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Month: September 2020

Bulk annuity market set for expansion as Aviva returns, LV= looks to enter

first_imgSources close to the market confirmed to IPE Aviva’s intention to begin pricing single buy-in and buyout deals of up to £200m of liabilities.Any single deal of this size would outstrip the insurer’s total business for 2013.According to consultancy LCP, Aviva wrote £143m in bulk annuity business in 2013 and £187m in the year before.In the 2010-11 financial year, before its retreat from the market, the insurer wrote nearly £2bn in business.A statement from Aviva said the company was still working through the changes announced in the Budget.“Our business is generally targeting the smaller end of the market [up to £50m], but we will write larger business where there is a clear business case to do so,” it added.Two sources also detailed conversations with LV= regarding its entry into the bulk market, and the medically underwritten space.One source said: “LV= is looking at the market and spoken to people about offering bulk annuity deals.”A statement from LV= said: “We review our business regularly. We’re still looking at the fall-out from the Budget, and making sure we can still offer individual propositions that we think the market requires.”The move by the insurers is only the beginning of a trend according to several market commentators, in stark contrast to recent years, which saw Aviva scale back its writing, consolidation of Lucida into Legal & General, and a retreat from US insurer, MetLife.As economic conditions led to better pricing, business levels in the bulk annuity space reached record levels in 2013, with the current year expected reach £20bn, according to LCP.Improved scheme funding levels on the back of equities and rising yields have also led UK pension funds and sponsors to look at bulk annuity options for de-risking. General insurer, Aviva is expected to quadruple its limit on bulk annuity deals to £200m (€244m) as LV= is set to enter the market for the first time.Both moves come after the UK government scrapped the forced annuitisation of defined contribution (DC) pots, leading to fears of a drop-off in the individual market.Aviva in 2012 announced it would reduce its writing capacity in the bulk annuity market to £50m, having enjoyed 20% of the market (c.£2bn) in the previous two years.However, as last month’s Budget heralded a potential decline in individual annuity sales – by as much as three-quarters according to insurer Legal & General – Aviva and LV= have begun shifts into the potential £20bn a year bulk space.last_img read more


Trustees must ‘sing from same hymn sheet’ on codes of conduct

first_imgTrustees and pension fund managers have been urged to ensure they are “singing from the same hymn sheet” and draw up codes of conduct governing the receipt of gifts and how to handle placement agent fees.Howard Sherman, head of corporate governance product development at MSCI, told the current issue of IPE there was the temptation for asset managers “to do whatever it takes” to win clients.He said it was therefore important for pension trustees and management staff to know whether gifts needed to be disclosed to ensure decisions were “based on merit”.Barry Mack, partner and head of governance at Hymans Robertson, agreed with Sherman’s assessment and called for a code of conduct be drawn up for each fund. “There may already be a tacit consensus as to what constitutes appropriate behaviour, but, until something is written down, pension fund staff may actually not be all singing from the same hymn sheet,” he said.“If you’re invited to something you couldn’t afford yourself, there is clearly a risk of undue influence. Therefore, you probably shouldn’t accept it.”However, the Hymans Robertson partner added that there would be different levels of affordability depending on the pay grade of the affected employee, meaning this would need to be taken into account.Their comments come in the wake of a number of governance scandals across Europe, including most recently the resignation of Keva managing director Merja Ailus.In the wake of her resignation last year, the Finnish government published details of a new law for disclosure of potential conflicts of interest.Problems have also occurred in other countries, including in Switzerland.Michael Valentine, investment consultant at Towers Watson in Zurich, said it made sense for pension funds to check whenever there was uncertainty that their current protection was “adequate”.For more on codes of conduct, see the current issue of IPE magazinelast_img read more


