UK local authority funds can divest tobacco shares, advisory board told

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first_imgLocal authority pension schemes in the UK could face successful demands for members for portfolios to drop tobacco company holdings, according to a legal opinion from a respected barrister.The Local Government Pension Scheme (LGPS) Shadow Scheme Advisory Board asked Nigel Giffin, a specialist in public law, to establish if the funds owed a fiduciary duty to its members and if wider functions, aims or objectives of the administering authority should impact the discharge of its LGPS investment duties.The LGPS Shadow Scheme Advisory Board, the pilot body for the new LGPS Advisory Board, was set up to encourage best practice, increase transparency and coordinate technical and standards issues among local government schemes.Giffin said that the administering authority of an LGPS fund has both fiduciary and public law duties. The fiduciary duties are both to the scheme employers and to the scheme members. He added that the administering authority’s power of investment needed to be exercised for investment purposes, and not for any wider purposes. Investment decisions must therefore be directed towards achieving a wide variety of suitable investments, and to do what was best for the financial position of the fund, balancing risk and return in the normal way.“So long as that remains true,” the advice continued, “the precise choice of investment may be influenced by wider social, ethical or environmental considerations, so long as that does not risk material financial detriment to the fund.“In taking account of any such considerations, the administering authority may not prefer its own particular interests to those of other scheme employers, and should not seek to impose its particular views where those would not be widely shared by scheme employers and members.“Nor may other scheme employers impose their views upon the administering authority,” he added.The LGPS Advisory Board said this opinion could also apply to social housing, for example.It said: “An administering authority may take account of social housing needs but only if an investment in this kind of asset stands up as an investment in its own right and can demonstrate that it is not preferring its own interests over other scheme employers in making the investment.”Among local authorities, the Newham Pension Fund has already removed tobacco from its portfolio.Catherine Howarth, chief executive of lobby group ShareAction, said: “This will help members of the LGPS who have ethical objections to investing in tobacco stocks, in proposing that their funds look for alternatives to tobacco that deliver the same long-term investment returns.”She said ShareAction would be making contact with scheme members’ groups which have been campaigning for the pension funds to disinvest from tobacco.In particular, she expected the recent influx of health workers into the LGPS following a restructuring of the National Health Service to continue acting as a catalyst for change.The Local Government Association, which commissioned the opinion on behalf of the shadow board, added that it welcomed the advice. “It makes clear that, while the administering authority’s power of investment must be used to get the best returns, wider social, ethical or environmental considerations can be taken into account – providing any replacement assets achieve similar returns.“It has confirmed our view that these are decisions best taken locally,” it added. “No one stakeholder group can impose its view on another when it comes to deciding how assets are best invested in individual pension funds.”last_img read more

Wednesday people roundup [updated]

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first_imgMN, Nationale Nederlanden, Mercer, Fidelity Worldwide Investments, Legal & General Investment Management, JP Morgan Asset Management, Santander Asset Management, Bradesco Asset Management, Russell Investments, Norges Bank Investment Management, BlueBay Asset Management, First Investments, BNP Paribas Securities Services, Affiliated Managers Group, Ashmore Group, Aviva Investors, Artemis, Hermes Investment Management, Tikehau CapitalMN – The €110bn asset manager and pensions provider has named Henri den Boer as director of pensions. Until last year, Den Boer served as chief executive and commercial director of corporate clients at Dutch insurer Nationale Nederlanden. He has also been chairman of the supervisory board at pensions provider and NN subsidiary AZL. According to René van de Kieft, chief executive at MN, Den Boer will play a “crucial role” in pensions reform at the company. He joins in August.Mercer – Magnus Schmagold has been named head of sales for the consultancy’s investment solutions team in Germany, Austria and Switzerland. Schmagold joins from Fidelity Worldwide Investments, where he was director for pension and investment solutions. He joined the company in 2008.Legal & General Investment Management – Paul Sweeting has been appointed head of research within LGIM’s Solutions Group. He joins from JP Morgan Asset Management, where he was European head of the Strategy Group. Before then, he was a professor of Actuarial Science at the University of Kent. Santander Asset Management – Ileana Salas has been appointed global head of institutional sales. She joins from Bradesco Asset Management, where she served as head of business development and sales for Europe and the Middle East. Before then, she held senior business development roles at ABN Amro, Gartmore Investment Management and Schroders. Russell Investments – Van Luu has been appointed head of currency and fixed income strategy. He joins from Norges Bank Investment Management, where he was a senior analyst for investment policy and allocation strategies. Before then, he spent three years on the strategy team at Russell Investments.BlueBay Asset Management – The fixed income manager has appointed Soumyanshu Bhattacharya as institutional portfolio manager for the emerging markets sovereign team. Bhattacharya joins from JP Morgan Asset Management, where he was a client portfolio manager in the EM debt team. Before then, he worked at Deutsche Bank in the debt capital markets origination team.First Investments – Eric Pouwels has been appointed director of institutional relations at the €1bn Dutch asset manager. Pouwels will be responsible for expanding the company’s client base and maintaining relations with its existing clients. He joins from BNP Paribas Securities Services, where he was head of client development.Affiliated Managers Group – Robert Bee has been appointed director and head of distribution for the UK. He joins from Ashmore Group, where he oversaw new UK institutional business. Before then, he spent eight years at Schroders, latterly as head of UK and Ireland institutional business development.Aviva Investors – Giles Parkinson has been appointed as a global equities fund manager. He joins from Artemis, where he served as an analyst and fund manager. Before then, he was an oil and gas analyst at Newton Investment Management.Hermes Investment Management – Patrick Marshall has been appointed head of private debt and CLOs. He joins from Tikehau Capital, where he was responsible for developing direct lending activities in London and setting up a CLO program for Tikehau as first time issuer.last_img read more

