Norwegian oil fund to double number of company holdings above 5%

first_img“The fund is in a good position to provide capital in special situations such as in relation to initial public offerings, secondary offerings and capital restructurings,” it said.“We will use these opportunities to build larger ownership stakes in selected companies.”It estimated that companies in which it held a stake in excess of 5% would grow from 2013’s 45 to 100 by 2016.It would appear that some of this growth could stem from increased activity in the property sector, as greater involvement with listed property companies was an area identified as important for the fund’s growth.“Larger ownership stakes in listed real estate companies and public-to-private transactions will be considered,” the NBIM’s strategy paper said.”We will prepare the organisation for management of fully owned properties and a more active role in the development of our properties.”Hinting at growth in Asia-Pacific real estate holdings, NBIM said: “In the course of the strategy period, we will also consider investment opportunities in global cities outside Europe and the US.”It also confirmed that London and Paris would remain its focus for European investments, but that holdings outside the two gateway cities would be “selectively extended”.Touching on the recent government announcement that the GPFG would grow its environmentally focused mandates by NOK50bn, the report said areas such as energy efficiency, water and waste management and pollution control could see investment.It added that it would compile a standalone report on its environmental investment activities, with the mandates overseen by both internal and external managers.NBIM said it would maintain its target of having 5% of assets overseen by external managers – an arrangement that currently sees investments in frontier and emerging markets outsourced – resulting in 100 external managers by 2016.,WebsitesWe are not responsible for the content of external sitesNorges Bank Investment Management 2014-16 investment strategy Norway’s Government Pension Fund Global expects to more than double the number of companies in which it owns 5% over the next three years.The NOK5.1trn (€630bn) sovereign fund has also said it plans to grow its direct real estate portfolio, rather than relying on joint ventures, and will begin investing in infrastructure, a new asset class for the scheme.Outlining its investment strategy for the three years to 2016, Norges Bank Investment Management (NBIM) added that it would increase its foreign exchange trading capabilities as it grew the number of foreign currencies to which it was exposed.Addressing its equity strategy, it said the long-term investment horizon of the fund meant it was a natural “anchor investor”.last_img read more

Survey finds no link between higher investment costs, outperformance

first_imgDutch pension funds with higher investment costs failed to outperform lower-cost peers last year, according to a study conducted by KAS Bank.KAS said it could find no direct correlation between management costs and absolute returns either.The bank drew its conclusions from its first cost benchmark survey, based on the quarterly reports of 40 small and medium-sized pension funds, with 1.2m participants in total, provided by regulator De Nederlandsche Bank (DNB).KAS said its benchmark study compared pension funds of comparable scale on such things as number of participants and liabilities, taking industry-wide schemes (BPFs), company pension funds (OPFs) and occupational pension funds into account. It also found that the administration costs per participant were significantly higher at company schemes than at industry-wide pension funds.Asset management costs were 11 basis points higher at OPFs than at BPFs, according to the custodian, which noted that this was 3bps higher than a recent DNB survey into the impact of scale had suggested.However, at the same time, the benchmark report confirmed that administration costs per participant at small and medium-sized schemes declined when the number of participants rose.Administration costs at OPFs were 2.7 times higher than at the usually much larger BPFs, KAS said.The bank concluded that the new pensions vehicle APF, which allows pension funds to co-operate whilst keeping their assets ring-fenced, would be important for cost-cutting.Actuarial consultant LCP, which looked at data from 2012-13, previously suggested there was no correlation between costs and investment results.However, it put the results into perspective by noting that the surveyed time frame was short term and did not take pension funds’ long-term investment horizon into account.Commenting on the findings, Robbin van Cadsand, risk and reporting project manager at KAS, said the custodian intended to extend its next survey back to 2013, 2014 and 2015 to better address pension funds’ long-term investment policies.He said KAS had assessed 20 schemes with €500m-1bn in assets and a similar number of pension funds with assets of more than €1bn.last_img read more

