‘Crunch time’ for auto-enrolment to come in 2016-17, expert warns

first_imgThe costs of enrolling these employers could be considerable, Daykin said.This business might not prove cost effective to established providers such as Now Pensions, and many of these smaller arrangements could go NEST.He said pay-roll service providers used by many smaller employers might be a possible way to deliver auto-enrolment to them.He described the introduction of the new decumulation arrangements in the UK Budget by the chancellor as “blowing-up” the existing structure, which he hinted it might have been better to reform.He said there was no model worldwide of a successful decumulation phase in place.Referring to the proposals to introduce collective defined contribution arrangements to the UK, modelled on the Dutch or Danish pension systems, Daykin said these might be a “missed opportunity”, in view of auto-enrolment. He estimated that the new flat rate state pension coming in 2016 would work out at £160 (€200) per week. The crunch time for auto-enrolment in the UK will come in 2016-17 when hundreds and thousands of smaller employers must join the new pensions system, former government actuary Chris Daykin has warned.At a recent Politeia meeting in London, he said opt-out rates were currently less than 10% among the larger employers’ schemes, but he said a threat to the success of auto-enrolment could come if opt-outs increased to 20-25% among smaller employers.“There would be high risks to auto-enrolment if opt-out rates hit 20 to 25%,” he said.Research by Now Pensions, of which Daykin is a director, has shown low awareness of auto-enrolment among small employers.last_img read more

Insight looks to US with acquisition of fixed income manager

first_imgBNY Mellon has completed the purchase of Cutwater Asset Management, allowing its investment boutiques to gain a foothold in the US institutional and fixed income market.Cutwater, based in New York State, has $23bn (€18.3bn) in assets under management and is currently a wholly owned subsidiary of US bond insurer MBIA.It will operate as part of the BNY Mellon Investment Management brand but be managed by its largest boutique, Insight Investment.The sale is still subject to regulatory approval, and financial details on the transaction have not been disclosed by either party. BNY Mellon said Cutwater would now allow Insight to “enhance” its US offering and fixed income solutions.Cutwater currently specialises in core fixed income strategies, alongside long duration, high yield, loans and absolute return strategies.BNY Mellon said the deal was struck at the right time given the “unprecedented” interest in fixed income markets, allowing its boutiques to expand their capabilities in that area.Insight Investment chief executive and CIO Abdallah Nauphal said the purchase of Cutwater by BNY Mellon would allow Insight to build on its European brand on the back of the new US business’s “track record and experienced team”.He added: “[The purchase] will complement Insight’s strategy in the US as we build upon our existing position as a European leader in liability risk management and fixed income.“Working closely with Cutwater will augment our current fixed income capabilities, deepening our fixed income research and portfolio management expertise in the world’s biggest and most diverse credit market.”Clifford Corso, chief executive and CIO at Cutwater, added: “This union is a logical next step for Cutwater. We share a similar investment philosophy and approach designed to offer products and relevant client solutions.”last_img read more

ATP backs central clearing, warns against disproportionate regulation

first_imgThe European Commission must take care that the regulation of the derivatives market does not increase trading costs, which would risk undermining the stated aim of improving financial stability, ATP has warned.Denmark’s largest pension fund also urged the European executive to clarify its goal of offering better regulation of financial markets, and measure the success of each initiative against five criteria that could form an evaluation “diamond”.Responding to the Commission’s consultation on regulation agreed in the wake of the 2008 financial crisis, ATP praised the work undertaken to strengthen bank balance sheets for creating an overall stronger financial system.“At the same time,” it added, “ATP is concerned about the unintended consequences caused by the cumulative effect of the large amount of financial regulation introduced over a short time span.” It said the Commission’s review of financial regulation should be welcomed, and suggested all initiatives be evaluated based on how they impact the transparency, liquidity, externality, diversity and financial stability of the market – forming what the statutory pension fund regarded as a regulatory diamond.Based on the above criteria, it said the European Market Infrastructure Regulation (EMIR), which requires the central clearing of a majority of derivatives trades, was a “reasonable initiative”.It nevertheless warned that the increased reliance on central counterparties (CCPs) brought with it added challenges.“Diversity will decrease in the financial system as more and more transactions are concentrated on relatively few CCPs, and fewer banks become willing to accept the increasing costs and risks of providing clearing services as CCP members,” it said.ATP also warned that CCPs could not be relied on to balance out other financial risks remaining within the system, and said they should not be subject to more onerous capital charges than other systemically important financial institutions (SIFIs).“CCPs should not be required to compensate for lack of financial stability outside the CCP system,” the fund’s submission said, “as this will disproportionately allocate the risk between the financial institutions and potentially lead to unnecessary higher cost that might increase cost and undermine CCPs’ original objectives to increase financial stability.”A number of submissions to the Commission have focused on central clearing, with the UK’s Pensions and Lifetime Savings Association calling for an exemption for pension funds to be offered until a viable mechanism allowing the industry to clear is developed.The European Central Bank has previously called for greater regulation of CCPs to avoid significant losses when one of the “super-systemically important” bodies collapses.last_img read more