ABP breaks ranks with peers in accepting high private equity fees

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first_imgThe larger pension funds in the Netherlands have come under pressure from the public to rein in costs for investments in non-listed companies, while the high bonuses received by private equity managers have also drawn fire.PFZW, the €166bn pension fund for the healthcare sector, and its asset manager PGGM have made clear their aim to cut private equity fees at all costs.PGGM has even established a 15-strong private equity team for this purpose.Last year, ABP paid more than €500m in bonuses to private equity managers.Erik van Houwelingen, a board member at ABP, conceded that the issue of bonuses was “difficult” for the pension fund as well.“But, as long the fees are linked to pension-enhancing performance, I can justify these costs,” he told the FD. Over the course of 2014, ABP’s 5.1% private equity allocation returned 23.3%.Over the last 10 years, the asset class has returned 14.9% on average for the scheme, while equity has returned 7.3% on average. Van Gelderen stressed that APG was not thinking to manage private equity investments on its own, “as this would require expertise we don’t have”.He added, however, that the asset manager took pains to reduce private equity costs through manager selection and co-investments.In other news, ABP has divested from Netherlands-based Mylan after engagement with the pharmaceutical company – over the use of Rocuronium Bromide for capital punishment in the US – proved “unsuccessful”. Van Houwelingen said Mylan refused to take steps to prevent its muscle relaxant from being used in executions.In a statement, Mylan said its products were meant to be used “in compliance with approved labelling and applicable care standards”.It said it did not directly supply the drug to prisons and that it had “no knowledge of its use for lethal injections”.The Dutch Ministry of Foreign Affairs, however, said it had shown Mylan pictures – obtained by UK human rights organisation Reprieve – from the Virginia Department of Corrections showing that the department was stocking the disputed drug.The US state still carries out the death penalty. ABP, the €356bn pension fund for Dutch civil servants, has broken ranks with other large pension funds in the Netherlands after suggesting it has accepted the relatively high fees associated with private equity. Eduard van Gelderen, CIO at ABP asset manager APG, said the pension fund had resigned itself to paying higher fees for exposure to the asset class.“A small number of successful private equity managers are in a position to demand high fees,” he told Dutch financial news daily Het Financieele Dagblad (FD).“If we don’t pay those fees, they don’t invest our assets. So, either we must fully withdraw from the asset class – and miss out on the returns as a consequence – or we must accept the cost level.”last_img read more

