Dutch pension fund BpfBouw to expand into local real estate

first_imgBpfBouw, the €40bn pension fund for the Dutch building industry, is planning to increase its investments in Dutch real estate to €6.6bn, having already allocated €500m for new developments. It is also considering investing in property in the care sector, according to its 2013 annual report.Last year, nearly 20% of BpfBouw’s entire portfolio was invested in the Netherlands, and more than half of that was in property.The pension fund expected the extension of its local property holdings would generate stable returns of 3.5%. The scheme said it largely continued to stick with its investment mix of 15.3% real estate, 33.3% equity and 40.5% fixed income.However, the board has decided to set the allocation to private equity, commodities and hedge funds – last year 2.6%, 4.1% and 3.7%, respectively – at 4% each.To reduce its equity risk, it also increased its allocation to low-volatility equity in developed markets from 10% to 25%.BpfBouw started investing in sustainable energy and responsible nature and forestry conservation through ‘green bonds’.The building scheme reported a return on investments of 4.8%.However, this result was halved, following a 3.8% loss on the 66% interest hedge on its liabilities due to rising interest rates, it said.Developed market equity, with a return of 20.4%, was BpfBouw’s best performing investment.By contrast, the scheme incurred a 6.5% loss on emerging market equities.It also lost 1% on its fixed income portfolio, with government bonds, credit and inflation-linked bonds delivering 0.1%, -1.6% and -4.1%, respectively.The scheme’s combined property holdings returned 1.6%, but its stake in global real estate produced 7%, it said.BpfBouw attributed the 16.6% private equity return to the maturing of the portfolio.However, the return on hedge funds did not exceed 0.1%, with Funded Asset Management generating a 3.3% loss.As a consequence, the scheme’s board decided to divest its FAA portfolio gradually.The pension fund said it spent €107 per participant on administration costs last year, adding that asset management and transactions cost 58 and 14 basis points of its asset under management, respectively.BpfBouw has almost 806,000 participants in total, affiliated with 11,620 employers.last_img read more

Lichtenberger leaves Commission’s pensions unit after seven years

first_imgJung-Duk Lichtenberger, co-author of the White Paper on Pensions, is to leave the European Commission’s insurance and pensions unit after seven years.Lichtenberger will remain within the Directorate-General for Financial Stability, Financial Services and Capital Markets Union (DG FISMA), overseen by commissioner Jonathan Hill, but take over the currently vacant post of deputy head of the Capital Markets Union (CMU) unit.In an internal email seen by IPE, Lichtenberger said: “After having worked for more than seven years on developing the Single Market for pension funds, it is my time to move on. I look forward to staying in touch and to continue working on exciting projects.”Lichtenberger will move to the unit responsible for the development of the CMU next week. He will report to CMU unit head Niall Bohan, who was in charge of the asset management division within the now-defunct Directorate-General for Internal Market and Services (DG MARKT) during José Manuel Barroso’s presidency.Bohan moved to take charge of the new unit when the CMU policy was unveiled in 2014 by current president Jean-Claude Juncker.Although the CMU unit will be a departure from pensions, it is still likely to deal with pension matters, as Hill previously identified the “underdeveloped” nature of the personal pensions market as a hurdle to the project’s success.To that end, the European Insurance and Occupational Pensions Authority this week published a consultation on a new pan-European personal pension regime.Prior to joining the Commission, Lichtenberger worked for the European Central Bank, writing research papers for the institution.He studied at the University of Hull and the University of Warwick, both in the UK, and the Ecole Supérieure de Commerce de Reims in France.During his time at DG MARKT, he authored the 2012 White Paper on Pensions and was more recently involved in the revised version of the IORP Directive.At the time, the White Paper backed the idea of a level playing field between insurers and pension funds.Lichtenberger has since seemingly distanced himself from the idea, telling a conference earlier this year that there were “no plans to introduce Solvency II [for pension funds] through the back-door”, casting doubt on Hill’s returning to the matter in the foreseeable future after it was abandoned by predecessor Michel Barnier in 2013.last_img read more