Canada Pension Plan invests $450m in oil, gas royalty firm

first_imgCanada’s largest pension fund is investing $450m (€396m) in oil and natural gas royalties through the acquisition of a majority stake in a US-based minerals company.The Canada Pension Plan Investment Board (CPPIB) said its wholly owned credit investment subsidiary would deploy the initial investment in LongPoint Minerals over the next three years.As a result, CPPIB has acquired a “significant” majority stake in the company, which has interest in royalties in 48 US states.In a statement, the CAD279bn (€191.8bn) fund said its exploitation would initially focus on the Mid-Continent Basin spanning six US states, the Permian Basin in New Mexico, and Denver-Julesburg Basin in LongPoint’s home state of Colorado. Commenting on the deal, Adam Vigna, managing director and head of principal credit investments at CPPIB said the multi-year commitment marked an “attractive” entry into the royalty sector.“In owning royalty interests,” Vigna said, “we are able to participate in production revenues without the burden of associated capital or operating costs.”He added: “We’ve partnered with LongPoint given management’s deep knowledge of these basin areas and successful proven track record spanning over 30 years of collective expertise.”CPPIB Credit Investments, has invested CAD30bn in credit markets on behalf of the fund, and also overseas its real estate debt activities.It recently participated in a €180m Romanian asset-backed bond, with properties owned by Globalworth Real Estate Investments.In March, it also revealed it was supporting the €3.7bn acquisition of LeasePlan, by a consortium of institutional investors including ATP and PGGM, with a €480m loan.For more on energy sector investments, see a recent special report in IPElast_img read more

