The proposed holistic balance sheet (HBS) will no longer look to impose a ‘one-size-fits-all’ approach to sponsor valuation, with the European Insurance and Occupational Pensions Authority (EIOPA) now considering a principles-based approach.In its consultation on the HBS, which included six potential balance-sheet models, the supervisor said it would look at the feasibility of a principles-based approach that took advantage of existing protection mechanisms.The paper also looked at how the HBS would need to assess purely discretionary benefits, guaranteed benefits and those with both guaranteed and discretionary elements.The principles-based approach put forward by EIOPA would examine the default risk of a sponsor, the strength of any company (differentiating between commercial and not-for-profit sponsors) and how sponsor support should be evaluated in cases where a protection mechanism, such as the Pensions-Sicherungs-Verein (PSV) of Germany or the UK Pension Protection Fund (PPF), was in place. EIOPA said that if a protection mechanism were used as part of the HBS as a “balancing item”, then the supervisor would need to be assured of the protection scheme’s security and ability to raise funds.Including protection mechanisms as a balancing item would simplify any HBS proposals, EIOPA noted, referencing particularly the advantages for multi-employer IORPs.However, it stressed that reliance on a protection mechanism would require minimum funding requirements to be in place.The supervisor said it accepted that a principles-based approach would be the superior model.“The standard methods developed by EIOPA,” it said, “are unlikely to be suitable for all types of sponsor support arrangements, particularly with complex interactions between security and benefit-adjustment mechanisms or embedded options.”The supervisor’s principles-based approach comes after warnings from the industry that the prior sponsor-assessment proposals could “mask” risk and lead to inconsistent and arbitrary valuations.EIOPA added that only limitless benefit reductions would be able to balance the HBS, rather than any situations where there were caps imposed on the amount of cuts.“By their nature, benefit reduction mechanisms will be the last mechanisms taken into account,” the consultation said.“Only where all mechanisms meant to strengthen the promise are fully taken into account will benefit reductions be considered.”It divided benefit reductions into three categories: Those agreed by contract between beneficiaries and the provider; those allowed as a last resort, as permitted by national law; and those imposed on savers in the event of sponsor insolvency.,WebsitesWe are not responsible for the content of external sitesLink to consultation paper
The authority was investigating whether Local Tapiola Pension’s retirement funds were transferred to Local Tapiola’s non-life insurance company using overpriced service contracts.The mutual pension insurance company bought technical and personnel services from the other companies of Local Tapiola Group over 2013, as it did not have the necessary networks and technology of its own.The authority was also investigating whether Local Tapiola Pension provided the watchdog with all relevant information regarding these liabilities, before merging with Pension Fennia.The end result of the investigation was that the authority refrained from giving Elo a public notice, but simply criticised the firm for some of its procedures in 2013.Satu Huber, Local Tapiola Pension’s managing director in 2013, who is currently the deputy managing director at Elo, said the criticism focuses by and large on business decisions taken in 2013. “Fiva says some of our service contracts with other parts of the Local Tapiola group should have been cancelled before the merger was confirmed,” she told IPE.“But how realistic doing this would have been before the merger … is another matter. The board and all parties were also aware of all the service contracts.”Huber believes a misunderstanding lies behind the investigation.“The media activity around this issue clearly discounted the fact that reports and investigations like this are the routine work of Fiva,” she said.”However, we are taking the authority’s criticism seriously. Elo’s board will convene in the near future to discuss the issue.” Finland’s Financial Supervisory Authority (Fiva) has refrained from giving Elo Mutual Pension Insurance a public warning for misconduct, but has reprimanded the company for some of its practices in 2013, Elo announced this week.Earlier this autumn, the supervisory authority investigated whether the managing director and board members of Local Tapiola Pension failed to abide by the local law on mutual pension insurance companies in 2013.Local Tapiola Pension was the predecessor of €19.4bn Elo Mutual Pension Insurance, launched together with Pension Fennia on 1 January 2014.The case was publicised initially by local news daily Helsingin Sanomat.