ATP blacklists companies for links to cluster bombs, mines

first_imgIt also added Russian manufacturer Motovilikha Plants JSC, Chinese firm Norinco and South Korean weapons and machine tools maker S&T Dynamics to the list.According to details on ATP’s exclusion list, S&T Dynamics is being excluded because of anti-personnel mine manufacture, whereas the other six corporates were added because of cluster bombs.The exclusion list now contains 28 companies.Cluster bombs work by ejecting smaller bombs over a wide area mid-flight and because of this are said to be dangerous for civilians – both during attacks and for a long time afterwards, as many remain unexploded for some time.Their use is prohibited by countries that have ratified the 2008 Convention on Cluster Munitions.According to Dutch peace campaign group PAX, cluster bombs have been used in the past decade in Iraq, Lebanon, Israel, Georgia, Cambodia, Libya, South Sudan, Ukraine and Syria — where they are still being used. Denmark’s DKK700bn (€66.6bn) labour-market supplementary pension fund ATP has added seven stocks to the list of companies it will not invest in on social responsibility grounds, with most of the newly blacklisted firms found to be involved in making cluster bombs.ATP said it added the seven companies to its exclusion list even though the pension fund did not actually invest in them.“The companies are either directly or indirectly involved in the production of weapons that contravene conventions,” it said.ATP said it was blacklisting Romanian military aerospace technology manufacturer Aeroteh, Israeli weapons and auto components manufacturer Ashot Ashkelon, China Aerospace International Holdings – the Hong Kong subsidiary of China’s main satellite developer China Aerospace Science and Technology Corporation – and China Spacesat.last_img read more

Swedish buffer fund AP4 names former AP3 CIO as chief executive

first_imgSource: AP4Niklas Ekvall, chief executive of AP4Sarah McPhee, AP4’s chair, said she felt “privileged” to have recruited Ekvall.“Niklas has a deep understanding of both asset management and the AP funds, and he is motivated in bringing AP4’s sustainability engagement to the next phase,” she said. “We are very happy Niklas will join us at AP4.”The chair also thanked Andersson for his “outstanding contribution” while at AP4, noting his advocacy for investment strategies focused on the long term and matters of sustainability, for which he was awarded the Outstanding Industry Contribution at the 2014 IPE Awards in Vienna.Andersson, who announced in March he would be stepping down, will leave the buffer fund in June, with Per Colleen, AP4’s head of equities, acting as interim chief executive until Ekvall’s arrival. Ekvall worked at AP3 until 2004, leaving it to join Carnegie Asset Management.After three years as head of asset management at Carnegie, he joined Nordea Bank’s Swedish business as head of investment in savings and asset management, most recently serving as the bank’s head of group treasury. Niklas Ekvall has been named chief executive of AP4, succeeding Mats Andersson, who is stepping down after a decade in the role.Ekvall (pictured), who will join the SEK310bn (€33.2bn) Swedish buffer fund at the beginning of October, has held senior positions across the finance industry and academia, having taught finance at the Stockholm School of Economics.The incoming chief executive, who spent five years as deputy chief executive and CIO of AP3, said the AP funds had one of the most important roles in the Swedish financial sector.“I am really proud to be given this opportunity to be part of AP4 and to further develop an organisation that has been so successful in managing capital,” he said.last_img read more