ABP to introduce ‘carbon budget’ for asset managers

first_imgShe made clear, however, that the scheme would still divest holdings if engagement ultimately failed.At present, ABP has approximately €100bn invested in listed companies.Meijer reiterated that the scheme wanted governments to follow “stable policies” for the long term.“We want a pleasant and liveable world for our participants,” she said, “and this requires measures against climate change.”She called for the abolition of government subsidies for fossil-fuel energy, as well as a more effective means of pricing carbon.She also demanded “fair competition” between fossil and renewable energy.“Only then can we invest a larger share of Dutch pension assets in a way that counters climate change and contributes to a better world,” she said. ABP recently announced that, over the next five years, it plans to double its current €29bn stake in companies providing “solutions” to social and environmental problems, such as water scarcity, flooding, commodity shortages and waste processing. This commitment includes a fivefold increase in sustainable-energy investments to €5bn. ABP, the €345bn pension fund for Dutch civil servants, is to introduce a “carbon budget” for asset managers as a means of cutting equity-holding CO2 emissions by 25% over the next five years.Speaking at the climate summit in Paris, José Meijer, the scheme’s vice-chair, said ABP would add the carbon budget to the financial target and risk budgets for asset managers.By reducing ABP’s carbon allowance annually, the scheme hopes to encourage asset managers to tackle carbon emissions at polluting companies, as well as prioritise investments in “clean” companies.Meijer said ABP would redouble efforts to engage with companies that had the potential to increase their sustainability significantly.last_img read more


UK fund managers publish cost transparency proposal

first_imgThe UK’s Investment Association (IA) has proposed a new cost disclosure framework, including transaction costs and securities lending revenues.In a consultation published today, the fund management trade body presented a “common data engine” to provide a measure of asset management costs to multiple stakeholders and regulatory bodies.The proposal comes as the fund management sector faces intense scrutiny of management costs and transparency regarding expenses incurred in portfolio management.The IA has put forward templates for disclosure of costs and “contextual information” – including performance, trading volumes, and turnover – for pooled funds and segregated mandates. The proposals are designed to comply with current UK disclosure rules, as well as impending new regulations such as MIFID II, which will require greater transparency regarding investment research.They also take into account UK rules related to defined contribution pension scheme charges, and the requirements of local government pension schemes, the IA said.#*#*Show Fullscreen*#*# The Investment Association’s cost disclosure template for pooled fundsThe trade body added that the proposals would “adapt as necessary” to the outcomes of the FCA’s asset management market study. In last year’s interim report, the UK regulator criticised “weak” competition on price and a lack of transparency across the sector. The FCA’s final report is due out later this year.Jonathan Lipkin, director of public policy at the IA, said: “The new code provides for the first time a common framework for enhanced disclosure across investment products and services. It is a major opportunity to consistently define and provide data on charges and transaction costs.”He added that the IA would seek “regulatory recognition” for its code within the regulator’s rulebook, known as the Conduct of Business Sourcebook.The IA is seeking responses by 19 May 2017 with a view to publishing its full proposal in Q3 2017.The IA’s paper can be accessed here.center_img The Investment Association’s cost disclosure template for segregated mandates#*#*Show Fullscreen*#*#last_img read more


Dutch schemes’ recovery paths exceeded expectations in 2017

first_imgHowever, the watchdog noted that schemes’ recovery paths were lagging behind the improvement pension funds expected when they set their plans in 2015.Based on this recovery path, coverage ratios should have been 113% on average at the end of 2017, it said. Dutch pension funds have exceeded the assumptions made in their recovery plans for 2017, according to supervisor De Nederlandsche Bank (DNB).Funding of the sample of 157 schemes – weighted for assets under management – improved from 100% to 107% on average, which is 3.1 percentage points more than expected, the regulator said.It attributed 1.8 percentage points to returns exceeding assumptions and the remainder to the positive impact of higher interest rates on liabilities.In May 2017, DNB warned that pension schemes’ assumptions for returns were too high. De Nederlandsche BankIn an evaluation of the 157 recovery plans for 2018, DNB found that expectations for returns were similar to last year’s assumptions.It added that the current contribution level would again have a negative impact on schemes’ funding.Despite the average funding improvement, DNB also noted that differences between the health of pension funds remained significant.It said that 25 schemes – with 300,000 participants in total – were able to grant full indexation of benefits. However, the coverage ratios of 47 pension funds, with 10m participants combined, were still short of the required minimum of 104.2%.The latter category included four of the Netherlands’ largest funds: civil service scheme ABP, healthcare pension fund PFZW and the metal industry schemes PMT and PME.In its analysis, DNB said that pension funds with high funding ratios tended to follow a conservative investment policy, with a 43% stake in securities on average and a 72% hedge of the interest rate risk on their liabilities.In contrast, under-funded schemes had a more aggressive investment approach, with 62% of their assets invested in securities and an interest rate hedge of 32% on average.last_img read more


