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September 29, 2020 | |Post a Comment

first_imgThe ISIF, unlike the NPRF, will invest in Ireland with the aim of stimulating economic activity in the wake of the country’s bailout.As a result, the NPRF will gradually sell off its non-domestic holdings so the cash can be redeployed.In other news, a £650m (€790m) London pension fund is to increase its exposure to alternatives, investing £50m in the asset class.The London Borough of Barking & Dagenham Pension Fund has asked bfinance to oversee the diversified alternatives tender process, allocated more than a year ago after it decided to overhaul its investment strategy.As part of the shift, the fund said it would also invest an undisclosed amount in social housing or inflation-linked real estate – with manager interviews scheduled to be conducted for both mandates in March.“With these changes, it is hoped that the fund will be flexible and responsive to adapt to changes in the future,” the fund’s 2014 Business Plan said.Its tender said it would appoint one manager to the diversified alternatives portfolio, managing the money either as a segregated account or a pooled fund.Asset managers have until 10 March to apply, with further information available from bfinance’s London office. The National Pensions Reserve Fund has sold its entire private equity portfolio, most recently valued at €716m, to a US secondary private equity manager.In a statement, the fund said Lexington Partners had agreed to acquire an estimated €800m in fund holdings and outstanding commitments, spread across two dozen private equity funds.The sale, initiated in September last year, is expected to finalise in the coming months, the NPRF added.The reserve fund decided to sell its private equity holdings, comprising close to 11% of its discretionary portfolio, as part of a shift in asset allocation ahead of the €6.8bn portfolio’s transformation into the Ireland Strategic Investment Fund (ISIF).last_img read more

September 29, 2020 | |Post a Comment

first_imgFive funds generated losses.Uraloboronzavodskiy, one of seven funds that had its licence revoked by Bank of Russia in August, made the biggest loss, of 44.27%, followed by Tikhiy Don at 40.96%.Over the period, the number of NSPF-insured members grew by 27.5% to 28,135,454, and pension savings by 50.2%, in Russian rouble terms, to RUB1,700.7bn (€276.7bn) at market value.Meanwhile the net asset value of VEB’s pension portfolio fell by 3% to RUB1,835.4bn.In 2014-15, the 6% contribution to the mandatory pension system was diverted into the first pillar and will only be reintroduced into the second pillar in 2016.However, the 24 funds that have converted to joint-stock status and received central bank approval to join the guarantee scheme of the Deposit Insurance Agency (DIA) by the end of March 2015 did receive the contributions frozen in the second half of 2013, amounting to more than RUB600bn.A further five have since joined the DIA.Transfers from VEB to the privately managed system also contributed to asset growth.DIA-member funds have also been allowed a longer investment horizon, of up to five years, enabling them to fulfil president Vladimir Putin’s objective to get pension monies more involved in financing infrastructure and other capital projects.Since March, VEB has also been allowed to expand its otherwise highly conservative portfolio into infrastructure and other economic development bonds.According to Russia’s Ministry of Finance, in the second quarter of 2015, VEB invested some RUB60.1bn in such projects.In the case of the NSPFs, infrastructure and related bonds accounted for RUB112.9bn of the RUB128.8bn asset growth in the second quarter.These investments included securities issued by the oil company Bashneft (RUB25m), Russian Railways (RUB22bn) and the energy grid operator Rosseti (RUB11bn).Some RUB15.5bn was invested in securities related to the construction of the new Moscow-St Petersburg highway, and RUB60bn in housing projects, including bonds issued by AHML, the Russian agency for housing mortgage lending.As a result, the asset-allocation profile of the funds has changed.The central bank reported that, in the two months since the start of June, the share of bank deposits and cash has fallen from 46.8% to 35.4%, while that of corporate bonds has risen from 30.8% to 38.2%, and that of equity from 7.9% to 10.1%.The share invested in government securities remains small, although pension funds did reportedly buy 40% of the first inflation-linked OFZs (federal loan obligations) issued this July.Alongside nudging the funds towards longer-term investment, the central bank is also tightening up limits on pension funds investing in the assets of affiliated companies, those belonging to the same bank holding company or projects of shareholder companies.It has also expressed concern about investments in mortgage participation units and closed-end investment fund units – assets it described as non-transparent in terms of valuation. Russia’s non-state pension funds (NSPFs) averaged a year-to-date return of 9.9% in the first half of 2015, according to Bank of Russia, the central bank and sector regulator.Vnesheconombank (VEB), the state-owned bank that manages mandatory pension assets for those workers who have not chosen an NSPF, achieved a return of 12.2%.The returns of 61 of the 87 funds operating at the time exceeded the year-to-date June inflation rate of 8.52%, but the overall range was huge.The highest return, of 27.08%, was generated by the closed-end fund Doveriye, followed by European Pension Fund (23.29%), Regionfond (20.60%) and Imperiya (20.43%).last_img read more