Friday people roundup

first_imgTPT Retirement Solutions, Alecta, AMF, Legal & General, AXA, Association of British Insurers, Polar Capital, BlueBay Asset Management, BTIG, Lombard Odier, SEBTPT Retirement Solutions – The multi-employer pension fund, previously known as The Pensions Trust, has created a new two-tier board structure. A new management board has been added, reporting to the trustee board, following a “comprehensive review”.“This new governance structure is designed to improve and speed up decision making, by having professional non-executive directors on the management board with investment, funding and risk management skills,” TPT said in a statement.David Robertson is chair of the new management board, and is joined by TPT chief executive Mike Ramsey. The three new members are Mike Balfour, former chief executive of Thomas Miller Investment, Richard Coates, formerly of KPMG, and Wendy Mayall, former chief investment officer of Liverpool Victoria. Sarah Smart continues as trustee board chair, a role she has held since 2010. Robertson and Ramsey are co-opted directors on the trustee board. There are three employer-nominated directors – Elizabeth Garner, Colin Small, and Jonathan Wheeler – and three member-nominated directors: Frank Shore, Maggie Rodger, and Richard Stroud. Alecta – Anders Munk has been appointed as the new chief actuary at Sweden’s Alecta. He comes to the company from his role as chief actuary at AMF, and before that, was chief actuary at KPA Pension.Legal & General – The insurance and investment giant has made two appointments to its pension risk transfer business. Chris DeMarco has transferred from Legal & General Investment Management (LGIM) where he was head of institutional client management. He takes over as managing director of UK pension risk transfer. Costas Yiasoumi has been appointed head of core business, having previously led the bulk annuities operations at Partnership Assurance. Kerrigan Procter, managing director of Legal & General, said defined benefit pension schemes were “increasingly focused on transferring their risk to insurers”, adding that the new appointments would “result in many more market leading and innovative transactions being completed over the coming months and years”.Legal & General Investment Management – LGIM has hired Anna Troup and Mehdi Guissi for its solutions group. Troup joins from BlueBay Asset Management as head of UK bespoke solutions, while Guissi joins from Lombard Odier and is LGIM’s new head of European bespoke solutions. The solutions group designs multi-asset portfolios for defined benefit, defined contribution, and insurance funds.AXA Global Asset Management – CEO Véronique Weill is to leave the group “to pursue new professional challenges”. She has worked at AXA for 10 years. As well as CEO for the asset management arm, she is also chief customer officer and a member of the management committee for AXA Group. Paul Evans, CEO of AXA Global Life & Savings and Health, takes on Weill’s asset management responsibilities.Association of British Insurers (ABI) – Tom McPhail has been elected chair of a cross-industry group focusing on pension and investment transfers. McPhail is head of retirement policy at Hargreaves Lansdown, the UK’s leading investment fund broker, and a noted industry commentator.McPhail said: “With the demand for the volume of transfers and re-registrations set to increase in future, and ever increasing customer expectations around the timeliness and quality of switching, this is likely to become an increasingly important issue for pension and investment providers.”The group consists of staff from eight industry trade bodies: the ABI, the Association of Member-Directed Pension Schemes, the Association of Professional Financial Advisers, the British Bankers’ Association, the Investment Association (IA), the Tax Incentivised Savings Association, the UK Platform Group, and the Wealth Management Association. Its chief aim is to speed up and improve the process for individuals to transfer assets from one provider to another. The group is leading a consultation, open until 31 January, on how this process may be improved.Polar Capital – Tim Wooley is to step down as chief executive in the summer, with Gavin Rochussen joining in July as his successor. The UK investment boutique announced this week that Wooley will take a non-executive role on Polar Capital’s board when Rochussen joins. Rochussen was previously group CEO of JO Hambro Capital Management (JOHCM), but left the company at the end of last year after eight years. He oversaw JOHCM’s growth from £1.5bn of assets under management to £23.9bn.BlueBay Asset Management – Timothy Ash has joined the London-based asset manager as emerging markets senior sovereign strategist, a newly created role. Ash is to work with Graham Stock, who shares the same job title, and BlueBay’s analyst team. Ash joins from Nomura where he was head of CEEMEA credit strategy.BTIG – Michael Carley Jr has been appointed director of fixed income credit at the American financial broker and asset manager. He joins from investment bank Jefferies. Drew Doscher, managing director and head of fixed income credit at BTIG, said the firm would continue to grow the team. Lombard Odier – Annika Falkengren, CEO of SEB, is to join Lombard Odier as a managing partner in July. Denis Pittet has also been appointed managing partner this month, having worked for Lombard Odier for more than 20 years. At the same time, Anne-Marie de Weck is to retire from her managing partner position after 20 years at the group.last_img read more

AP2 creates ESG-led multi-factor equity indices for €10bn portfolio

first_imgAP2, the second of Sweden’s national pensions buffer funds, has created a pair of multi-factor indices to guide its internally-managed global equities investment, in a bid to improve returns and take more account of environmental, social and governance matters (ESG).Publishing its 2017 annual report, the pension fund reported a return on its total portfolio of 9.1% last year, compared to 10.5% in 2016. This excludes commission fees and operating expenses.Eva Halvarsson, chief executive of the Gothenburg-based pension fund, said the fund had been working “intensively” in the area of sustainability in 2017.“An important step in integrating sustainability as part of the investment decisions is that we have continued to implement ESG in the global equities asset class in our internal quantitative management,” she said. “During 2017, we designed two new so-called multi-factor indices where ESG is the most important factor for the weighting in the indices,” Halvarsson said.The indices are for AP2’s internally-managed global equities, which make up 29% of the overall portfolio, or SEK99bn (€10bn). One index is for developed markets equities and the other for emerging markets.To be introduced this year, they include all the factors AP2 seeks exposure to as well as ESG factors, and will replace the six indices the fund currently uses for this part of its portfolio.Claes Ekman, quantitative portfolio manager at the buffer fund, said: “Our new index has many benefits for today’s and tomorrow’s pensioners.“It has a better expected expected absolute and risk-adjusted return, lower costs and also takes ESG into account in the investment process to a higher degree,” he said in the annual report.Meanwhile, among asset classes, AP2 reported that Swedish equities generated an 11.3% return in 2017, while developed markets equities returned 10.7% and emerging markets equities gained 20.6%.Foreign government bonds and foreign corporate bonds lost 2.3% and 1.7%, respectively, while investments in Swedish bonds generated a return of 0.6%.Alternative investments, meanwhile, returned 9.5%, down from 2016’s 13.5%.The fund’s assets under management ended the year totalling SEK345.9bn, up from SEK324.5bn at the end of 2016.AP2 had net outflows of assets into the national pension system of SEK7.4bn last year, up from SEK6.6bn the year before.Halvarsson said that the pension fund had experienced increased costs in its supply chain in 2017, but that overall costs remained low despite this.“The way we deal with this is to manage more and more internally and continue to develop our activities in a cost-effective way,” she said.Operating expenses fell to 0.06% of asset management costs, AP2 reported, down from 0.07% the year before.last_img read more