Pension funds ‘should consult members on ESG preferences’: HLEG

first_imgPension funds should consult their beneficiaries on their sustainability preferences and reflect those in their investment decision-making – regardless of whether or not they are financially material, according to the group advising the European Commission on sustainable finance. The recommendation is one of several included in the final report from the high-profile High Level Expert Group (HLEG) on sustainable finance, a copy of which IPE has seen.In the report, due to be published tomorrow, the HLEG states: “Whether financially material or not, the preferences of clients, members and beneficiaries shall be proactively sought and incorporated into investors’ investment decision-making and the demands that they, in turn, make on the asset managers and other participants with which they interact to deliver their obligations to clients.”The section of the report refers repeatedly to “asset owners and intermediaries”, implying that the recommendations should apply to investment consultants as well as pension funds. In its final report – which reflects feedback from an interim version published in July last year – the group presents eight priority recommendations or actions (including the above statement), five cross-cutting recommendations, and recommendations for specific sectors of the financial system.“It can be argued that those who manage money on behalf of others, including pension funds, have an obligation to consult their beneficiaries on their sustainability preferences” HLEG on sustainable finance final reportThe HLEG was established by, and has the ear of, the Commission, which is developing an action plan on sustainable finance that will build on its recommendations.In a sector-specific recommendation for pension funds, the HLEG adds: “… It can be argued that those who manage money on behalf of others, including pension funds, have an obligation to consult their beneficiaries on their sustainability preferences and subsequently include such considerations in their investment strategies, if such is the preference of their beneficiaries.”The recommendation is likely to have a mixed reception among European pension funds. In responses to a Commission consultation following up on some of the HLEG’s early recommendations, some occupational pension fund associations said they were against a requirement to consult beneficiaries about their ESG preferences.The HLEG notes that IORPs are required to inform prospective members whether and how ESG factors are considered in their investment approach.A second HLEG recommendation for the pension fund industry is to explore initiatives to improve ESG integration and reporting “above and beyond what is currently required in regulation”. The Commission will present an action plan on sustainable finance on March“This would be in recognition of the new landscape of sustainability risks and opportunities and also be in the interest of sustained long-term performance,” the report says.Although not formalised as recommendation, the HLEG report also says that the European pension fund supervisor, EIOPA, would need to build expertise on including sustainability and governance factors into risk assessment. The Commission has proposed that EIOPA and the other European supervisory authorities (ESAs) take sustainability considerations into account as part of their work.“The group believes that the recommendations presented in this report provide the framework for further action,” the HLEG states. ”The result will be a more sustainable and inclusive Europe, which is able to provide prosperity for its citizens without compromising the ability of future generations to meet their own needs.“It is important to note that the implementation shall not augment the regulatory burden and complexity but facilitate more investments.” ‘Manifesto for far-reaching change’The European Commission was positive about the HLEG’s final output, with vice-presidents Valdis Dombrovskis and Jyrki Katainen describing it as “a manifesto for far-reaching change”.“Its recommendations show a way towards a financial sector that supports a more sustainable and inclusive economic system, in line with the EU’s environmental and social objectives,” they added. “The report is globally relevant, and we encourage other countries to make use of the recommendations to inform their own policy choices and help build sustainable finance at the international level.”The priority actions the HLEG has recommended are to:Introduce a classification system to establish market clarity on what is green or sustainable, starting with climate change.Clarify investor duties “to extend time horizons and bring greater focus on ESG factors”. Requiring consent on sustainability issues within institutional client relationships is essential, according to the HLEG.Upgrade disclosure rules to make climate change risks and opportunities fully transparent.“Empower and connect Europe’s citizens with sustainable finance issues”, via better access to information on sustainability performance and improving financial literacy.Develop official European sustainable finance standards with green bonds.Establish a facility – Sustainable Infrastructure Europe – to expand the size and quality of the EU pipeline of sustainable assets. “An at-scale solution is needed where existing public institutions and initiatives are used with maximum effect,” the HLEG said.Reform the governance and leadership of companies to build sustainable finance competencies. Strengthening director duties and stewardship principles were recommended as steps in that direction.Enlarge the role and capabilities of the ESAs to promote sustainable finance as part of their mandates.last_img read more

Infrastructure, equities returns boost PensionDanmark’s 2017 result

first_img“The year’s return on infrastructure of almost 13% is partly due to the nice return from the funds managed by Copenhagen Infrastructure Partners (CIP), which handles most of PensionDanmark’s investments in renewable energy,” he said. PensionDanmark made a near-10% return on investments for its younger scheme members last year, with profits driven in particular by gains on infrastructure and listed equities.The labour-market pension fund, which caters largely for Denmark’s blue-collar workers, reported a DKK16.6bn (€2.2bn) overall pre-tax investment return, up from DKK13bn the year before.Torben Möger Pedersen, PensionDanmark’s chief executive, said: “Shares benefited particularly well from the year’s positive development in the global economy.”While listed equities had produced the highest return of the year, investments in unlisted shares, property and infrastructure had also contributed to driving the total return higher, he said. Copenhagen Infrastructure Partners’ investments include offshore wind farmsCIP – set up by senior executives from Dong Energy in partnership with PensionDanmark – celebrated its fifth anniversary earlier this month. It is currently raising money for its third infrastructure fund.PensionDanmark made a 9.9% return for 2017 on investments for members aged less than 41, and 6.9% for those aged 65.This compares to 7.1% and 7.3% respectively in the previous year. The strongest performer among PensionDanmark’s asset classes was listed equity, which returned 13% over the year, or DKK8.9bn in absolute terms.Corporate bonds and loans returned 5.2% and Danish government bonds and mortgage bonds made a 3.3% return for the pension fund.In other asset classes – categorised by the pension fund as “non-market orientated investments” – infrastructure produced a 12.8% return last year, or DKK2.5bn in absolute terms.Real estate, meanwhile, generated 9.5% and private equity produced 10%, or DKK621m.Infrastructure and renewables make up around 10% of PensionDanmark’s investment portfolio, according to figures for the end of June 2017, while real estate accounts for a 7% slice.No new figure was given for total assets, but the pension fund managed DKK224.1bn at the end of June 2017.last_img read more

