametersThe Dijsselbloem committee also recommended reducing the maximum permitted figure for assumed future returns on listed equity by 1.2 percentage points to 5.8%, including costs of 0.2%.It decreased the parameter for other securities, including private equity, to 7.5%, including 1.9% of costs. For commodities, the committee proposed to limit return assumptions to 3.5%.It also advised using a 1.9% inflation assumption, drawn from the consumer index, as well as salary inflation of 2.3%.Pension funds must take these parameters into account when establishing contribution levels spread out over several years.The committee said it expected the new parameters to lead to a increase in pension contributions of at least 3%. The new parameters will come into force as of 1 January 2020.Sector commentsCommenting on the proposals, the Pensions Federation said it feared that the figures could upset trade union members, who were set to vote on pension reforms.Citing the “significantly negative impact on costs-covering contributions and coverage ratios”, Gerard Riemen, the trade body’s director, said it would have been better if the changes had been shared during recent negotiations regarding pensions reforms.Agnes Joseph, actuary at Achmea, warned that future cuts as a consequence of even stricter rules could undermine faith in the pensions system.However, the unions said the new parameters would not affect the core of the plan agreed with the government, highlighting that they had made a clear agreement about “results on the perspectives for indexation” as well as on “fairness for all generations”.“If this doesn’t materialise, the accord is off,” Tuur Elzinga, chief negotiator for the largest union FNV, told IPE’s Dutch sister publication Pensioen Pro.The metal and engineering sector schemes PME and PMT – which are most at risk of benefit cuts – said that the predicted funding drop of 2.5% would apply on average, and that they had to look into the exact impact of the changes. Their coverage ratios are hovering just above 100%. The chances of Dutch pension funds having to apply pension cuts have increased following a committee’s advice on adjusting the discount rate for liabilities and assumptions for future returns.The committee – chaired by former finance minister Jeroen Dijsselbloem – recommended adjusting the method for calculating the ultimate forward rate (UFR) as part of the discount rate, and reducing return parameters.In a letter to parliament, Wouter Koolmees, the minister for social affairs, said the UFR proposals would cause pension funds’ coverage ratio to drop by 2.5 percentage points on average.Koolmees recently agreed to a temporary reduction to the minimum required funding level from 104.2% to 100%, in order to reduce the chances of pension discounts during the implementation of pension reforms.
In 2011, when the contract was terminated, the Alcatel-Lucent Pensioenfonds had a funding shortfall.As part of the settlement, the sponsors paid the pension fund €9m in 2015, €5.7m in 2016 and €12.7m in 2017. Last year, the employers contributed €2.7m in recovery payments.In October 2015, the Alcatel-Lucent Pensioenfonds transferred its €700m of pension assets to PME, the €50bn sector scheme for metal-working and electro-technical engineering.At the time, its funding level was approximately 97.5%, whereas PME’s coverage ratio stood at approximately 100%.Since 2015, the Alcatel-Lucent scheme has been a pension fund without liabilities, largely responsible for transferring the sponsor’s contributions to PME.According to the pension fund, the last recovery payment is due in 2023, when its assets – currently €24m – will be used to pay inflation-linked compensation for its participants who transferred to PME.The amount of recovery payments in the coming years would depend on the development of interest rates as well as the coverage ratio of the metal industry scheme, the pension fund said.Assets held by the Alcatel-Lucent Pensioenfonds have been placed in savings accounts with banks.Future accrual for workers was outsourced to Blue Sky Group in 2012. Former telecoms firm Alcatel-Lucent’s Dutch pension fund is set to be in liquidation for another four years, according to the scheme’s annual report.Alcatel-Lucent Pensioenfonds is set to continue until 2023, despite the scheme being in liquidation since 2015, while the employer – Nokia Solutions and Networks Netherlands – makes a series of recovery payments.The payments follow a settlement between the pension fund and the employer in 2017, details of which haven’t been disclosed.The resolution followed several court cases, initiated by the scheme, seeking financial compensation for the sponsor’s decision to cancel the contract for pension provision with the pension fund.
The Merchant Navy Officers’ Pension Fund (MNOPF) is running wellbeing webinars aimed at helping retired members through the COVID-19 pandemic and global lockdowns by improving their physical and mental health.The defined benefit (DB) scheme has 25,000 members and some 350 participating employers.The live webinars, provided by Wellbeing People, are being run as 13 weekly sessions, which include topics such as coping with social distancing and self-isolation, resilience and mental fitness, nutrients versus calories, and easy exercise routines.E-mails were sent to 13,000 members for whom the scheme has e-mail addresses – largely in the UK, but also spread throughout the world. The messages invited them to sign up to the webinar series, and achieved a 68% opening rate – a “phenomenal response”, according to the pension fund. Rory Murphy, chair of MNOPFMurphy added: “The main tips for our members are, first, do not take dramatic action as a result of COVID-19, be aware of scams. Second, our fund is doing well and there is no need to worry. Thirdly, look after your wellbeing.”The scheme considers that the cost per head of those participating provides very good value.Murphy said he would like to see every pension fund following the MNOPF’s lead in providing wellbeing support for members.He said: “I want to see our members live as long and as healthily as they can, enjoying the fruits of their labours. As a pension fund, we have a part to play in that, because it is a people business and our members trust us.”Murphy said he would like to take the member support concept further, for example, by using MNOPF’s bulk-buying ability to provide discounts on financial products such as home and motor insurance.To read the digital edition of IPE’s latest magazine click here. At least 430 members have tuned in to each of the first two webinars, with an additional 730 viewing them afterwards. This proves there is a need for the service, according to Rory Murphy, chair of MNOPF, who also believes the programme is unique in the pensions industry.The idea originated with Murphy, whose trade union background had encouraged him to believe that pension funds should do more for their members than simply pay out a retirement income.Murphy said, “Our members are going to suffer during lockdown, physically and mentally. Retirees are not always able to cope with lockdown because they can’t go out and pursue their leisure interests.”Webinars are accessed by a simple link and each lasts one hour. Members can ask questions during each session via a chat function, and the most popular topics are answered later on the scheme’s website, which contains a video recording of the session.The members’ section on the pension fund website also contains the latest news relating to the MNOPF.