A European pension fund has tendered a $200m (€179m) US high-yield bond mandate using IPE-Quest.The unnamed pension fund said it was searching for an asset manager to provide an active management approach to core US high yield.Managers should benchmark against the Merrill Lynch US High Yield II Constrained index, observing a tracking error of 1-5%.The pension fund requires interested asset managers to have a minimum of $1bn in assets within US high yield and $2bn in assets overall. Managers should have at least a five-year track record.Interested parties should state performance gross of fees until April.The closing date for submissions is 26 June.The IPE news team is unable to answer any further questions about IPE-Quest tender notices to protect the interests of clients conducting the search. To obtain information directly from IPE-Quest, please contact Jayna Vishram on +44 (0) 20 7261 4630 or email [email protected]
But BlackRock said this would bring notable opportunities for global investors.“Economies outside the US continue to struggle, and emerging markets are likely to remain under pressure, although some adjustment has already occurred in anticipation of rate normalisation,” it said.“Equities may also find it difficult to advance in the face of an appreciating dollar and stagnant corporate earnings, placing greater importance on investment selectivity.“We prefer stocks, particularly European and Japanese equities, over bonds, and market-neutral strategies such as long/short equity and credit.”Deutsche Asset & Wealth Management said its outlook for 2016 was unchanged.Its CIO Stefan Kreuzkamp said: “We remain constructive on developed market equities, with a slight preference for Europe and Japan over the US. Sector-wise, technology, consumer cyclicals and financials remain in focus. The latter sector has historically outperformed as central bank interest rates start rising.”He added: “We acknowledge the market risks associated with the Fed hike – for example, fund flows out of higher-risk asset classes such as US or emerging market high-yield bonds.“We would, however, view pronounced equity market weaknesses in the aftermath of the Fed hike as a tactical buying opportunity.”The rate rise signals the divergence in monetary programmes between the Federal Reserve and the European Central Bank (ECB), according to James Rutherford, CIO at Hermes Sourcecap.“Furthermore,” he added, “there are signs disinflation across the euro-zone may soon pick up. As a result, we expect the ECB to further reduce its deposit rate this December in an attempt to kick-start bank lending.”He said this would be good for investors.“European equities could outperform US equities as excess liquidity struggles to find a home in the real economy and is parked in asset markets instead,” he said.“With global growth slowing, earnings expectations being reined back and an increasingly divergent stance in monetary policy between the US and Europe, we expect 2016 to be a year in which the euro-zone markets, awash with excess liquidity, reward those companies that produce an increasingly scarce commodity – consistent earnings growth.”Turning to fixed income markets, David Lloyd, head of institutional public debt portfolio management at M&G Investments, said: “It seems likely low rates will have caused some investors to take extra – and, perhaps, unfamiliar – risks in pursuit of yield.“Similarly, some players may have taken advantage of minimal rates to increase borrowing (leverage). It will take some time before we will be in a position to assess the effect of higher rates on such decisions.”Ian Kernohan, an economist at Royal London Asset Management, said: “While we agree the Fed will stick to a gradual path initially, the market can often underestimate the pace of tightening in a rate cycle.“If the labour market data remains robust through the rest of the winter, combined with a further rise in headline inflation, the market may have to revisit its benign view about the likely path of US interest rates.”In that case, he said: “Bond markets would be most vulnerable to such a reappraisal – in particular government bonds, which have enjoyed a multi-decade bull run of falling yields.”Meanwhile, Ken Taubes, head of US investments at Pioneer, said: “Our overall outlook for fixed income markets is fundamentally unchanged. We have seen corporate credit spreads widen despite the fact US economic activity is recovering, and we are seeing some recovery in Europe as well.“So wider credit spreads may represent a good opportunity.” While the US Federal Reserve’s decision to raise interest rates by 0.25 percentage points – the first increase in nearly a decade – was widely expected, market players have warned that what matters most now is the path of future rate increases.“The increase in borrowing costs may feel like a seismic change, but that’s primarily because it’s been so long since rates have been increased,” said BlackRock strategists.“The Fed said it expects rates to stay subdued, and the hiking cycle to be gradual, which should allow markets to absorb the increases with relative ease.”Having raised rates to a range of 0.25% to 0.5%, the Federal Reserve signalled it was likely to make four further increases of 0.25% each during 2016.