Mareeba makes a case for why it’s FNQ’s best suburb to live in

first_imgA boat travelling over a lagoon at the Tropical Wetlands in Mareeba PIC: Mark Fraenkel Forever Wild, Tropical Wetlands, Mareeba WetlandsBEING perfectly positioned between country life and city flare is the main reason residents set up camp at Mareeba. The Atherton Tableland town sits 417m above sea level, keeping the town cool during the summer months. The population is increasing steadily in the Tablelands hub, jumping from 6806 in the 2006 census to 10,181 in the 2011 census. The most recent census in 2016 also showed the suburb has the largest Italian Australian community out of any town in Queensland. More than 1600 census respondents identified as Italian Australian, making up 10.8 per cent of the population. More from newsCairns home ticks popular internet search terms2 days agoTen auction results from ‘active’ weekend in Cairns2 days agoDavies Creek is an idyllic setting just outside of Mareeba. PICTURE: DARYL EDWARDSThe town is an ideal location for families, as it has two primary schools, two secondary schools and a TAFE campus. St Thomas of Villanova Parish School and Mareeba State School serve students from preschool to grade six, while Mareeba State High School and St Stephen’s Catholic College cater for high school students. The country town also boasts its own health facility, with the Mareeba Hospital providing 52 beds and care for surgical, maternity, paediatric, outpatient and emergency care. There are plenty of events where you can meet the neighbours in Mareeba. The annual Mareeba Rodeo draws visitors from neighbouring Atherton Tableland towns and from Cairns and surrounds. It’s hosted every year at the Kerribee Park Rodeo Grounds, a purpose-built amenity. The FNQ Country Music Festival and Talent Search is also held at Kerribee Park Rodeo Grounds. Every year the Catholic residents celebrate the Feast of Our Lady of the Chain. The celebration is held on the second Sunday of September each year and involves a procession through the streets of Mareeba before a fireworks display. The town is surrounded with plenty of swimming holes, including popular spot Davies Creek, and also hosts the Mareeba Markets on the second and fifth Saturday each month. The event is held at Mareeba’s Centenary Park on Byrnes St next to the Heritage Museum and showcases arts, fresh produce, birds for sale and more.last_img read more

Melbourne developers list Hamilton Island holiday home

first_imgAerial view over the Whitsundays. Photo : Daryl; WrightThe house has sweeping verandas to soak up the views, with a barbecue on the upper deck for alfresco dining. The upper level has two master bedrooms with their own en-suite and spa.On the lower ground level there is a further two generous bedrooms.The Vue features a modern, well-equipped kitchen with a range of quality appliances, a pool, and many other features. “There’s a limited supply of high end holiday rental homes on Hamo, so The Vue’s popularity generates in excess of $200,000 a year in rental income annually and our family are still able to holiday there at least three times a year,” he said. The view from The Vue“We have been going to Hamilton Island for the last 20 years as we love boat cruising and the tranquillity of the Whitsundays, so it’s been perfect to have a home to come back to after a few days on the water,” Mr McMahon said.“Hamilton Island truly is a great escape and it’s even better in reality than in your dreams. We have been privileged to own a home on Australia’s most prestigious holiday island.”More from newsParks and wildlife the new lust-haves post coronavirus15 hours agoNoosa’s best beachfront penthouse is about to hit the market15 hours agoWhen not in use by the family, who are keen boating enthusiasts, the stunning three-level modern residence has been listed on various holiday booking sites. The house can sleep 10 guests.It has four bedrooms and three bathrooms, and sits on a 1161sq m block overlooking the Hamilton Island Marina and out to the Coral Sea.It is listed for sale with Ray White Whitsundays, with agent Anita Edgar labelling it one of the “most secluded and private luxury homes” on the tropical island.center_img Andrew and Jenni McMahon of Panorama Developments have listed their stunning Hamilton Island holiday home.THEY are behind a number of luxury residential projects in Melbourne — a city known for its unpredictable weather.So it probably shouldn’t come as a surprise that when they are not building skyscrapers, they are relaxing at their holiday home on laid-back Hamilton Island in the Whitsundays.But the time has come for property developers Andrew and Jenni McMahon of Panorama Developments to sell their incredible home-away-from-home and investment property, The Vue.last_img read more