Wellcome, Goldman Sachs join forces on student housing venture

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first_imgiQ and Prodigy Living will continue to operate under their respective brands, and the company will be based in London.Wellcome’s investment portfolio was worth £18.3bn (€24bn) at end-September 2015, according to its year-end accounts.Property and property-backed assets have now reached £2.6bn, a record 12.9% of the portfolio.Half of this is in residential property, which returned 11.1% over the 12 months to end-September 2015.Peter Pereira Gray, managing director of the investment division at Wellcome Trust, said: “The Wellcome Trust is a long-term investor in the UK student accommodation sector. We are delighted to partner with Goldman Sachs and Greystar to form Vero Group, which will build on the success of the iQ and Prodigy Living businesses.”He added: “We now have the scale and resources required to meet the highest expectations of student and university customers alike through our ongoing investment in the existing portfolio, by attracting, retaining and motivating the highest-calibre employees, and by pursing further growth opportunities. We look forward to making Vero Group a leading operator in the sector.” The Wellcome Trust – the UK’s biggest charity – has formed a new UK student housing company with Goldman Sachs and Greystar, the US-based property management firm.The joint venture, Vero Group, sees Wellcome’s existing student accommodation arm iQ merged with Prodigy Living, owned by Goldman Sachs and Greystar. The new company aims to provide high-quality, value-for-money accommodation to residents and university partners through its portfolio of 23,500 beds across 54 sites in the UK.It plans to expand and modernise its portfolio, while delivering robust financial performance.last_img read more

PRI in Person: The ongoing allure of the SDGs

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first_img“Sextant for the investor community”. “A gift from the UN to the world”. “A global to do list”. “A moral imperative but also an economic necessity”.It has been evident for some time already that the UN Sustainable Development Goals (SDGs) have captured the imagination of institutional investors, and this was underscored at a conference of the Principles for Responsible Investment (PRI) in Berlin this week.As well as recurring references throughout the event, the dedicated SDG panel featured a number of major globally recognised asset owners such as CalPERS from the US, ABP from the Netherlands, and Cbus, one of Australia’s largest superannuation funds.CalPERS’ investment director for sustainability, Anne Simpson, argued that the goals were not only “a moral imperative, but also an economic necessity”, while Cbus’ Alexandra West, portfolio head for strategy and innovation, said that realising the SDGs would ensure a sustainable economy, and hence economic growth. In Europe, Dutch pension fund managers APG and PGGM are arguably the forerunners when it comes to applying the SDGs. Earlier this year, they presented an SDG “taxonomy ”, the fruit of their work to assess the investability of the goals.Speaking at the PRI in Person conference, Jose Meijer, vice chair of the board of ABP (APG’s main client) said the SDGs were “a gift from the UN to the world”.They were an excellent fit for ABP, and would shape the world its beneficiaries live in, or want to live in, she added.Inspired by the Dutch pension investors’ work, CalPERS has been mapping the SDGs to its portfolio and found “a strong degree of connectivity”, said Simpson.She said what was missing was the means to measure impact, but indicated this was not yet a major concern.“Necessity is the mother of invention,” she said.There was a clear consensus among the panellists that the SDGs were a positive and useful framework for their pension funds, but Cbus’ West highlighted that integrating the goals into the fund’s investment approach was a challenging task.“It’s very difficult to come up with an investment strategy based on the SDGs,” she said. Indeed, shortly after the panel discussion, a representative of a French pension fund told IPE they wanted to align their approach with the SDGs, but were finding this difficult to do.Conversations on the sidelines of the conference revealed a slightly more reserved stance on the SDGs than that expressed by the panellists.  A representative from an Antipodean pension fund, for example, said it would feel “disingenuous” to somehow retrospectively map the goals onto a fund’s portfolio and investment strategy.The head of ESG at a UK-based asset manager, meanwhile, expressed concern that investors as well corporates were “latching on” to the SDGs too quickly.last_img read more

People moves: ATP appoints real estate CFO; Janus poaches USS manager [updated]

