Dutch giant PMT to divest holdings in ‘expensive’ hedge funds

first_imgThe pension fund reported combined returns for alternatives, including private equity and infrastructure, of 2.8% over the first six months of 2014.At the same time, the metal scheme announced that it would invest €1bn in Dutch residential mortgages, through the Dutch Mortgage Funding Company (DMFCO), established last year.Inge van den Doel, PMT’s director of asset management, said: “This investment will generate a decent return against an acceptable and verifiable risk.“Investment through the DMCFO offers pension funds the option to solely invest in the type of mortgages that suit their specific policy requirements.“Because several pension funds have joined the initiative and combined their requirements, the DMFCO can offer a full mortgage product.”Meanwhile, PGB, the €16bn pension fund for the printing industry, today announced that it would also invest €500m in Dutch residential mortgages through the DMFCO. PGB trustee Rob Heerkens, responsible for investments, said: “Dutch mortgages are an attractive investment, as they carry a limited risk whilst offering better returns than, for example, Dutch government bonds.”PGB said the €6.7bn pension fund of steelworks Hoogovens had also committed itself to a substantial investment to DMFCO.By committing to the Dutch Mortgage Funding Company, the pension funds have effectively foregone investing in Dutch residential mortgage bonds, soon to be launched by the National Mortgage Institution (NHI).Annemieke Biesheuvel, spokeswoman for PMT, said: “By investing through the DMFCO, pension funds can follow their intended risk/return profile precisely, and won’t be dependent on what the NHI would offer.”The NHI had indicated it would aim at issuing €50bn worth of mortgage bonds for institutional investors. PMT, the €55bn pension fund for Dutch metal workers, has said it will fully divest its €1bn hedge fund allocation in favour of investments in local residential mortgages.Following an extensive analysis of its hedge fund holdings, the pension fund concluded that an active management style in “markets with many players” no longer matched its investment beliefs.It also cited the fact the management cost for its hedge fund portfolio accounted for no less than 32% of its entire asset management costs of 0.54% of assets.PMT said its chief purpose in having a hedge fund allocation – to spread investment risk – no longer carried sufficient weight, particularly in light of the “slightly positive” returns it generated.last_img read more

Friday people roundup [updated]

first_imgUniversities Superannuation Scheme, National LGPS Framework, Norfolk County Council, De Nederlandsche Bank, ASR Financial Markets, CFA Society Netherlands, Hunter Douglas, Martin Currie, Sarasin and Partners, Aegon, Prudential, LGIM Real AssetsUniversities Superannuation Scheme – USS has grown its private markets team, hiring six new staff, including one from BP UK’s in-house manager. Anna Barath, Diogo Belo, Fabienne Trevere, Hesham Hussein and Tom Kelly have joined USS Investment Management as analysts, while Emma Singh has been hired as an associate to help manage the direct portfolio. National LGPS Framework – Norfolk County Council has appointed Nigel Keogh as development and operations manager for the local government pensions scheme (LGPS) national framework initiative, a collaborative effort by more than 20 of the funds for joint procurement. The new position will be fully funded from the savings of the initiative. Keogh is currently pensions technical manager at the Chartered Institute of Public Finance and Accountancy, which he joined in 2006. He will take up his new role at the beginning of 2016.De Nederlandsche Bank (DNB) – Nicole Stolk has been appointed secretary-director at the Dutch regulator, becoming responsible for internal business. She will start in her new role on 1 February. Stolk is currently deputy secretary-general at the Ministry of Security and Justice. She is to succeed Femke de Vries, who left DNB to join the board of communications at the Netherlands’s other supervisor, the Financial Markets Authority (AFM). ASR Financial Markets – Hedwig Peters has been appointed head of fiduciary management. In recent years, Peters has been active in board and supervisory roles at a number of Dutch pension funds, including the schemes for public transport (SPOV) and the recreational sector (Recreatie), and for the company Sabic. Between 2006 and 2010, she served as CIO at Allianz Netherlands. Peters is currently a board member of the Pensioenfonds HaskoningDHV.CFA Society Netherlands – Jacco Heemskerk has been voted chairman of the forum for investments, economics and finance. Heemskerk succeeds Hilko de Brouwer, who has been at the helm of the CFA for the last seven years. Heemskerk is managing director of the Dutch pension fund of Royal Bank of Scotland.HunterDouglas – Rik Albrecht, a fiduciary investment consultant, has been appointed chairman of the investment committee of the pension fund of Hunter Douglas. Albrecht is already a member of the supervisory board (RvT) of Syntrus Achmea Real Estate & Finance, as well as chairman of the investment committee for Owase, the pension fund of the employers association of same name.MartinCurrie – Mark Whitehead has been appointed to the newly created position of head of equity income. He joins from Sarasin and Partners, where he was head of equity income team and lead portfolio manager for the global equity income range.Aegon – Allegra van Hövell-Patrizi has been named chief risk officer at Aegon, responsible for risk management, actuarial matters and internal re-insurance. She joins from Prudential, where she held a similar position.LGIM Real Assets – Declan O’Brien has been appointed as an infrastructure strategist, while Enrico Faccioli has been hired as a research analyst, and James Davies as a property fund analyst. O’Brien joins from Moody’s Investors Service, while Faccioli is a recent graduate of Warwick Business School. Davies joins from Cushman & Wakefield.last_img read more