The Misled Compound with motocross track at Jimboomba hits the market

first_imgUpstairs is parent’s retreat.Mr Sue-See said he would enjoy it if a buyer could keep the motocross track, but said it was not a deal-breaker.“I’d love it to be (bought by someone who would keep the tracks), but if I have to flatten the jumps, I will, if it’s going to be a problem for anyone.” The feature walls are a concrete render.Mr Sue-See started renovating the two-level house about six months ago, and has completed everything himself apart from the electrical and plumbing work.“I was a concreter and now I’m a builder,” he said.“Everyone thinks the walls are wallpaper, but it’s actually a concrete render I’ve done myself.” MORE: HISTORIC QUEENSLAND WEATHER OBSERVATORY HITS THE MARKET The recently built lean-to.More from newsParks and wildlife the new lust-haves post coronavirus15 hours agoNoosa’s best beachfront penthouse is about to hit the market15 hours agoThere is also a recently built lean-to, which has downlights, fans and a built in barbecue, which is perfect for gatherings.“We’re known for our Christmas party,” Mr Sue-See said. The house at 104-114 Mona Drive, Jimboomba, has hit the market.THIS property has been more than just a home for Karl Sue-See.It has been the place where he has fostered a motocross community, with his 4.19ha property known at “The Misled Compound”.Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 1:25Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -1:25 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD432p432p288p288p180p180pAutoA, 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 Rate1xFullscreenThe Misled Compound hits the market01:25“We sponsor kids (for motocross), the ones that don’t get help,” Mr Sue-See said.“They come out to train.“It’s something I’ve always wanted to do — give kids the help I didn’t get.”Now it is up for sale. An inground trampoline and a half-pipe is every child’s dream. There benches in the kitchen were custom made.Mr Sue-See also custom-made the polished concrete benches in the kitchen, which adds to the house’s industrial vibe.The main level of the house has two bedrooms, a study, an open-plan kitchen and dining that leads to a deck, a rumpus and lounge. Upstairs is the master suite. There is a foam landing pit for practising jumps.Mr Sue-See’s property at 104-114 Mona Drive, Jimboomba, is only a 45 minute drive from Brisbane’s CBD and has everything for adrenaline seekers, from a motocross track with jumps and a foam landing pit, to a half-pipe, mini basketball court and an inground trampoline.last_img read more