Ircantec unveils oil and gas divestment and engagement plan

first_imgFrench public sector pension scheme Ircantec is to divest its equity and traditional bond holdings in specialised energy and non-European integrated oil and gas companies, citing climate change concerns.By the end of this year it plans to have divested from traditional corporate bonds issued by oil and gas companies, with the proceeds to be reallocated to green bonds.Ircantec, which is a mandatory public sector unfunded retirement scheme with €10.9bn of reserves, also plans to sell its equity holdings in specialised oil and gas companies and certain non-European integrated energy companies.According to Laetitia Tankwe, responsible investment adviser to Ircantec’s trustee board, the trustees took the view that specialised companies would not be able to adapt to a low-carbon energy transition and therefore only represented risks, rather than any potential for change. The scheme plans to divest its equity stakes in non-European integrated energy companies where these companies’ investment expenditure was not aligned with keeping global warming to within 2°C above pre-industrial levels.These companies often obtained poor environmental, social and corporate governance (ESG) scores and were more difficult for Ircantec to engage with, Tankwe said.Some €35m of bonds and around €51m of equity stakes were affected by the divestment decisions, according to Tankwe. The equity divestment would take place next year and the sale proceeds reinvested in sustainable funds.European majors get the engagement treatmentOver the next two years the scheme plans to recalculate its strategic asset allocation within the next two years with a view to being able to review its exposure to the oil and gas sector based on its alignment with a 2°C warming trajectory.This study, said Tankwe, would allow Ircantec to decide on whether and how to reduce or divest equity holdings in European oil and gas majors based on the companies’ investment expenditure.In the meantime, the scheme would be engaging with these companies through the Climate Action 100+ initiative, the Principles for Responsible Investment, and “any other identifiable means”.Tankwe said that, based on research from CarbonTracker, none of the oil and gas majors’ investment budgets were compatible with a 2°C pathway, but Ircantec considered these companies were key to making a success of the energy transition.Representatives from Total and Engie took part in an event last week, at which Ircantec announced its decisions – although they had not been given prior notice of the exact substance of those decisions.Tankwe emphasised that the scheme had not decided on a blanket oil and gas sector exclusion, in part because of the implications for jobs – Ircantec believed the energy transition needed to be a “just transition”.Ircantec’s divestment plans were announced a day after the Intergovernmental Panel on Climate Change (IPCC) released a report detailing the benefits of limiting global warming to 1.5°C, compared to 2°C.Asked whether Ircantec would consider adopting 1.5°C as its criterion, Tankwe said the trustees had not discussed the IPCC report and any decision would require a further period of analysis.The decisions Ircantec had recently announced were the result of more than a year’s work, she said.last_img read more

​MP Pension changes name to AkademikerPension

first_img“This indicates that members who have normally been barred from attending the physical general meeting have now been given the opportunity to participate in the debate,” said Munch Holst.The DKK128bn (€17.2bn) fund also reported its members voted against a proposal from Danish campaign group Ansvarlig Fremtid (Responsible Future) to drop all shares and bonds in gas companies failing to align with the goals of the Paris pact.Some 68% of its members opposed the motion, with just 32% voting in favour, the fund reported.At MP Pension’s 2019 AGM, members voted for the fund to sell off bonds in companies that extract coal, tar sands and oil, and the 2017 AGM saw the goals of the Paris Agreement being written into MP Pension’s investment policy by a unanimous supervisory board.MP Pension recently became the third Danish pension fund to sign up to the UN-convened Net-Zero Asset Owner Alliance (AOA).The bulk of MP Pension’s customers are members of the Danish Association of Masters and PhDs (DM); the Danish Psychological Association (DP), and the Danish National Union of Upper Secondary School Teachers (GL).Looking for IPE’s latest magazine? Read the digital edition here. MP Pension, one of Denmark’s largest pension funds, approved a name change at its digitally-held annual general meeting (AGM) – an outcome its chief executive officer hailed as freeing the fund up to attract more customers.At its AGM last week, scheme members of the soon-to-be re-named AkademikerPension also voted against a motion to divest gas stocks and bonds whose issuers failed to live up to the objectives of the Paris Agreement — to keep global temperature rise below 2°C — despite having supported major climate moves in the last few years.Jens Munch Holst, MP Pension CEO, said: “AkademikerPension is a perfect name to accommodate all our members, and at the same time we can move forward with our strategy of attracting new customers to our unique value proposition for high returns on a responsible basis.”MP Pension said it would adopt the new name on 1 September, which was approved by 91% of the nearly 2,400 scheme members attending the online meeting – an attendance figure the pension fund said was up 30% from last year’s AGM.last_img read more