Danica says results of new strategy show through in 2016 returns

first_imgThe pension provider, which manages DKK380bn (€51bn) of assets, said its recommended medium-risk product produced a return of 7.5% for people with 15 years to retirement.In 2015, the non-guaranteed products Danica Balance and Danica Link was between 3.1% and 10.3%, depending on the age of customers.Svennesen explained that, in the new version of the Danica Balance product, it introduced a third “mix” fund, with medium risk and markedly more investment flexibility.“It gives us better opportunities to target investments to all customers regardless of the risk profile they choose, as well as providing a much more dynamic placement of our assets, and this is a big part of the reason we have had an attractive return in 2016,” he said.He said the high level of political, as well as financial market, turbulence last year had meant portfolios had to be adjusted continually.“And given this, we are satisfied the portfolios were not particularly affected by market swings but at the same time did produce good returns,” he said.The “mix” fund was first available to customers at the beginning of last year, after Danica Pension redesigned the basis of Danica Balance, its key unguaranteed market-rate pension product to allow it it to broaden the range of possible investment instruments.The company first talked about its new investment strategy of increasing direct investments in businesses in 2014.Danica Pension said increased its alternative investments further in 2016 – investments in unlisted equities or bonds.“We are focusing on these types of investment because they have the potential for high and attractive long-term returns in relation to the risk, and we have built up the necessary skills to be able to exploit our strong market position,” Svennesen said.He said direct investments had already borne fruit in Danica Pension’s market-rate product in 2016 with a return of more than 15%.The provider said it generated a high return on bond markets despite the low level of interest rates, thanks to falling interest rates and dynamic adjustment of the bond portfolio.Customers with low risk and 15 years to retirement received an average 6.6% return in 2016.Equity markets ended the year with good, positive returns, Danica said, but added that there had been a very wide variation in returns during the course of the year.“Tactical allocation throughout the year, as well as investments in alternative assets and direct lending to well-run Nordic businesses, helped create the good return,” it said.Customers with a high-risk level in their pension product and 15 years to retirement saw average returns of 8.6% last year. Danica Pension, Denmark’s second-biggest commercial pension provider, said it started to see the results of its new investment strategy showing through in 2016 investment returns, which it described as “satisfactory and attractive”.Reporting some early 2016 return figures, Danica Pension said customers with its market-rate products typically received a return of between 5.2% and 8.8% in 2016, depending on their risk profile in the lifecycle product Danica Balance.Anders Hjælmsø Svennesen, Danica Pension’s CIO, said: “We have delivered a satisfactory and attractive return at Danica Pension in 2016.“It is pleasing we have really started to see the results of the new strategy within investment, and that it has benefited our many customers in 2016 in the form of an attractive return.” last_img read more

Emerging markets tipped to boost green bond issuance in 2018

first_imgA growing number of emerging markets plan to issue sovereign green bonds, which could boost the wider green bonds market through national and international knock-on effects, according to the International Finance Corporation (IFC).In 2017, emerging markets raised $80m (€65.1m) from issuing green bonds, led by Fiji and Nigeria. Nations including Kenya, Ghana, Morocco and Indonesia are expected to issue in 2018, according to a report from the IFC, a sister organisation of the World Bank.The total green bond market is expected to reach $250bn in 2018.The Fiji bond had raised FJD60m (Fijian dollars; €23.8m) by March 2018, and was expected to raise another FJD40m before July 2018, the IFC said. Ariff Ali, governor of the Reserve Bank of Fiji, said in a statement released with the IFC report: “Fiji has shown that small economies under threat from climate change can deliver effective, credible and innovative ways to finance climate work.”Governments issuing green bonds to attract climate-related financing should take a leadership and role model function that would trigger both national and international knock-on effects, added the IFC’s senior financial sector specialist Aaron Levine, author of the report.“What we hope to see following [national issuance] is private sector issuances and sub-sovereign issuances,” he said.This, Levine said, could happen as a result of the establishment of climate policy that came with the issuance of green bonds. He said: “When the government takes the lead, it is really setting the policy framework direction for the whole country.”A green bond policy framework based on a long-term issuance programme required governmental and climate-related green policies, Levine explained. Policy frameworks and greater ‘certainty’ could then motivate sub-sovereign issuers and the private sector to follow suit.Recently, the IFC and Amundi closed the largest green bond fund to date at $1.4bn. Institutional investors from Sweden, France, Austria and Denmark were among the fund’s backers.last_img read more