Independent review considers calls for UK audit regulator to be shut down

first_imgCredit: Liberal DemocratsBaroness Sharon BowlesBaroness Sharon Bowles, a member of the UK parliament’s upper house and former chair of the European Parliament’s Economic Affairs Committee, also submitted evidence to the Kingman review.In it, she echoed the LAPFF’s call to put the FRC, or its replacement, on a statutory footing with full accountability to parliament and an explicit duty to act in the public interest.She also called for the watchdog to be stripped of its responsibility for accounting and auditing standards, arguing that this conflicted with its regulatory oversight functions, creating a “toxic feedback loop”.Baroness Bowles also accused the FRC of being a “cheerleader for things in both IFRS and in company law that have caused the kind of problems that are coming to light”.FRC supportThe embattled organisation has, however, received backing from other bodies for it to continue in its role as the UK’s audit and corporate governance regulator.In its submission to the Kingman review, the Institute of Chartered Accountants of England and Wales (ICAEW) argued that the FRC was “the right body” to “represent the UK’s interests and to promote international regulatory and investor confidence in accounting, auditing and corporate governance in a post-Brexit world”.In contrast to other respondents, the ICAEW rejected the charge levelled at the FRC by politicians in the wake of the collapse of outsourced services provider Carillion that the watchdog’s oversight was characterised by “feebleness and timidity”.The institute argued: “On the contrary, we have encountered examples of FRC firmness over the years, and there have been moments of marked disagreement between us. The FRC’s enforcement team has, in our view, on occasion demanded excessive sanctions.” Local authority pension schemes have urged the UK government to break up the Financial Reporting Council (FRC) and make its successor bodies subject to full parliamentary scrutiny.In a submission to the panel currently reviewing the audit watchdog’s future, the Local Authority Pension Fund Forum (LAPFF) said the FRC was beyond reform and riddled with conflicting objectives.The submission – seen by IPE – said: “The central matter is upholding the public interest. The outcome must involve parliament… The regulatory model should be first and foremost implementing the laws that parliament has already passed. Parliament and the courts determine what the public interest is.”The submission went on to warn that the “risk of bodies being buried” was sufficient reason to scrap the FRC to avoid passing on a toxic legacy to its successor. Among the risk elements singled out by the LAPFF were conflicts of interest, potential breaches of public procurement rules for legal services, and potential claims against the FRC for regulatory failings.LAPFF members told the review – led by top civil servant Sir John Kingman – that they wanted to see the FRC’s existing responsibilities for accounting standards, enforcement and corporate governance hived off into separate bodies on a statutory footing.center_img Credit: Liam MustaphaPwC was charged following the bankruptcy of BHSIn response to criticism that it is too soft on those it regulates, the FRC has recently beefed up its disciplinary processes. In June, it fined and reprimanded auditors PwC and the firm’s former partner Steve Denison over shortcomings in the 2014 audits of BHS and its parent company Taveta.An FRC spokesperson told IPE: “The FRC awaits with interest Sir John Kingman’s final recommendations after he has concluded his review of all the submissions to his inquiry. We are not commenting on any individual responses to the inquiry.”Both PwC and KPMG declined to release their submissions to the Kingman review. Neither EY nor Deloitte responded to a request for their submissions.  According to a document obtained by IPE from the UK’s Department for Business, Enterprise and Innovation, which sponsors the FRC and its activities, the inquiry has no plans to publish submissions to the inquiry.The Kingman review is expected to publish its findings in the coming months.Other submissions to the review include contributions from the Association of Accounting Technicians and the UK Shareholders’ Association.The Kingman Review of the FRC’s role was announced in April following a wave of criticism of the accounting industry regulator. It was accused of a number of conflicts of interest and of being too close to the companies it polices to be an effective deterrent and watchdog.Last year, IPE reported how the FRC had been attempting to avoid classification as a public body since 2004, and so avoid many of the disclosure rules this would involve. This prompted dozens of questions to the government regarding the FRC’s operations from Baroness Sharon Bowles.last_img read more