September 29, 2020 | |Post a Comment

first_imgYves Chevalier, executive director at FRR, said the new rule had no implications for the reserve fund’s asset allocation but simply facilitated its implementation.“It means we can, without launching calls for tenders, increase our investment in investment funds, such as infrastructure or real estate funds,” he told IPE.FRR is currently prioritising a move into illiquid assets, after the government last year allowed it to invest €2bn in French assets including property and infrastructure.“It was necessary to enable us to implement our €2bn programme,” said Chevalier of this week’s decree.The bulk of the new allocation – €1.4bn – will be invested under mandates that will be put to tender, according to Chevalier.FRR has already launched a €600m private debt tender and will later this year seek bids for some €800m in private equity management mandates.Because it has earmarked a relatively small amount to invest in asset classes such as infrastructure, however, FRR does not want to put this out to tender, said Chevalier.The same goes for real estate, to which it has allocated no more than €300m.To be able to meet its targeted allocations to domestic infrastructure and property, however, FRR needed to be able to increase the amount to invest via investment funds.As such, it is taking its overall allocation to illiquids to €2.2bn, with the additional €200m set aside for investment in investment funds.“To be able to invest €2bn in France, we’re going to have to do €2.2bn,” said Chevalier, “because, when it comes to infrastructure, you don’t find funds exclusively focused on France. Instead, they might be around 50% in France but also with exposure to other European countries such as the UK or Germany.” France’s €36.3bn national pension reserve fund has been granted permission to invest more in investment funds, a change an executive director at the fund said would make it easier to implement its new allocation to illiquid assets.  A decree published on Wednesday allows the Fonds de Réserve pour les Retraites (FRR) to invest up to 20% of its assets in investment funds (Ucits); the previous limit was 15%.Beyond this, the asset owner is required to launch a public procurement process.FRR has been seeking to have the rule relaxed for some time, IPE understands, and formally made the request at the end of October last year.last_img read more