£43bn public pension pool Border to Coast adds to senior team

first_imgSeparately, the company has hired Jane Firth as head of responsible investment. She formally joined Border to Coast at the beginning of July, moving from South Yorkshire Pensions Authority, where she had been a portfolio manager for more than 25 years.She had already been working closely with Border to Coast and its other partner LGPS funds for around 18 months before transferring to the pension partnership, Elwell said.Firth remains Border to Coast’s cross-pool representative on responsible investment, but stepped down from her role on the executive committee of the Local Authority Pension Fund Forum (LAPFF) to focus on her role at the LGPS pool. Chris Hitchen, chair of Border to Coast, was recently voted onto the LAPFF executive.  Long was previously CIO at Aviva UK Life from 2015 to 2017, as part of which he managed the transition of around £60bn (€67bn) of assets to the group’s in-house manager after the acquisition of Friends Life.Border to Coast brings together 12 LGPS funds – Bedfordshire, Cumbria, Durham, East Riding, Lincolnshire, Northumberland, North Yorkshire, South Yorkshire, Surrey, Teesside, Tyne & Wear, and Warwickshire – with £43bn of assets between them. It opened to investment last month with £7bn worth of assets in its first two funds.It recently signed up to the LGPS’s cost transparency code, becoming the third of the UK’s eight asset pools to do so.“As a customer-owned and customer-focused organisation, Border to Coast is committed to providing clear, concise and fully transparent reporting to its customers and other stakeholders,” it said.Brunel Pension Partnership and LPP Investments have also signed up to the code. Border to Coast Pensions Partnership has launched the search for a permanent head of external investment capabilities as it seeks to build up its senior team.Former Aviva CIO Graham Long has been carrying out the role on an interim basis since joining the Local Government Pension Scheme (LGPS) collaboration in March on a short-term contract.Border to Coast had from the outset intended to carry out a full recruitment process for the permanent role, according to Rachel Elwell, CEO for the pensions partnership.Elwell told IPE the company hoped to announce its permanent chief investment officer and head of research later this summer. John Harrison joined the pool as interim CIO in February.last_img read more

EIOPA to prioritise IORP II ‘supervisory convergence’

first_imgEurope’s top pension fund regulator will scrutinise how countries and national supervisors have implemented the IORP II directive this year.The European Insurance and Occupational Pensions Authority (EIOPA) has already been working on “supervisory convergence” in the European insurance sector, but with the revised EU pension fund directive having entered into force earlier this year the Frankfurt-based regulator has indicated a new priority area for this year would be “the promotion of supervisory convergence in the European pensions sector regarding the implementation of IORP II”.The deadline for incorporating the IORP II directive into national law was 13 January 2019, although several EU member states have yet to take all the necessary steps.The European Commission has launched infringement proceedings against a number of member states for “non-communication” of transposition measures. A spokesperson for EIOPA told IPE that it would support national supervisors by providing guidance about the implementation of IORP II, given the changes and new requirements it introduced.She said this would include joint work in EIOPA project groups and the publication of “opinions” during the second half of the year on topics such as environmental, social and corporate governance (ESG) risks, and governance and operational risks.IORP II introduced new governance and communications requirements, and a requirement for an “own-risk assessment”.  There were also a series of references to ESG factors in governance, risk management and investment contexts. EIOPA recently published the results of a peer review it carried out last year of supervisory practices in different EU countries relating to the application of the prudent person rule for occupational pension schemes.It indicated that there should be more qualitative elements in investment supervision, and said it would “in a market-wide communication clearly define the elements” this entailed.In the past six months the EU pensions regulator has published two reports relating to the implementation of the IORP II legislation, identified as providing guidance and principles relating to the pension benefit statement and “other information to be provided to prospective and current members”.last_img read more