Freshly renovated Mount Gravatt home ready for a new family

first_imgThe pool was a drawcard for the Orths.Mr Orth said the location of the property and its pool was a drawcard when they initially bought the home with the intention of renovating it.“I could see the potential,” Mr Orth said.“We added an extra bedroom and bathroom, painted inside and out, put in a new kitchen and renovated the second bathroom.” More from newsParks and wildlife the new lust-haves post coronavirus15 hours agoNoosa’s best beachfront penthouse is about to hit the market15 hours agoWalls were ripped out and replaced, as was wiring.He said they also undertook tasks such as replacing the walls with gyprock, polishing timber floors and replacing wiring.“We really wanted something that wouldn’t age, something that would always look nice and fresh and bright,” he said. A free standing tub was a must for Mrs Orth.Mr Orth said a freestanding bathtub in the ensuite was a must for his wife, and said the completely white kitchen was strategic.“With a white kitchen, you can bring other colours in through your appliances,” he said. The house at 40 Verbena St, Mount Gravatt, is for sale.THE interior of this Mount Gravatt home is barely recognisable after an intensive makeover.Sam and Bianca Orth bought the 40 Verbena St house about 18 months ago, with the intention of making it their family home.Due to unforeseen circumstances, they need to relocate, which means someone else can now have the opportunity to live in their freshly renovated home. The couple strategically decided on an all-white kitchen.The master bedroom was Mr Orth’s favourite room.“When the electric shutters are open, you get a view of the pool and the forest, but when it’s dark you could sleep for three days.“It also has its own sliding door onto the deck.”The couple loved the location, with the property backing onto Mount Gravatt Outlook Reserve.“Every weekend we would walk out the back gate and walk up to the top of the Mount Gravatt lookout. It’s also very close to the M1, shops and schools.”Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 0:37Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:37 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 Rate1xFullscreenWhy moving to a ‘sister suburb’ can save you money00:37last_img read more