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first_imgJanus Henderson Investors – The fund management group has hired Andrew McCarthy from the Universities Superannuation Scheme (USS) to join its European equities team in London. He will join in July as co-manager on the firm’s long-only funds and mandates alongside John Bennett, head of European equities. At USS’s investment arm, McCarthy specialised in the industrial and consumer sectors. APG – The €475bn asset manager and pensions provider has appointed Ronald Wuijster as member of its executive board, responsible for the asset management portfolio as well as advising on the implementation of investment policy for APG’s pension fund clients, which include the €409bn civil service scheme ABP. Wuijster also chairs the board of APG Asset Management.Since he joined APG in 2006, Wuijster has held roles including managing director of strategic portfolio management and CIO. Prior to this, he held various managing directorships at asset manager Robeco. ATP Real Estate, LPFA, Janus Henderson, APG, Ontario Teachers’, PFA, State Street, PLSA, TKP, PDN, Syntrus Achmea, BMO GAM, Carbon Tracker Initiative, Montae, Aspect CapitalATP Real Estate – Martin Vang Hansen has been hired by Danish pensions giant ATP’s property subsidiary, ATP Real Estate, in the newly-created role of chief financial officer. He will start the Copenhagen-based job on 1 May. Vang Hansen is currently chief executive of the Færch Foundation, a foundation set up by members of Denmark’s wealthy Færch family.London Pensions Fund Authority – The £5.3bn (€6.1bn) public sector fund has appointed Robert Branagh as managing director, responsible for managing relationships with the scheme’s key stakeholders. He replaces Mike Allen, who is retiring after working at LPFA since it was established in 1990.Branagh is the current president of the Pensions Management Institute and has worked in both public and private sector pensions over the past 30 years. Bjarne Graven LarsenOntario Teachers’ Pension Plan – Bjarne Graven Larsen, chief investment officer at the CAD189.5bn (€120.9bn) Ontario Teachers’ Pension Plan, has resigned after two years in the post, the Canadian scheme said in a statement. Ron Mock, OTPP’s chief executive, will act as interim CIO during the process to find a replacement. Graven Larsen – former CIO of ATP – planned to move back to Denmark with his family, according to Ontario.PFA – Kenneth Graversen has taken up a new job at Denmark’s PFA as senior portfolio manager for global equities. He previously worked at SEB Asset Management as chief portfolio manager and CIO for Danish equities. At PFA, Graversen reports to chief portfolio manager Klaus Ørtoft Madsen and Henrik Nøhr Poulsen, CIO for equities and alternatives. State Street – The financial services giant has appointed Sara Mathew and William Meaney to its board of directors. Mathew is a former chair and CEO of analytics and ratings firm Dun & Bradstreet, where she also held roles including president and chief operating officer. She has board-level experience across a number of sectors.Meaney is the president and CEO of storage company Iron Mountain. He was previously CEO of multi-industry conglomerate Zuellig Group, and has held a number of senior roles at major airline companies.Jay Hooley, chairman and CEO of State Street, said: “Technology, data and analytics are driving our ability to strengthen client service and solutions, and improve efficiency and productivity. Sara and Bill’s collective knowledge of finance and technology, as well as their shared experience leading transformational change within large corporations, will bring great value to our board.”Pensions and Lifetime Savings Association – Luke Hildyard has left the UK pension fund assocation to return to the High Pay Centre, a think tank. Hildyard was deputy director at the High Pay Centre before leaving to join the PLSA in late 2015. As of today he is back at the think tank, this time taking over the role of director from Stefan Stern, who has stepped down. At the PLSA, Hildyard was policy lead for stewardship and corporate governance. TKP Pensioen – Doekle Terpstra has been named as independent chairman of the supervisory board (RvC) of pensions provider and Aegon subsidiary TKP Pensioen. He is to succeed Maarten Edixhoven, chief executive of Aegon, who is to stay on as member of the RvC. Terpstra has previously worked as chairman of the HBO-Raad, the council for higher professional training, and as chairman of trade union CNV.PDN – Hans van Suijdam has been appointed as temporary trustee and chairman of PDN, the €7bn pension fund of Dutch chemical giant DSM. Van Suijdam is a former executive vice president of DSM and former chair of the company pension fund GistBrocades, which has liquidated. At PDN, he succeeds Atzo Nicolaï, who has stepped down but will stay on as board member.Ortec Finance – The consultancy and technology provider has hired Deon Dreyer as UK managing director. He takes over from Lucas Vermeulen who has moved back to the Netherlands. Dreyer joins from Insight Investment where he was client director. He has also worked in consultancy roles at Quantum Advisory, PwC and Aon Hewitt.SAREF – Syntrus Achmea Real Estate & Finance has appointed Jos Sentel as strategy and research manager, responsible for the team focusing on translating trends, political developments and changes in the property and mortgages market into investment frameworks for institutional investors.Sentel previously ran ThirdPlace, an advisory bureau for real estate concepts, since 2006. Prior to this, he was director of research and concepts at ING Real Estate Development. Sentel succeeds Boris van der Gijp, who has been appointed director of commercial property at SAREF.BMO Global Asset Management – The $260bn (€211.9bn) asset manager has appointed Alice Evans and Claudia Wearmouth as co-heads of its governance and sustainable investment team. They will be responsible for integrating environmental, social and governance issues into the group’s investment processes.Evans joined BMO in 2010, having previously worked at Henderson Global Investors and JP Morgan Asset Management. Wearmouth joined in 2007 and has held a variety of responsible investment roles across BMO’s business.In addition, BMO GAM has hired Pieter van Stijn as a director in the governance and sustainable investment team, based in the Netherlands. He joins from PGGM where he worked for 11 years as a senior adviser on responsible investment matters.Carbon Tracker Initiative – Mark Lewis has been appointed head of research and managing director at the think tank. He has worked on the financial ramifications of climate change as a sell-side financial analyst, and his research to date has focused on the overlap between energy and climate change. He was most recently managing director and head of European utilities at Barclays, and has held roles at Kepler Cheuvreux and Deutsche Bank. He is a member of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures.  Montae – Menko Nieland has started as consultant for balance and risk management at Dutch pensions adviser Montae. He is tasked with supporting pension funds’ boards and investment committees. Nieland joined from pensions regulator De Nederlandsche Bank, where he was part of its on-site team for pension funds and insurers. Prior to this, he worked in actuarial roles at PwC Netherlands, Nationale Nederlanden and Deloitte.Aspect Capital – The $7.5bn systematic investment manager has promoted Rosie Reynolds to chief commercial officer. She is responsible for the company’s commercial strategy and the management of its business development team. She has worked for Aspect for 12 years, most recently as director of global business development.last_img read more