Austrian pension funds return 6.72% over H1 2019

first_imgSince inception of the second pillar in Austria in the early 1990s, Pensionskassen have returned 5.17% annualised on average.For the 2019 first half year results, the pension fund association identified active management, the Federal Reserve’s interest rate decision, and an equity market rally as the main drivers of the returns.“The U-turn by central banks was crucial for the development,” said the FVPK.After having signalled that a rates hike was on the cards for this year the US central bank in January announced unchanged rates, and that the next move could be a cut. Zakostelsky said that the “investment professional at the Pensionskassen proves that active management yields very good returns”.Sustainable investments and climate protection were “very important” factors in this active management and commitments in these areas were being expanded rapidly, he added. Q1 winners differ across risk categories The Austrian branch of the international consultancy Mercer recently published its analysis of the first quarter results for Austrian multi-employer Pensionskassen.Different providers achieved top ranks, depending on the risk category offered under a life-cycle model. Bonus was identified as best in the “defensive” category, which is the one with the lowest equity share (below 16%). Allianz was top both in the “dynamic” category, which has the highest equity share (over 40%), and the “balanced” category (24-32% equities).APK took the other two top ranks for the “conservative” (16-24%) and the “active” (32-40%) categories.Life cycle models have been offered by Austrian Pensionskassen since 2006 and slowly more and more people are making use of their right to choose a risk category.“Those Pensionskassen that actively inform their members about the possibilities of choosing a risk category report more active choices,” said Michaela Plank, pension expert at Mercer Austria. Austria’s Pensionskassen returned 6.72% on average over the first six months of 2019.In a press release, the chairman of the pension fund association FVPK, Andreas Zakostelsky, noted this “more than made up” for the market downturn last year.For 2018, the nine Pensionskassen had reported a loss of -5.18%, after a 6.13% return in 2017.The FVPK stressed – as it does with each quarterly return information – that pension fund results should be judged over the long term as “pensions are accrued over decades”.last_img read more

Rundown house transformed into spectacular Gold Coast home

first_img25 Wandin St, Nerang. 25 Wandin St, Nerang.IT commands attention with its modern design and stylish finishes.But this “in-town acreage” wasn’t always like this.David Brown and Michael Smith bought the rundown house in 2011 with a renovation in mind. “The original house had no connection to the land and no views,” Mr Brown said.“The idea out the back was to have windows and open it up because there are lots of birds and wildlife in the backyard.” 25 Wandin St, Nerang. 25 Wandin St, Nerang. 25 Wandin St, Nerang.They enlisted Brisbane architect firm Alexandra Buchanan Architecture to bring their vision to life.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 agoWhat they created was nothing short of spectacular.Walls were removed, a new kitchen and bathrooms installed, a new deck added and the house was rendered.The five-bedroom residence features an open-plan design, additional separate living areas and a gourmet kitchen. DETAILS Address: 25 Wandin St, Nerang Agent: Alex Hayes, LJ Hooker Nerang Auction: August 1, 6pm, LJ Hooker in-rooms Inspections: Sat & Sun, 1.30-2pm 25 Wandin St, Nerang.No expense has been spared with stone and glass finishes creating a timeless yet practical design.“It’s been a long time coming,” Mr Brown said. “It’s taken, on and off, probably four years.”Mr Brown said it was hard to choose his favourite feature but the views, bathrooms, media room and kitchen were among the standouts.last_img read more

First-home buyers have upper hand in Gold Coast’s northern corridor

first_imgPorter Davis Homes Queensland state manager Grant Whinnett said house hunters looking to buy their first home made up one of the biggest percentages of the market at the moment.“More affordable house and land packages and government incentives, particularly in Queensland and the Gold Coast, are certainly a contributing factor to this trend,” he said.The builder said it prided itself on offering first-home buyers affordable house and land packages without compromising on quality.Kris Hanney, 31, is building his first home with Porter Davis in Maudsland.He moved in with friends and cut back on everyday luxuries to save a $60,000 deposit, which took about a year.“Obviously moving in with mates was a big thing but I gave up smoking, even nights out with mates,” he said.“You have to, if you want something you’ve got to work for it.“Hard work pays off.” Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 1:50Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -1:50 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD540p540p360p360p180p180pAutoA, 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 Rate1xFullscreenDifferences between building in new or established estates01:50 MORE NEWS: Buyers splash almost $4 million on beachfront pad Kris Hanney is building his first home in Maudsland.Construction activity has slowed in some estates with heavy dependence on investors while others have expanded off the back of strong demand that no longer existed.“In recent months, some estates in Pimpama and Coomera have expanded to new stages, having sold all or almost all of the earlier stages during the period of stronger demand,” the report said.“The new home sites appear to be impacted by the slower take up as many are left vacant for a long time.”Herron Todd White residential director Janine Rockliff said changes to investment lending were responsible for the market flip.More from news02:37International architect Desmond Brooks selling luxury beach villa11 hours ago02:37Gold Coast property: Sovereign Islands mega mansion hits market with $16m price tag2 days agoBut she said developers were leveraging off the fact that first-home buyers often looked for smaller lots at more affordable prices as investors did.Despite market uncertainty and tighter lending criteria, first-home buyers seemed to be out in force. MORE NEWS: Coast castle’s price slashed First-home buyers could save many developmentsFIRST-home buyers are propping up some housing projects in the Gold Coast’s northern corridor because a wave of interstate investors has dried up, a new report says.Leading property valuation firm Herron Todd White’s latest Month in Review, to be released on Tuesday, says housing estates that targeted interstate investors are struggling the most.“Many of the housing estates in the northern fringe region have been targeted at interstate investors, but in the past six to 12 months there was a noticeable decline in the number of sales of land and building packages in this segment of the market,” the report said.“Consequently, some developers found themselves having to rely on first-home buyers to ensure the continuity of their projects.”last_img read more