September 29, 2020 | |Post a Comment

first_imgThe new fund – named Employees’ Fund for Residual Holiday Funds (Lønmodtagernes Fond for Tilgodehavende Feriemidler) – will manage the cash equivalent of an extra 12 months’ worth of holiday entitlements, which are being granted to existing employees in Denmark as a result of bringing its legislation in line with EU law.“We have some ideas ourselves but we also want to be very open and listen to thoughts and inspiration from a lot of sources”Charlotte Mark, LD“We are now in the phase where we are collecting inspiration, and we are trying to discuss with different external business partners and others, how should we actually do this, how should we set this up,” Mark said.“At the moment we have just posed a lot of questions, throwing the idea up in the air and having a lot of internal discussions.”As part of this, Mark and the team are going on tours to visit different asset managers and thought leaders with different perspectives, she said. Credit: LDLD’s office in Frederiksberg, DenmarkWhile LD currently invests purely in liquid equities and bonds – because as a declining fund with a high average member age it needs to be liquid – its management may consider adding less liquid assets to the new holiday fund.The new fund could include more alternatives, and it could include asset types that LD has not been investing in for a while, Mark said.Given that the new fund may bring in up to DKK85bn of assets to manage, is LD considering doing some investment in-house in the future?“Potentially it is something we will have to consider. But I don’t expect that we will build up a big staff internally. I think we might add a few resources to the team, but we will certainly continue using external managers,” she said.See also: LD gains a new lease of life, from IPE’s October edition Charlotte Mark, CFO, LD“We have some ideas ourselves of course, but we also want to be very open and listen to thoughts and inspiration from a lot of sources,” the CFO added. “At the same time we need to do some more analysis of the fund itself because there are a lot of unknowns.”How much will LD run?Perhaps the biggest of these unknown factors is how much money LD will be managing in the new fund.According to the government agreement about the management of the extra holiday entitlements, employers will be given the freedom to choose whether they put money they owe staff into the fund managed by LD, or whether they keep that liquidity and take out a loan with LD instead, servicing that borrowing at the rate of wage inflation.At the latest, companies must pay the money into LD when individuals retire, but it is a feature of the holiday fund legislation that firms can choose to pay at anytime before that.“We need to do some more analysis there because obviously the total fund will deliver a mix of this employer loan, which will give a return of wage inflation, and the return of the pool that LD will invest in capital market assets,” said Mark. “We have to look at the total fund and optimise. But how big a part of the total fund will consist of the employer loans initially and how this develops over time is an unknown.”While the total fund size could be as much as DKK85bn, LD does know at least that it will receive close to DKK10bn in the first year of the fund’s operation, because this is money that will already have been paid into existing vacation funds by employers during 2019.“We have to try to model employer behaviour, or at least work with some different scenarios, different possible pool sizes, and then have some different approaches,” Mark explained.“We have some theories. For instance, if you have turnover in your staff it may be too high an administrative burden to hold onto liquidity for people not working in your company anymore, so when companies have staff turnover, it is likely that they will choose to pay in for these employees.“It could also be the case that some smaller companies will find it too much of an administrative burden in their annual report and accounting, and they might choose to pay in, but obviously it also depends on how tight your liquidity is.”New asset classes being consideredWith the existing structure LD already has in the form of its investment of externally-managed “building blocks”, Mark said LD was ready to invest from day one.“What we have to decide is if we want to add different asset classes and different building blocks from the existing ones,” she said.center_img Having received the parliamentary go-ahead to manage Denmark’s new holiday fund, the small management team of Lønmodtagernes Dyrtidsfond (LD) has started work on designing the set-up for the new fund which could see a tripling of its assets under management.Charlotte Mark, CFO of LD, which currently manages DKK42.8bn (€5.7bn) pension fund, told IPE in an interview: “We are just at the dawn of thinking about how things should be.”LD was created to run a fund investing one-off frozen cost-of-living allowances granted to Danish employees at the end of the 1970s. There have been no new inflows since that original capital contribution from the government, so the fund has been gradually shrinking, despite investment returns and many members keeping their money invested with LD beyond retirement age.With its new mandate, LD seems set to continue for the next four decades.last_img read more