Peter Tros, sustainable investment analyst at ING Netherlands, added that investors sometimes needed a little push towards a sustainable choice.“Faced with a choice between a regular fund and a sustainable alternative, 81% picked the sustainable one, but after answering a series of questions about ESG, this percentage increased to 90%.”Tros also noted that just one in seven investors knew about the concept of impact investment, while three-quarters had never heard of the UN’s Sustainable Development Goals.“The Dutch indicated that they rate issues such as access to clean drinking water and proper education as very important, but they often don’t know how to factor them in to their investment decisions,” he said.IPE will be publishing an in-depth report into the latest ESG-related trends and ideas in the November issue of the magazine. Almost three quarters of Dutch investors are prepared to miss out on part of potential investment returns in order to support ESG considerations, a survey has suggested.The survey of more than 1,100 people – carried out by DirectResearch and commissioned by ING and NN Investment Partners – found that almost one in five would accept a 4% lower return if their investments benefited the environment and society.The research bureau concluded that the findings provided new proof that sustainable investing was developing rapidly from a niche market to mainstream, “as only a few years ago surveys suggested that Dutch investors were hardly interested in sustainability criteria”.“There is increasing evidence that sustainable investing doesn’t come at the expense of returns, and could even generate better results,” commented Valentijn van Nieuwenhuijzen, chief investment officer at NN IP.
The latest move follows KLP’s announcement in May that it was taking its tolerance threshold for coal as a component of businesses it would invest in to the minimum practical level of 5%.At the time the pension fund said this threshold was necessary as it was hard to get accurate information from companies on all revenue below this level.The coal sands move announced today has involved KLP excluding four Canadian companies and one Russian firm from its investments. Norway’s NOK692bn (€69bn) municipal pension fund Kommunal Landspensjonskasse (KLP) and its funds subsidiary KLP Funds are to sell the shares and bonds of five companies with oil sands activities as the group takes more climate-orientated action.Sverre Thornes, KLP’s chief executive, said: “By going coal and oil sands free, we are sending a strong message on the urgency of shifting from fossil to renewable energy.”KLP said it has decided to lower its tolerance threshold for investing in companies involved in oil sands activities, and now firms with more than 5% of their business in this fossil-fuel area will be excluded from its portfolios.This threshold had already been lowered to 30% back in December 2017. Source: Cenovus Energy Inc.Cenovus Energy’s Christina Lake oil sands projectThese are Canadian firms Cenovus Energy, Suncor Energy, Imperial Oil (which is 69.6% owned by ExxonMobil), and Husky Energy and Russia’s Tatneft PAO, the pension fund said.More than NOK305m of equity holdings have been sold and NOK229m of bonds, for a divestment totalling €53m.Thornes said KLP was continuing to reduce its exposure to companies involved in an activity not aligned to a two-degrees Celsius maximum warming target.“As the largest pension fund in Norway, KLP also wants to send a signal to the markets that oil sands should not form part of the current and future energy supply,” Thornes said, adding that KLP hoped other large asset managers would follow its example.Nobel Foundation runs sustainability footprint on listed equitiesNobel Foundation has assessed the sustainability footprint of its listed equity portfolio, which consists of 10 externally managed strategies.The underlying funds were assessed individually in addition to an aggregate analysis.According to a statement from Impact-Cubed, which was hired to carry out the assessment, the test showed that the aggregated investments have a positive net sustainability impact overall, with especially strong results regarding environmental externalities – carbon, waste, and water efficiency – and the alignment of products and services with the UN Sustainable Development Goals.“A net positive outcome across a total portfolio is not at all a given even for an asset owner who select their managers based on sustainability criteria,” said Impact-Cubed founder Larry Abele.