This newly released penthouse, priced at $8M is a showstopper

first_imgDirector at Urbis, Paul Riga said a “take up” at the premium end of the market was evident and something he had noticed in the past 18 months to two years.“We are starting to see new products where buyers are getting their head around high end apartments offering a different lifestyle than a traditional one,” Mr Riga said.“It’s typically downsizers who are moving out of their current residence. There is a quality aspect they want in terms of location, fit and finish.” More from newsParks and wildlife the new lust-haves post coronavirus11 hours agoNoosa’s best beachfront penthouse is about to hit the market11 hours ago WHY VERTICAL RETIREMENT LIVING IS THE WAY TO GO HERITAGE HOME PART OF DEVELOPMENT The development at 443 Queen Street in Brisbane promises to set a new standard in high-rise homes.“Opportunities for luxury real estate in the Brisbane CBD are limited, prospective residents have the convenience of an inner-city location, together with a world-class design and magnificent amenities in their own building. We are confident this penthouse will be attractive to buyers at the upper end of the market,” Mr Pozzo said. MORE: Property clock reveals shock recovery spots Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 1:26Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -1:26 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD540p540p360p360p270p270pAutoA, 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 Rate1xFullscreenBuyers agents’ tips when looking to buy01:26 Inside the stunning $8 million penthouse at 443 Queen Street.The first penthouse sold last year for more than $6 million to a Brisbane local, who plans to move in once the development is completed.Equivalent to $20,000 per square metre, the penthouse is on level 47 and referred to as a “super-home in the sky” and occupies 400sq m of house-size living space.center_img There is a ‘butterfly’-shaped floor plan, allowing increased natural air ventilation throughout.The buyer will also have access to the recreation deck which features a 25m salt water infinity pool, yoga deck and private lounge and dining room with kitchen.Cbus Property CEO Adrian Pozzo is expecting buyer interest to be strong.With penthouses in Brisbane currently equating to just three per cent of the market, the preference for larger apartments continues to dominate. In the last quarter (up to June 2019), apartment sales in Brisbane were up 73 per cent, Mr Pozzo said. Are The Block tradies working for a bargain? The 443 Queen Street development has continued to attract interest from local and interstate buyers with more than 70 percent of apartments already sold.And to celebrate the release of the final penthouse, Cbus Property has partnered with Brisbane-based interior designer Anna Spiro, who will work with the buyer to design the penthouse throughout.*For more, check out Saturday’s glossy HOME and Realestate magazine, on stands tomorrow. Follow us on Facebook. The final penthouse has been released to the market at 443 Queen Street with a price tag of $8 million.The most expensive apartment to be released off-the-plan in Brisbane this year is now available for sale, priced at a whopping $8 million.The penthouse is the second of only two in Australia’s first, subtropical-designed building – 443 Queen Street. MORE:WHY THE TREND TOWARDS ‘SPOOLS’ IS HEATING UP 443 Queen St, a new sub-tropical development.Designed by WOHA and Brisbane-based Architectus, 443 Queen St is believed to be the most environmentally-friendly developments in Australia, featuring more greenery than any other apartment building in the country.The four-bedroom penthouse, each with private ensuites, includes four car spaces with an electric vehicle charging station, three separate balconies and 3m high ceilings. last_img read more