Alecta considers push for board overhaul at Swedbank

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first_imgAlecta CEO Magnus BillingMichael Kjeller, head of asset management and sustainability at Folksam said: “Even in an extreme scenario where the share price fell to zero, we can observe that Folksam Life and Folksam Sak would remain financially stable and not have any need to change their investment policies.”Swedbank shares are currently trading at around SEK130, having fallen some 26% from around SEK175 at the beginning of this week.Kjeller added that Folksam – the second-largest shareholder in the bank with a 7% stake – had secured a total return of almost SEK18bn from its investment in Swedbank since it became a major shareholder in 2008. Of this, about SEK7bn was realised profits passed on to its customers.At the AGM, the bank elected Kerstin Hermansson as a new supervisory board member. Hermansson has previously worked as managing director at the Swedish Securities Dealers’ Association, a trade body.Alecta’s Billing said: “It is good that the nomination committee continues to work on strengthening the board. The election of Kerstin Hermansson today was a first step.” Meanwhile, fellow pension provider Folksam attempted to reassure its customers that the rapid fall in the bank’s share price would not affect the fund’s stability. Sweden’s biggest pension fund could call for a completely new supervisory board to be appointed for troubled financial services group Swedbank to help deal with recent money-laundering allegations.The SEK878bn (€84.4bn) Alecta which holds around 5% of Swedbank’s shares, said it was dissatisfied with the action taken by the bank’s existing supervisory board in response to reports that billions of krona were laundered through branches of Swedbank and Danske Bank.Commenting after Swedbank’s annual general meeting (AGM) yesterday, in which shareholders discussed the bank’s handling of the money-laundering scandal, Alecta’s chief executive Magnus Billing said: “I do not rule out calling an extraordinary meeting in the near future to get a new board in place.”Just hours before yesterday’s AGM, the Swedbank supervisory board sacked chief executive Birgitte Bonnesen and appointed current chief financial officer Anders Karlsson as acting president and chief executive until a permanent replacement was found.last_img read more

Coal presence in climate funds ‘points to need for more ESG oversight’