Clayfield house to be demolished to make way for “monster”

first_imgAgent Emil Juresic bought the property on behalf of his family company, NGU Corp Luxury Developments.It was the first time the post-war house had been on the market in 34 years, and more than 50 people turned out to watch it go under the hammer.Quickly after Ray White Queensland’s chief auctioneer Mitch Peereboom opened the auction a bid of $700,000 was yelled from the crowd.Another bidder swiftly raised that figure to $800,000, before Mr Juresic chimed in with a bid of $1 million.Some of the 13 registered bidders threw in smaller bids of $25,000 and $10,000, but their efforts were futile, with Mr Juresic continually raising the price with little hesitation. More from newsParks and wildlife the new lust-haves post coronavirus13 hours agoNoosa’s best beachfront penthouse is about to hit the market13 hours agoThere was a semi-enclosed sunroom at the front of the house.Mr Peereboom called a break on the auction at $1.16 million, before he came back and announced the house on the market at $1.2 million, with Mr Juresic again in the lead.A male duo threw in a number of $10,000 bids, however, bowed out of the competition when it became evident Mr Juresic was not going to surrender.The house sold under the hammer to Mr Juresic for $1.25 million — a staggering 14 times what it was last sold for.According to CoreLogic data, the house was last purchased in 1985 for $85,000. Queensland’s most ‘clicked’ properties of 2018 Emil Juresic’s company also built this house at 7 Ashfield St, East Brisbane.The marketing agent Shenal Yigitbas, of Ray White Ascot, said the sale had been an emotional one for the vendors as the property was a deceased estate, but they were pleased with the outcome.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 Inside 10 Union St, Clayfield.Mr Juresic said he had bought the property under the name of his family’s company, NGU Corp Luxury Developments, and planned to build a house that would attract a multimillion-dollar price tag.“We have built a beautiful home at 7 Ashfield St, East Brisbane, that we sold for $4 million, and we are going to probably build a home very similar to that on this block of land,” Mr Juresic said.“The street is fantastic and I don’t think there is enough good product for people to buy (in Clayfield) when it comes to really high end.“Here we have to build something that is going to complement the street (and) here there are a lot of character homes as well, so that is why we are going to build a monster.” The property at 10 Union St, Clayfield, sold for $1.25 million.A Clayfield house will be bulldozed after it was bought by local real estate agent and property developer Emil Juresic at auction on Saturday.Mr Juresic has vowed to knock the 10 Union St house and build a modern “monster” in its place.last_img read more

Stolt-Nielsen Collects USD 175 Mn from Bond Issue

first_imgOslo-listed shipowner Stolt-Nielsen has managed to collect up to USD 175 million from its latest senior unsecured bonds placement.Net proceeds from the bond issue are set to be used for the refinancing of outstanding bonds and general corporate purposes.The company completed the placement of senior unsecured bonds in the Nordic bond market in a new 5-year bond issue carrying a fixed coupon of 6.375%. Stolt-Nielesen informed that the placement was oversubscribed.The shipowner added that the settlement date for the bonds will be September 21, 2017 and the maturity date will be September 21, 2022.Additionally, an application will be made for listing the bonds on the Oslo Stock Exchange as soon as possible.Danske Bank, DNB Markets, Nordea and Swedbank acted as joint lead managers for the bond issue.last_img read more

Shell completes $1B acquisition of Turritella FPSO

first_imgShell has taken over the ownership of the FPSO Turritella, moored at the Stones field in the U.S. Gulf of Mexico.The takeover, ending an operational transition period, follows a previously announced agreement with the SBM Offshore-led consortium owning the FPSO.“Both companies have worked successfully together to ensure a safe and controlled handover of operations,” SBM Offshore, the world’s largest FPSO supplier said in Tuesday.The FPSO Turritella is being used to produce oil from Shell’s Stones field in the U.S. Gulf of Mexico, considered the world’s deepest FPSO development.In previous statements SBM Offshore said the acquisition would allow Shell to assume operatorship of the Stones development in its entirety, creating additional efficiencies through integration of sub-sea to surface operations and allowing leverage of its optimized Gulf of Mexico organization and infrastructure.Shell paid around $1 billion for the acquisition. The FPSO Turritella has been on hire since September 2, 2016 and forms an early phase in Shell’s Stones development.The Stones development is located in 2,896 meters (9,500 feet) of water approximately 320 kilometers (200 miles) offshore Louisiana in the Walker Ridge area.FPSO Turritella is the deepest FPSO development in the world and has a turret with a disconnectable buoy allowing it to weathervane in normal conditions and disconnect from the FPSO upon the approach of a hurricane.Offshore Energy Today Stafflast_img read more