Paddington market remains strong

first_imgThe kitchen has a modern twist.Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 6:04Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -6:04 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 Rate1xFullscreenFebruary: Brisbane CoreLogic RP Data market update06:05 Inside 241 Baroona Rd, Paddington.According to CoreLogic Data, the median house sale price for Paddington was $1.15 million, which had experienced a 12.2 per cent increase in the 12 months to October 2018.More from newsParks and wildlife the new lust-haves post coronavirus14 hours agoNoosa’s best beachfront penthouse is about to hit the market14 hours agoThe bedroom has classic features, from detailed fretwork to VJ walls.Place Paddington agent Sacha Hennessy said about 80 groups had inspected the property throughout the campaign and “multiple offers” had been received.“It was a classic Queenslander but had a modern twist to the renovation and appealed to the full gamut of buyers from young couples to rent-vesters,” Ms Hennessy said.“The luck buyers were a couple from interstate … who were predominantly looking in the area.” The bathroom follows suit, with coloured rolled glass windows.The 120-year-old home had been recently renovated.Ms Hennessy said Paddington continued to perform strongly.“It’s a very solid performer, and it is attractive to not just locals but interstate buyers because of its proximity to good schools, cafes and the city,” she said.center_img The house at 241 Baroona Rd, Paddington, sold for $1.6 million.A CHARACTER home at Paddington has sold for interstate buyers for $1.6 million.The sale of 241 Baroona Rd was $450,000 more than the suburb median sale price.last_img read more

Construction baron sells riverfront pad

first_imgRay White Sherwood and Graceville principal Cameron Crouch said the private oasis felt like it was a world away from everything, yet it was very central and only 4km to Brisbane CBD.“The property is so close to the University of Queensland, three of Brisbane’s major hospitals and a number of primary and secondary private schools,” he said. 51 Brisbane Corso, FairfieldThe wow factor starts immediately, with the entry leading in to a resort-style tropical paradise with a Balinese inspired covered walkway and water features. Now retired from the construction industry Mr Beech, and his wife Liz Ralston, are looking to downsize and looking forward to going travelling in the future.More from newsParks and wildlife the new lust-haves post coronavirus13 hours agoNoosa’s best beachfront penthouse is about to hit the market13 hours ago “We are definitely looking for a lock up and go type of home next so we can get the caravan and go and visit places like the Mataranka thermal springs in the Top End again,” he said.“We bought 51 Brisbane Corso in 2011 and it was in bad shape but it always had great bones. “There was no floors and the house had been gutted to a shell. “Given I had just retired, I obviously needed a project but it was definitely a more extensive build than I was expecting, however it turned out to be terrific.” Owner Bob Beech of Beech Constructions is selling his Fairfield home.HIS company has been behind the construction of many commercial projects around Brisbane, and now his own labour of love is up for grabs.Owner Bob Beech of Beech Constructions is selling his stunning, riverfront four bedroom home at 51 Brisbane Corso at Fairfield – a property he bought at auction seven years ago and undertook a massive 12-month build to transform the property into a tropical oasis. Mr Beech said the couple had been living up the road for 30 years and he had just finished a project. He said he knew the area and the house and so went to the auction and bid. “The view of the river is one you’d never get tired of,” he said. “It’s on such a great bend of the river, the view is magic and it’s been a terrific home for us but it’s now time for us to downsize.” Mr Beech said they had held parties for more than 130 people so the house was made for entertaining. Ray White Sherwood agent Michael Nolan said this property had everything you could possibly want, totalling 524sq m of floor area over three levels. Key features include a separate master bedroom retreat that encompasses the whole upper level with stunning river views, four spacious bedrooms each with a fully appointed bathroom, an outdoor garden shower, a large kitchen with stainless steel and granite benches, built-in bar fridges, and quality appliances, a striking timber internal staircase, a private pontoon and a double lock-up garage with a workshop and storage plus a double carport.“It has a functional layout with the designer kitchen as the central hub to expansive indoor/outdoor entertaining areas, pool and the family TV room,” Mr Nolan said. “There is plenty of space for the whole family to enjoy individual pursuits amidst these expansive proportions.”last_img read more