“There is a large variation in the focus and strategies employed by ESG funds, which can result in them cancelling out each other’s benefits at total portfolio level,” he added. “If an asset owner is not paying attention to this, they may be invested in a climate fund and a governance quality fund who when put together yield a set of climate and governance exposures indistinguishable from an index-tracking portfolio.”Ulrika Berman, chief investment officer of the foundation, which is tasked with maintaining the value of the Nobel Prize, said: “Integrating sustainability into the selection and monitoring of individual managers is becoming established practice, but we are also thinking about impact in a systematic way in terms of our entire equity portfolio.”According to a statement, the SEK4.3bn (€422m) investor will repeat the footprinting exercise every six months.Magnus Dahlquist, a finance professor at the Stockholm School of Economics, sits on the Nobel Foundation’s investment committee and was one of the academics who supported the development of Impact-Cubed’s methodology in its early years.NEST launches responsible investment video for membersUK defined contribution (DC) provider NEST has launched a short video giving detailed information to members about its responsible investment approach in an accessible way.The video is the result of feedback from members and pensions experts, including a survey commissioned to better understand and engage with members, which found almost two-thirds (63%) of NEST savers said they want to know more about the pension scheme’s status as a responsible investor.The animation, which lasts around two-and-a-half minutes, emphasises the importance of responsible investing in a changing world, in a simple straightforward way.The video, the first in a series, will be available to members and the public on NEST’s website, as well as being made available to employers to host on their intranet.Helen Dowsey, Nest’s director of employer & intermediary experience, said: “One of our key findings was that members want more details on how NEST invests responsibly and more simplified information on our investment strategy illustrated in a digestible and relatable manner. So we’re producing videos like this one, which highlights how we’re managing our members’ money.”She said that upcoming videos would cover topics such as encouraging and helping members to log in for the first time, and “top ten tips” for employers to help them navigate the system.The video can be seen here.
In order to enable self-employed accruing a pension at a mandatory sector scheme, the current pensions legislation needs to be adjusted.Peter Borgdorff, director of PFZW, said the scheme is discussing the necessary changes with the ministries of social affairs and finance.He said he had high hopes that the healthcare scheme can carry out the pilot, which is scheduled to start in 2021.The pensions agreement between the government and the social partners includes the intention to create options for “adequate” pensions saving for the self-employed.According to Borgdorff, social affairs’ minister Wouter Koolmees was pleased with the initiative. Dutch healthcare pension fund PFZW said it is developing a pilot to enable self-employed workers in the cultural sector to voluntarily join mandatory industry-wide pension schemes, in order to accrue a regular second-pillar pension.It announced that the initiative had been taken at the request of workers and employers in the cultural sector – where incomes often fluctuate – and that the social partners were involved in the project.The principle is that both the worker and the client pay a 6% pensions contribution to the invoiced amount on a 50/50 basis.At year-end, the pensions contribution is to be converted into pension rights at PFZW.
REAL ESTATE: 4 Margaret Cres, WakerleyWHEN Alan and Mary Breadmore moved from Western Australia they were looking for somewhere suitable for their dogs.What they found is what they’ve labelled “the friendliest neighbourhood” they have ever lived in. The alfresco dining area at 4 Margaret Cres, Wakerley.The 4 Margaret Cres home at Wakerley is within walking distance to a number of parks, so that is where the couple settled for the six years that would follow, becoming part of the community.More from newsCrowd expected as mega estate goes under the hammer7 Aug 2020Hard work, resourcefulness and $17k bring old Ipswich home back to life20 Apr 2020“I will miss the community,” Mrs Breadmore said.“I joined Bushcare and a book club here, and I’ve got my friends from the dog park.” One of the three living spaces in the home.Mrs Breadmore said while single-level, four bedroom home had worked well for them as retirees, she suggested it would be great for a family as well.“It appeals to a family, especially with young children because of the space,” she said.“It’s got three separate living areas (and) you could have a playroom like I did for my granddaughter.”The couple originally migrated from interstate to be close to their daughter and granddaughter, and have now decided to downsize.The home has easy access to the Gateway Motorway. The home has an incredible outdoor living area, which looks over the pool.Mrs Breadmore said they had two English springer spaniels and wanted a park nearby wherever they would move to.“More than the neighbourhood, more than the house, I wanted to be somewhere close to a really nice park for the dogs,” Mrs Breadmore said. The kitchen is modern.When at home, the Breadmores loved to spend time outdoors, especially by the pool in summer.“We have a nice outdoor deck and pool, which we use at least once a day in summer,” Mrs Breadmore said.“It was great for the little granddaughter learning to swim.” The floorplan of 4 Margaret Cres, Wakerley.Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 10:02Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -10:02 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD432p432p270p270p180p180pAutoA, selectedAudio Tracken (Main), selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenJune, 2018: Liz Tilley talks prestige property10:02