September 29, 2020 | |Post a Comment

first_imgShell will also incorporate a link between energy transition and long-term executive remuneration as part of its revised remuneration policy, engaging with shareholders and other relevant stakeholders. This will be subject to a shareholder vote at the 2020 annual general meeting.Other commitments include:Publication of an annual update on Shell’s progress towards lowering its carbon footprint;Third-party assessments of its net carbon footprint to be published on its website;A five-yearly review of updated “nationally determined contributions” and other developments, to calibrate its own pace of change in line with society;A review of Shell’s memberships of trade associations to assess alignment with its stated positions, to be published in the first quarter of 2019.Adam Matthews, director of ethics and engagement for the Church of England Pensions Board and co-lead of the investors’ dialogue with Shell, said: “This joint statement is the first of its kind, sets a benchmark for the rest of the oil and gas sector, and shows the benefit of engagement – aligning institutional investors’ long-term interests with Shell’s desire to be at the forefront of the energy transition.”He added that investors would be able to track Shell’s performance through the Transition Pathway Initiative, an independent academic tool hosted by the London School of Economics, which assesses companies’ preparedness for transition to low-carbon economy. Last year , Church Commissioners for England succeeded in lobbying ExxonMobil to provide information to shareholders on “energy demand sensitivities, implications of 2ºC scenarios, and positioning for a lower-carbon future”.The resolution – which called on the company to report on how its portfolio of reserves and resources would be affected by efforts to limit the average rise in global temperatures – was passed by shareholders in defiance of the ExxonMobil board’s recommendation to vote against. A similar resolution was defeated in 2016. In a groundbreaking joint statement with investors, the company said it would start setting specific targets for shorter-term periods – three or five years – to be set each year. This process would run from 2020 to 2050, the statement said.The proposals are subject to shareholder approval.center_img Royal Dutch Shell has announced plans to set short-term targets to reduce the net carbon footprint of its energy products and link them to executive remuneration, after years of investor pressure.The plans were developed with institutional investors on behalf of Climate Action 100+, the global investor initiative with members running more than $32trn (€28.2trn) in assets under management.Investor engagement was led by asset manager Robeco and the Church of England Pensions Board, and included representatives of Eumedion – the Dutch platform for institutional investors – and the Institutional Investors Group on Climate Change. Other active participants were Dutch pension manager APG, the Environment Agency Pension Fund and the Universities Superannuation Scheme.Shell had previously stated a long-term ambition to reduce its net carbon by about 20% by 2035, and around half by 2050.last_img read more

September 29, 2020 | |Post a Comment

first_imgFurther readingHow We Run Our Money: HSBC UK Pension Scheme Mark Thompson spoke to IPE in 2017 about his creative DB de-risking strategy and the search for innovation in DC Mark Thompson, CIO of HSBC’s UK pension scheme, is to leave his role to become permanent chief investment officer for the London CIV in September.Thompson will take over from Mike Pratten, who joined the £36bn (€40.4bn) local authority pension asset pool at the start of May on an interim basis from insurance company Canopius.In more than eight years at HSBC, Thompson has overseen the defined benefit section’s growth from €15.9bn when he joined in 2011 to €30.3bn according to the bank’s latest annual report.In addition, he has developed the bank’s innovative approach to defined contribution (DC), introducing a ‘three-headed’ investment strategy to give members the option of an annuity, cash lump sum or drawdown at retirement. He also worked with Legal & General Investment Management in 2016 to develop a DC default investment fund with a climate change ‘tilt’ and a positive environmental, social and governance policy. The DC section has assets totalling £4bn, according to a statement from the London CIV.In a statement, the London CIV said Thompson would join on 2 September, with Pratten continuing as temporary head of the investment team until then.Thompson said: “I am delighted to be joining the team at London CIV. ‎I look forward to contributing to the further development of LCIV, and to helping the organisation meet the expectations and requirements of its shareholders.” Lord Bob Kerslake, chair of the London CIV, added: “Mark comes with enormous experience and a strong track record of achievements. This will be of enormous benefit to the London CIV as we move forward.” Pratten was London CIV’s first investment chief since Julian Pendock left the company in January 2018. In February this year the CIV appointed Mike O’Donnell as its permanent CEO, succeeding Mark Hyde-Harrison. Hyde-Harrison held the role on an interim basis and oversaw major changes to the CIV’s governance structure.last_img read more