The master bedroom at 21 Whish St.A staggering 13 registered bidders were in attendance on the day, with Mr Jones saying the atmosphere was “damn amazing”.More from newsNew apartments released at idyllic retirement community Samford Grove Presented by Parks and wildlife the new lust-haves post coronavirus18 hours ago“Bidding opened quite high at $890,000, which was quite surprising as I thought it would have opened a bit lower, and there was pretty solid bidding from the beginning,” Mr Jones said. The home at 21 Whish St, Windsor was the most clicked in Queensland this week.THE top viewed auction property in Queensland on realestate.com.au this week sold in an auction McGrath Wilston agent Garry Jones labelled as “one of the best” of his career.The 21 Whish St home at Windsor garnered 138 groups of people through at inspections over three weeks, and two written offers prior to auction. Stairs lead down into the living room.It was a buyers agent’s technique of adding $500 to whatever the most recent bid was that snagged a local investor the property, with a winning bid of $960,500. The kitchen at 21 Whish St.Mr Jones said he sold the home to the vendors in 2009 and they had since undertaken a series of renovations.“They did the first round of renos in 2011 to the original cottage, stripping windows back to the original timber, upgrading bits and pieces and adding a new bathroom,” Mr Jones said.“In 2015 they had a friend who was an architect design the extension, which while all still on one level capitalises on the lovely northwest aspect.” Another one of the living rooms.Mr Jones said the family now had three children so they had outgrown the home but were “thrilled” with the result of the auction.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
275-277 Stanley St, Townsville City“They are so close to the city and so close to the Strand so you’re in walking distance to everything.“You could also renovate them instead of demolishing them because they are quite solid inside.”The homes are located in a character precinct so if they were demolished they would have to be rebuilt in the traditional Queenslander style. Both properties have had long-term tenants until recently, while 275 Stanley St is still rented for $225 a week. Each cottage has two bedrooms, a sleep-out and functional kitchen. Some rooms still have original timber floors. 275-277 Stanley St is open for inspection from 10am-10.30am and Wednesday 5pm-5.30pm. Call Malcolm Thomson on 0400 545 664. 275-277 Stanley St, Townsville CityTWO historic cottages positioned on prime on land on the fringes of the CBD will be sold under the hammer.On site, 275-277 Stanley St, Townsville, will go to auction on August 25 at 11am.The cottages are on 738sq m of land and have separate titles but will be sold together.Harcourts Kingsberry Townsville agent Malcolm Thomson said the two cottages offered endless possibilities for redevelopment and were located in a sought-after location.“Theoretically you could reconfigure the boundaries so you had two long boundaries,” he said,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 2020“Because one is on 180sq m and the other is on 558sq m you just wouldn’t sell them separately.
How to own 20 homes before you’re 30 Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 0:53Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:53 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD432p432p288p288p216p216pAutoA, 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 Rate1xFullscreenThe top 5 Love It or List It makeovers from season 100:54 Josh McGuire and the Brisbane Broncos were bundled out of final contention on September 9. Picture: Chris Hyde/Getty Images.ONE of the Broncos biggest stars has sold up in Brisbane just weeks after the troubled team was bundled out of NRL grand final contention.Josh McGuire, who debuted with the Broncos in 2009, had his “lavish hilltop haven with views right out to Moreton Bay” on the market for just two months before it sold. FOLLOW SOPHIE FOSTER ON TWITTER Photos show huge scale of Chris Hemsworth’s $9m mega-mansion Josh McGuire (right) of the Broncos is tackled by James Graham (left) of the Dragons during the elimination final between the Brisbane Broncos and the St George-Illawarra Dragons in Week 1 of the NRL Finals Series at Suncorp Stadium in early September. Picture: AAP Image/Darren England. Josh McGuire has found a buyer for his stunning Brisbane family home.The property was listed as being on a huge 2000 sqm block in an exclusive estate in Cashmere.McGuire had planned to put in an inground swimming pool and adjoining pool house “but they’ve decided to relocate before they commenced this project”. The home has good privacy.“One of the first things you’ll notice as you set foot on the property is that the block is quite usable and in addition to the remote double lockup garage, there’s ample space to store extra cars, trailers and even boats and caravans,” the listing said. The home is on a huge 2000 sqm block. The yard is tiered into usable spaces.It also has two water tanks that irrigate the tiered yard which was fenced for dogs, a solar system, ducted airconditioning systems, security alarm and loads of storage.“One of the great aspects of this home is that you feel like you don’t really have any neighbours — no-one is looking in on you so your privacy is maintained.” He and wife Tanyssa had bought the property three and a half year ago and initially wanted offers above $850,000. They accepted an off of $830,000 on Monday, according to CoreLogic records. Australia’s most expensive home sold More from newsParks and wildlife the new lust-haves post coronavirus16 hours agoNoosa’s best beachfront penthouse is about to hit the market16 hours agoJosh McGuire’s wife Tanyssa with their kids Maiya and Maxon at their home earlier this year. Picture: AAP Image/Josh Woning.