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first_imgInfluenceMap analysed 118 funds marketed as free from fossil fuels or otherwise climate-relatedHowever, it also found 22 climate-themed funds exposed to fossil fuels. In addition, InfluenceMap said, the aggregate thermal coal intensity for the 118 funds was roughly equivalent to that of the iShares MSCI World exchange-traded fund.The think tank said its research pointed to the need for greater oversight of the climate-themed and broader ESG investment sector in relation to how funds and their impacts were marketed and described.“Efforts under way within the EU, including its taxonomy framework and application of the EU Ecolabel to financial products, aim to do just this,” said InfluenceMap.It also proposed the development of “a pathway for discerning and regulating the impact of these funds on the real economy and on actual emissions reductions, particularly as several pieces of research cited in this report indicate real world impact is a key motivator for investors in climate and ESG funds”. The organisation noted that many climate-themed funds remained invested in fossil fuel companies and pursued engagement with them in a bid to drive positive change in the world. Report ‘misses important nuances’: State StreetTwo of the funds covered by InfluenceMap’s analysis are State Street funds with “fossil fuel reserves free” in their name: SPDR MSCI EAFE Fossil Fuel Reserves Free ETF and SPDR MSCI Emerging Markets Fossil Fuel Reserves Free ETF.The think tank said they “contained fossil fuel reserves” through holdings in companies including energy corporate RWE and mining company Vale.According to Matthew Bartolini, head of SPDR America Research at State Street Global Advisors (SSGA), InfluenceMap’s report “misses some of the most important nuances in the nomenclature relating to addressing carbon in portfolios”.“As we continually perform range management and ensure that our solutions are fit for purpose, we continuously provide feedback to our partners on clients’ needs,” Bartolini said.“As a result, based on their own consultations, MSCI, the index provider, will implement changes to the MSCI ex Fossil Fuels indices as part of a November 2019 semi-annual index review that addresses some of the more stock-specific nuances of companies residing in a low-carbon industry.”Pure metallurgical coal companies would still not be excluded, however, Bartolini said, as this “reflects the current nomenclature and reinforces the nuances associated with ESG”.In its report, InfluenceMap said that the use of indices to construct climate-themed funds was likely to be “a significant driver of the presence of companies controlling fossil fuel reserves”. According to InfluenceMap, many asset managers selling climate funds “appear to have actively eliminated companies controlling fossil fuel reserves from their funds”.  The presence of companies with coal mining activity in climate-themed funds suggests the need for greater oversight of the environmental, social and corporate governance (ESG) fund sector, a climate change-focused non-profit organisation has argued. London-based InfluenceMap identified and analysed 118 climate-themed funds marketed to retail investors, examining the presence of what it referred to as “fossil fuel reserves” owned by companies held in the funds. The think tank said that, although fossil fuel companies were not necessarily barred from climate-themed funds for legal or other reasons, “it is reasonable to assume that purchasers of such funds would expect exposure to fossil fuel reserves within the funds to be minimised in line with the manner in which the funds are named and described in the fund marketing materials”.Policymakers in the EU were anticipating that such funds would both meet buyers’ expectations as well as “drive genuine impacts in the real economy”, it added.center_img Index provider MSCI is to make changes to its fossil fuel exclusion indices in November“It should be noted,” it added, “that most of the climate-themed funds connected to S&P and MSCI indices identified as containing fossil fuels are ‘optimised’ with respect to the method by which they track their affiliated index.“Given that the degree of input implied by ‘optimisation’ is variable, it is uncertain whether the inclusion of fossil fuel holdings in the index funds originates with the fund manager or the index provider.”Nathalie Wallace, global head of ESG investment strategy at SSGA, told IPE that in the financial world, fossil fuel reserves was understood as a reference to the oil and gas sector.“Thermal coal is embedded in our data providers under brown revenues, which includes all extractive industries that have a high pollution or high carbon emission output.”She added: “What we see is that everybody is looking at climate and asking what the funds are doing. If we only target one fund then you come to the conclusion that it’s not delivering on the promise to save the planet, but what we do is address different climate challenges with different products that respond to demand from clients.”Thomas O’Neill, co-founder and research director at InfluenceMap, said: “Coal is the single biggest contributor to climate change and investors and the public alike would reasonably expect that a fossil-free fund does not contain coal. “Our data shows that certain asset managers will need to greatly improve their climate offerings or risk losing the trust of increasingly engaged investors.”Earlier this week the European Commission approved an asset swap between RWE and E.ON that RWE said would make it “one of the world’s leading renewable energy companies”. It said it would focus primarily on electricity production based on renewables. The utility also mines coal in Germany.last_img read more