September 29, 2020 | |Post a Comment

first_imgNBIM relied both on data about a company’s current performance and information about drivers of value that may be relevant for its long-term performance, they said.“In addition, companies also need to report more broadly on sustainability, as they have a wide set of stakeholders,” they said, adding that NBIM believed company boards should consider the broader environmental and social consequences of business operations and account for associated outcomes. “This information may in itself become financially material over time,” wrote Smith Ihenacho and Neervoort.Sustainability data currently published by companies was often incomplete and – or – not comparable, they said.“Significant gaps in disclosures include a lack of information to assess companies’ exposures to sustainability risks (such as information on supply chain, operations, assets or customers), incomplete disclosures on companies’ management and performance, in particular on social issues (e.g. human rights and corruption), and insufficient forward-looking information,” NBIM wrote.NBIM, which manages the NOK10.1trn (€958bn) Government Pension Fund Global (GPFG), has been vocal in its desire for better ESG corporate disclosure. In March, when it published its annual responsibility report outgoing chief executive officer Yngve Slyngstad said that the manager wanted more relevant and comparable reporting from companies.In February, NBIM responded to a paper by corporate governance organisation Eumedion on creating a non-financial reporting standard, arguing that instead of setting up a new, single standard-setter, it was important to build on existing sustainability standards.It cited the Sustainability Accounting Standards Board (SASB) and the Global Reporting Initiative (GRI) as standards that could be used – a point it reiterated in its reply to the consultation on the future of the NFRD, which ends on 11 June.In a webinar organised by the Principles for Responsible Investment earlier this week, Martin Spolc, head of unit for sustainable finance at the European Commission, indicated the Commission would have a legislative proposal for changes to the NFRD by the first quarter of 2021. The manager of Norway’s sovereign wealth fund has called on the European Union to make a clear distinction between financially-material sustainability information from companies and that which is not, in the new version of its Non-Financial Reporting Directive (NFRD). In its response to the consultation on the EU’s revision of the directive, Norges Bank Investment Management (NBIM) wrote: “Companies could be asked to integrate financially material sustainability information into their financial disclosures, such as annual reports, while information on sustainability issues which are not financially material could be disclosed through other channels.”In the letter, NBIM’s chief corporate governance officer Carine Smith Ihenacho and Séverine Neervoort, senior analyst, corporate governance at the subsidiary of the Norwegian central bank, wrote that they would welcome a clear distinction in the directive between sustainability information which was financially material – therefore relevant for investors – and information which was not financially material, but which was relevant to other stakeholders.“As an investor, we expect companies to provide information on social or environmental issues which are financially material to their business, as a starting point,” the pair wrote.last_img read more

September 29, 2020 | |Post a Comment

first_imgHelen Dean, CEO of NEST, said: “We’ve achieved a lot at NEST over the last decade and the creation of Nest Experience will help us continue to grow from good to great over the next decade.”Gavin Perera-Betts, now managing director of NEST Experience, said: “NEST has been at the forefront of revolutionising pension scheme service delivery during the first decade of our existence, achieving a level of operational efficiency never before seen in this industry.“The challenge for the next decade is to revolutionise that service again to take advantage of the opportunities that technology offers to bring our members closer to their savings. We have the drive and ambition to go further and I am thrilled to take on this challenge.”Looking for IPE’s latest magazine? Read the digital edition here. UK defined contribution master trust NEST has named Gavin Perera-Betts, formerly its chief customer officer, to lead a new customer-centred service delivery business unit.Dubbed NEST Experience, the new unit aims to deliver “a best in class service to NEST’s customers as their expectations and the technology they use evolves over the coming years”.Perera-Betts has been with NEST since before it was formally established in 2010 and, according to the £12bn (€13bn) DC provider, played an instrumental role in the design of its digital-first service.NEST has grown to become the largest UK workplace pension scheme by number of members – more than 9.3 million – and one in three of the working population has been expected to have a retirement pot with the provider by the late 2020s.last_img read more