Luxury Gold Coast villas hit the market

first_imgThe project will have 10 tri-level villas.More from news02:37International architect Desmond Brooks selling luxury beach villa15 hours ago02:37Gold Coast property: Sovereign Islands mega mansion hits market with $16m price tag2 days ago“It’s a very rare site as it’s hard to get a site that’s directly on the riverfront,” Mr Mian said. You can stand on your balcony or terrace and basically throw food to the fish.”Mr Mian said his experience in selling property on the Gold Coast meant he knew what buyers wanted.“I’ve realised people need separate spaces so each villa has got two living areas — one downstairs and one on the third level,” he said. “Each home has also got a stunning outlook.” A taste of what the villas at Salacia Waters will look like.A LUXURY boutique villa development at Paradise Point has hit the market.Salacia Waters Marina Homes is set to include 10 tri-level villas priced between $2.25 million — $2.6 million.Two villas are already sold with both buyers hailing from nearby Sovereign Islands.Ray White Runaway Bay Group principal Ali Mian is behind the project on Marina Pde. Each of the villas will have water views.Residences have three bedrooms, three bathrooms, a private lift, and the option of having a marina berth. They also have their own private street entrance. Construction is expected to start next month and will be complete in 2019. Ray White Runaway Bay Group agent Edin Kara is marketing the project.last_img read more

Five homes for the cost of one

first_imgThe 14m by 14m barn can be converted for rustic country-style wedding parties.A further possibility, given the already-available accommodation offering, was to play host to country weddings. The property has a small chapel by the water and a large 14m by 14m barn that could be converted for wedding receptions.Then there are the fenced paddocks that could be rented out to farmers for large animal agistment. Income stream 4: The 5.43 hectare site could also allow for large animal agistment. MORE: Bargain: ‘Buy it before the bank does’ MORE: Darren Palmer reveals the colour of 2019 and design trends MORE: Misled Compound with motocross track hits the market MORE: Karmichael Hunt lists Brisbane home Income stream 2: Pursuing up to RV sites for short stay tourism. More from newsParks and wildlife the new lust-haves post coronavirus15 hours agoNoosa’s best beachfront penthouse is about to hit the market15 hours agoIt has a massive 1 hectare dam which was currently used for irrigation and lake-style “water activities and relaxation”.Another income stream has been explored with preliminary approval for 50 recreational vehicle (RV) sites to capitalise on short stay tourism in the region. Income stream 3: The owners have considered using the tiny chapel “Our Lady of the Lake” for small private weddings.center_img The large site from the air.Or if you really don’t want to side hustle yet, the property was “perfect” for joint occupancy with extended family members, he said, with more than enough land to also have “cows, chooks and gardens”. The main house has two bedrooms, with each of the three one-bedroom cottages offered furnished and the property also has a separate one bedroom unit that was “currently used by overseas owners during home visits”.The cottages were currently fetching an average $220 a week in rental, according to Mr Dwyer, with the main home averaging $370. FOLLOW SOPHIE FOSTER ON FACEBOOK Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 0:51Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:51 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD576p576p432p432p270p270pAutoA, 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 Rate1xFullscreenStarting your hunt for a dream home00:51 320-342 Neptune Street, Maryborough, is a sprawling 5.43 ha property with multiple possible sources of income. This home is a masterclass in how to side hustle like a champion — with a main house, three cottages, council approval to build more, and four possible streams of income.The sprawling 5.43 hectare property at 20-342 Neptune Street, Maryborough, currently has six bedrooms spread across five homes with six bathrooms and parking for seven vehicles.Agent Nigel Dwyer of Sprake Real Estate Maryborough listed it at $695,000, describing it as one that could have “income to support your retirement or tree change lifestyle”.“Occupy the main residence and improve the property further to prosper or just enjoy the simple lifestyle it presents currently with the bonus of a secure passive income received with rental of the three cottages and main residence.” Income stream one: The cottages are rented out at around $220 a week.last_img read more