Delta Lloyd scheme splits matching holdings into LDI, spread portfolios

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first_imgThe Delta Lloyd Pensioenfonds said it will implement changes to its 25% return portfolio this year, including a reduction of its developed markets equity investments by one-third to 50% of its overall return portfolio.It will also raise its stake in emerging market equity as well as real estate to 16.7%, while introducing a portfolio for emerging market debt of a similar scale.Krekel explained that the portfolio changes followed the scheme abolishing its reinsured arrangements in 2017.It said that an asset-liability management (ALM) study – completed at year-end – had confirmed the portfolio changes underpinned a solid investment approach.The ALM also suggested the pension fund should reduce its investment risk at higher funding levels through increasing its liabilities portfolio at the expense of its return holdings.Last April, the pension fund’s coverage ratio stood at 125.2%, a decline of no more than 1.6 percentage points since year-end.Its funding level had enabled it to grant all its participants and pensioners a full inflation compensation of 1.73%, drawn on the consumer index. The €3.8bn pension fund of former Dutch insurer Delta Lloyd said it had split its matching portfolio into sub-portfolios for liability-driven investments (LDI) and “spreads”.In its annual report for 2019, it announced it had allocated two-fifths of its 75% matching portfolio to LDI holdings, including long-duration euro-denominated government bonds, interest swaps and cash.It said it had invested the remaining assets in Dutch residential mortgages, euro-denominated credit as well as corporate green bonds.According to Theo Krekel, the scheme’s chief executive officer, breaking up its liabilities portfolio would make management easier, as its spreads holdings could also be deployed to generate returns. Source: WikipediaThe former offices of Delta Lloyd in AmsterdamThe pension fund closed on 1 January 2020, following a new collective labour agreement (CAO) at NN Group.As part of the labour agreement, future pensions accrual of former Delta Lloyd staff will take place through NN’s CDC scheme.The board of the Delta Lloyd Pensioenfonds said it had concluded that keeping the scheme for now was the best of the currently available alternatives, which also included a buy-out and joining a consolidation vehicle or another scheme.The scheme said it will reassess its position in three-years time, but that it will keep monitoring its buy-out options in the meantime.It also said it is in discussions with its new pensions provider – NN subsidiary AZL – about switching its IT system Lifetime to a new platform.Whereas the scheme’s contract with AZL is to expire at the end of 2021, the provider wants to bring the change forward by one year, it said.The pension fund attributed its 19.8% return on investments largely to the performance of its equity holdings, which generated returns of 27.6%.The report disclosed that the scheme’s LDI portfolio, spread holdings and return portfolio had delivered 32.6%, 5.8% and 26.1%, respectively.The Delta Lloyd Pensioenfonds reported administration costs of €391 per participant.It spent 23bps on asset management and said a 5bps rise in transaction costs to 8bps was due to the reconstruction of its matching portfolio.The scheme has 2,365 active participants, 7,020 deferred members and 3,670 pensioners.To read the digital edition of IPE’s latest magazine click here.last_img read more

This Gold Coast mega mansion is unlike any other

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first_imgEven from the street it’s amazing! Cocktails by the pool, anyone? The perfect spot to curl up with a book.He brought his idea to life with the help of an architect and good friend Marshall Keen, who is known as “The Bondi Builder” on Channel 9’s Buying Blind series.“It took a bit over a year to build. The design didn’t take too long,” Mr Ridley said.He has been living in the Amalfi Drive property with his wife, Nicolette, and their two daughters since 2011.More from news02:37International architect Desmond Brooks selling luxury beach villa16 hours ago02:37Gold Coast property: Sovereign Islands mega mansion hits market with $16m price tag2 days agoAn older brick home stood on the property when they bought it in 2004 but the family quickly outgrew it. The daring black kitchen is a standout feature of the home. Enjoy dinner with a view.“We probably went a bit overboard with all the finishes and stuff like that,” Mr Ridley joked.“But it’s a great house – it’s an easy house to live in.”He said it would be sad to say goodbye to the home but he planned to travel with his family.“I know I can build another one like this again if I want,” Mr Ridley said.Nick McHutchinson and Michael Kollosche of Kollosche Prestige Agents are marketing the property. It’s both an indoor and outdoor wetbar. The city lights will be the first and last thing you see every day. You won’t need to waste money on going to the cinema. There’s plenty of space to study.The mansion that towers over the waterfront block today has five bedrooms, four bathrooms, a huge basement with media room, gym and space for eight cars, as well as a study, library and children’s retreat.The only piece of the old house that’s left is the street address sign at the property’s front gate.“It still looked pretty cool,” Mr Ridley said.The American walnut matt-black finished kitchen, infinity edge pool overlooking the water and Surfers Paradise skyline, wetbar and eight-person lift are among its standout features. Admire the city lights from the comfort of your home. Dream home!THE Gold Coast is renowned for its mega mansions but this one is in a league of its own.Concrete, glass and wood have been expertly blended to create a luxurious riverfront residence on the Isle of Capri.It is on offer to anyone with at least $5.4 million.Owner Paul Ridley, who is a concreter by trade, drew inspiration from various houses and buildings, including those of Japanese architect Tadao Ando, to design the multi-level home.last_img read more