September 28, 2020 | |Post a Comment

first_img ALEX JORDAN — MCGRATH PADDINGTON — 30 Ruskin St Taringa “The kitchen is where most families gravitate to. And when it comes to selling, it is often the most important room in the house for buyers. It is important to have an impressive kitchen if you can but in terms of investment, the focus should be on the facades, the gardens, the first impression, internal painting and property styling. Those are the elements to focus on if you don’t have the budget for an expensive kitchen renovation. You will want to cook for friends at 30 Ruskin St at Taringa JASON ADCOCK — ADCOCK PRESTIGE — 36 Morley St Chelmer “It is the hub of the house and in most homes these days, the kitchen is an integral part of the whole open-plan family room setting. There is a big push to have everything from stone or marble benchtops to top-of-the-line appliances, butlers pantries. The days of the kitchen being closed off a long gone. When it comes to selling, I tell sellers that cleaniless is everything. Get in some qualified cleaners, paint. Put your money into new carpet and making the gardens look spectacular, and don’t forget styling”. Stylish and functional, the kitchen at 36 Morley St, Chelmer, is the hub of the home LEIGH KORTLANG — RAY WHITE ASCOT — 36 Mein St, Hendra Kitchens are generally open-plan, light and bright and nowadays everyone focuses on the kitchen. They combine it with outdoor areas, it is often overlooking the pool or garden. These days they are often the most fun room in the house. If a seller had a budget to renovate, my advice would be to do the benchtops because that can give the space a big lift. 36 Mein st hendracenter_img 30 Ruskin St, Taringa is a real entertainers homeWhat room will sell a house and why? Three out of three Brisbane agents said the kitchen was the biggest selling point, but a full renovation was not always needed to secure a buyer. More from newsParks and wildlife the new lust-haves post coronavirus17 hours agoNoosa’s best beachfront penthouse is about to hit the market17 hours agoThe kitchen at 30 Ruskin St, Taringa, has been described as the ultimate “social kitchen”last_img read more

September 28, 2020 | |Post a Comment

first_imgVideo Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 1:44Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -1:44 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD540p540p288p288p180p180pAutoA, 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 Rate1xFullscreenHow to bid at auction for your dream home? 01:45SITTING at the start of Cairns’ growing southern corridor, White Rock is perfectly positioned to take advantage of a host of new infrastructure coming to the region in coming years.With its safe and friendly neighbourly vibes and access to great schools, White Rock is very popular with young families.And, despite being on the southside, it is still close to the city and several prominent schools meaning the affordable suburb appeals to families through its convenience.Schools within the suburb’s vicinity include Trinity Anglican School, White Rock State School, St Mary’s Catholic College, St Gerard Majella Primary School, Woree State School and Woree State High School. There is a kindergarten and childcare centre in White Rock. Trinity Anglican School has been located at White Rock for 35 years. From the top of its purpose built STEM facility, the view of the actual White Rock and surrounding landscape is spectacular.Principal Paul Sjogren said there were benefits to being located at White Rock.“Being on the southside of Cairns has its advantages; with easy access to Innisfail and Mission Beach areas while still being 15 minutes out of Cairns City. We have a wide range of great local shops and food outlets, and can be self-sufficient,” he said. More from newsCairns home ticks popular internet search terms2 days agoTen auction results from ‘active’ weekend in Cairns2 days agoThe nearby suburbs of Woree, Bentley Park and Mount Sheridan offer general shops but the closest major shopping centre is at Earlville, about eight minutes’ drive north, and offers large grocery outlets, speciality stores and a cinema complex.As well, an emergency operating theatre will be part of a new $25 million medical centre built to service Cairns’ southern suburbs.The Queensland Government unveiled plans for the Cairns Southern Corridor Medical Centre in April this year and the construction contract for which is expected to be awarded within the next financial year.It will be designed to be used as a temporary emergency response facility in the event of a natural disaster, if services become interrupted at Cairns Hospital.last_img read more