Marella Explorer Launched in Majorca

first_imgImage Courtesy: TUIUK-based Marella Cruises has launched its newest cruise ship, Marella Explorer, following the vessel’s refurbishment process. The launching ceremony was held in Palma, Majorca, on May 17.Speaking on the occasion, Chris Hackney, Managing Director of Marella Cruises, said: “The launch of Marella Explorer marks an exciting time for us as she is the first ship to officially launch under the Marella Cruises name.”The 76,998-ton Marella Explorer, previously known as Mein Schiff 1, underwent a four-week refurbishment in Cadiz, Spain.At 265.5 meters long and 32.2 meters wide, Marella Explorer is the biggest ship welcomed so far into the Marella Cruises fleet. The 1,924 capacity ship (double occupancy) boasts 962 cabins and spans 13 decks.The cruise vessel set sail on its maiden customer voyage on May 19 to visit a variety of ports in the Mediterranean such as Villefranche, Barcelona and Naples.Marella Cruises, part of TUI UK and Ireland and TUI Group/World of TUI, is the third largest cruise line in the UK. Following the recent addition, its fleet now comprises six ships — Marella Explorer, Marella Discovery, Marella Discovery 2, Marella Dream, Marella Celebration, and Marella Spirit.last_img read more

Schulte Group Launches New Maritime Fund Manager

first_imgGerman shipping company Schulte Group has launched a new maritime fund manager, Hanseatic Capital Management (HCM).The fund manager has an investment focus on maritime real assets, specifically merchant vessels.HCM will concentrate on a commercially balanced employment strategy, which will include both shorter and period charters, depending on the vessel segments.The first fund to be launched, Hanseatic Fund VCIC Plc, aims to initially raise USD 120 million.Applying a strong focus on investor protection at all times, its investment goal is on Handysize and Supramax bulk carriers and feeder-sized container vessels aged between four and 15 years. Other types of tonnage or different sizes will be considered as well.Hanseatic Fund VCIC Plc will be regulated as an Alternative Investment Fund (AIF) by the Cyprus Securities and Exchange Commission (CySEC) in line with the relevant EU directives.The units of the Hanseatic Fund VCIC Plc also qualify as an eligible investment for the ‘Scheme for Naturalization of Investors in Cyprus by exception’, issued by the Republic of Cyprus. It therefore offers an investment opportunity in an asset class with great scope for diversification, which previously was not available under this scheme.last_img read more

Aker BP takes Prosafe flotel for Ula platform support

first_imgSafe Scandinavia – Image source: ProsafeOffshore accommodation specialist Prosafe has won a contract for one of its flotels in Norway.The Safe Scandinavia accommodation unit will be working for Aker BP in the Norwegian part of the North Sea. The flotel will be providing accommodation support at the Ula offshore platform.The firm duration of the contract starting in mid-August 2018 is seven months with eight one-month options.The total value of the contract, excluding the option periods, is around $25.5 million. The option periods, if exercised, have a total value of approximately $36.7 million.The contract will ensure employment of the Safe Scandinavia soon after the expiry of her previous contract that concluded end-June 2018.Jesper Kragh Andresen, CEO of Prosafe says: “Prosafe is very pleased with this contract, as it provides employment for the Safe Scandinavia for up to 15 months. We are also proud to again be chosen by Aker BP, this time to deliver first class safe and efficient accommodation services at the Ula platform.”According to info on Prosafe’s website, the Safe Scandinavia has been operating as a Tender Support Vessel since March 2016. The company has said that with minor modifications, the vessel will also be capable of conducting Plug & Abandon, Well Intervention and Decommissioning projects.last_img read more