BpfBouw, 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.
Offshore Energy Today StaffSpotted a typo? Have something more to add to the story? Maybe a nice photo? Contact our editorial team via email.Also, if you’re interested in showcasing your company, product, or technology on Offshore Energy Today, please contact us via our advertising form, where you can also see our media kit. The Norwegian Ministry of Petroleum and Energy has approved ConocoPhillips’ development plan for the Tor 2 oil field offshore Norway.Photo: ConocoPhillips / illustration photoThe Tor 2 project, located in the North Sea in the Greater Ekofisk Area, is a redevelopment of the Tor field, which was on production from 1978 through 2015. ConocoPhillips submitted its development plan in July.The project plan envisions a two-by-four slot Subsea Production System (SPS) with eight production wells. The SPS is planned to be connected to the Ekofisk Complex by multiphase production and lift gas pipelines to existing risers at the Ekofisk 2/4 M wellhead platform. Controls and utilities are provided through a service umbilical from the same existing platform.The new greenfield facilities will be located approximately one kilometer west of the original Tor platform with no connection to the shut-in facilities.Seven production wells are planned to be drilled in the Tor formation. In addition, a pilot well is planned to test long-term productivity in the Ekofisk formation. The resource potential for the Tor II project is in the range of 60-70 million barrels of oil equivalent.“It is great to see that old fields can revive. Tor has already been in business for 37 years. Now a new development plan has been approved and it is ready for a “Tor comeback” in 2020. Through active efforts by the oil companies and technological advances, Tor II will create new jobs and large revenues for the community,” said Oil and Energy Minister Kjell-Børge Freiberg.The total investment in the development is estimated at NOK 6.1 billion (USD 662,5 million). ConocoPhillips has said that the development concept has robust economics and a cost of supply below $30.ConocoPhillips operates the project with a 30,66 per cent stake, Total owns 48,2 per cent, Vår Energi 10,82 per cent, Equinor 6,64 per cent, and Petoro 3,69 per cent.