The Lodges-Stirrat comprises15 freehold terrace homes featuring three to four bedrooms, multiple bathrooms and powder rooms, private balconies, European appliances and courtyards.Di Carlo Property Group and Urbanyte’s new prestige Coorparoo development, The Lodges — Stirrat, features personal lifts making the homes ideal for families, retirees and people with disabilities.Imagine no more grocery heavy lifting from the garage up the stairs. The living areas at the future-proofed townhouses.Belle Property Bulimba property consultant Paul Liddy said with an ageing population, it has never been more important for residential developers to create innovative ideas for more accessible homes.“Many of The Lodges 15 residences have one lift per terrace house,” Mr Liddy said. >>FOLLOW EMILY BLACK ON TWITTER<< “Private lifts and maintenance are now affordable for residential projects. “Where they were previously price prohibitive, slow and maintenance was a concern, these Italian-made lifts are commercial quality and can be fully maintained for around $400 a year.“This is not a common feature in two and three-storey constructions, but with so many buyers downsizing and wanting to live close to the city, the lifts provide the ultimate in convenience and flexibility.” More from newsParks and wildlife the new lust-haves post coronavirus16 hours agoNoosa’s best beachfront penthouse is about to hit the market16 hours ago THE BASICS An artists’ impression of the kitchen spaces.Mr Liddy said personal lifts solved a range of challenges in the development sphere.“With land at a premium, developers must build up, rather than across to accommodate all the features expected by buyers from a modern, inner-city development,” he said.“Incorporating lifts within two and three storey homes means older people with mobility issues can enjoy all the benefits of a luxurious, bespoke and convenient property without having to move to a village style development,” he said. “This development fills a need in the area for people, such as empty nesters and retirees, who have lived in Coorparoo their whole lives and would prefer to stay in the local area but need to down size from their Queenslander or large family home. The bathroom space.Designed by architect Platinum Design Architects and styled by interior designer Leigh Way Designs, Mr Liddy said The Lodges — Stirrat offered a place for Coorparooo residents such as empty nesters and retirees, who would prefer to stay in the local area, but need to down size. THE LODGES STIRRATDeveloper: Di Carlo Property Group and UrbanytePrice: With a range of three and four bed options, prices from mid-$800,000Location: 6 Stirrat St, Coorparoo
8-10 Peter St, Banora Point — what a view! More news: Cheapest suburbs to rent on the Coast 8-10 Peter St, Banora Point sold for $2.65 million.A SPRAWLING Coast property with spectacular views of the river has sold for $2.65 million, smashing the suburb record.The Peter St, Banora Point property changed hands in an off-market sale – $32,000 more than the previous record for the northern NSW suburb. 8-10 Peter St, Banora Point.Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 1:58Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -1:58 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD576p576p360p360p216p216pAutoA, 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 Rate1xFullscreenWhy location is everything in real estate01:59 8-10 Peter St, Banora Point is on a huge 6,228sq m block. More news: Hilltop house sells in huge deal 14-16 Old Ferry Rd, Banora Point held the previous sales record of Banora Point — it sold for $2.168 million last year. The house has four bedrooms, five bathrooms, a study, gym and home cinema. There is also a tennis court, pool and mango, avocado and citrus trees scattered around the property.The previous suburb record for Banora Point was $2.618 million for a mansion at 14-16 Old Ferry Rd.The sprawling house features four bedrooms in its design along with a home-cinema, games room, steam room and a guest retreat. Ray White Prestige Gold Coast agent Robert Graham handled the sale of the huge 6,228sq m hillside residence.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 is one of the largest single residential allotments in Banora Point perched high on the hill and commanding views that would rival most properties on the southern Gold Coast,” Mr Graham said.“It’s a cool property — it’s enormous and you just don’t find any other properties like it around here.” 4-16 Old Ferry Rd, Banora Point.