Brisbane Broncos skipper signs new agent in bid to convert reno in to a sale

first_img Quade ready to let go — at any cost Ray White New Farm principal Matt Lancashire has gone to some extreme lengths to sell property, from riding a horse to jumping in pools in his suitThe house at 78 Harding Street was designed by Base Architecture and built for the Boyd family by award-winning development company, Graya Construction. More from newsNoosa unit prices hit new record high as region booms: REIQ12 hours agoParks and wildlife the new lust-haves post coronavirus12 hours ago The Boyds are selling their house in HendraBut with the selling season heating up, the 32-year-old fullback has signed inner-city prestige agent Matt Lancashire of Ray White New Farm to convert the listing in to a sale.And Mr Lancashire is confident of a win.“This home takes inner city family living to new heights,” he said. RELATED: Darius Boyd’s next big project revealed Rugby league star offloads luxury house Mr Lancashire said the property “will sell” via an expressions of interest campaign.The first open house is scheduled for 10am to 10.30am tomorrow. Located in Hendra, which is fast becoming one of the city’s most sought-after millionaire suburbs, the striking residence sits on a 650 sqm block. Also on this floor is the dedicated media room with projector, a powder room and a two-car garage.Other features include oak flooring, timber ceilings and original woodwork, plus contemporary touches of stone, marble and European tiles. Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 0:50Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:50 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD432p432p216p216p180p180pAutoA, 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 Rate1xFullscreenNRL stars tackling the property game00:50BRISBANE Broncos skipper Darius Boyd has made a captain’s call, trading real estate agents in a bid to sell his multimillion-dollar home.The architecturally-designed stunner, which is owned by Boyd and his social media influencer wife Kayla, was listed with another agency earlier this year, but failed to sell. MORE NEWS: Inside the most expensive house for sale in the US Spread over two vast levels, the house has four bedrooms including a huge master suite that is separated from the three other first floor bedrooms by a bridge and voids.It has a walk-in robe and a large ensuite.There is also a study and a family bathroom located on the first floor.It is on the ground floor that you will find the living areas, including the dining area, kitchen and living space, which opens on to an outdoor entertaining area with its own kitchen, sunken lounge, decks and pool. “We have already reached out to our extensive database, had some interested parties through the house, and received significant interest from people who want to inspect it,” Mr Lancashire said.“They include local Brisbane buyers and interstate and overseas buyers.“I did 19 transactions last quarter, and six were bought by people from overseas and interstate so there is still buyers looking for this type of high-end property in the Brisbane market.”Mr Lancashire said its location was also a drawcard for buyers looking to shift from other prestige suburbs like Ascot.“Hendra is quiet, close to the airport, has wide, tree-lined streets, is low density with low traffic, good schools and its family friendly,” he said.“In my opinion, Hendra is the suburb to watch.”last_img read more


A new chapter for Hawthorne bungalow

first_img24 Conventry Street, Hawthorne. Time taken: 12 months Reno spend: $600,000When Pauline Narloch first laid eyes on her Hawthorne home she knew it was a “renovators delight”.After buying the house at 24 Coventry St with her husband in 2008, Mrs Narloch spent 12 months transforming the old 1920s art deco house into a entertainer’s home.“We lived here for a year before we changed anything. It took us about two years to start,” Mrs Narloch said. BEFORE: 24 Coventry Street, Hawthorne when it was bought by the Narlochs.“I was diagnosed with breast cancer just as we moved in, so a lot of our ideas for our renovations ended up changing. AFTER: How it looks today.“The house is on top of a hill and exposed to north-east breezes so we ended up putting in a lot more glass than we had planned. We originally wanted to put in verandas.”She said when they bought the home, the kitchen and bathrooms were of original 1920s style with old cupboards. BEFORE: The pool area needed some TLC.“Nothing was built-in and the sink was in its original condition. The bathroom had terrazzo flooring and the tiles were dark and murky green,” Mrs Narloch said.“Let’s just say the renovations were a challenge.” AFTER: The pool after its makeover.While the original house was retained, Mrs Narloch said they lifted the property and moved it on the block to take advantage of the views. Adding big entertaining areas were a major part of the renovations.They also added a lower floor and an extra living area. AFTER: The house now has plenty of open living spaces.The five-bedroom, three-bathroom home is on a 810sq m block and includes a swimming pool and wet bar.More from newsParks and wildlife the new lust-haves post coronavirus9 hours agoNoosa’s best beachfront penthouse is about to hit the market9 hours agoWhile the renovations were under way, Mrs Narloch and her family moved into a townhouse next door, so they could keep an eye on the transformation and liaise with the builder. AFTER. Much of the old Queenslander remains, such as the veranda.Mrs Narloch said the loveliest elements of the Hawthorne Queenslander’s design were retained, including a bay window in the master bedroom.The master suite is on the upper level and contains a large bedroom, study nook, double-vanity ensuite, powder room and walk-in wardrobe. AFTER. The new home is an entertainer’s delight.“I just love every part of this house. It’s all beautiful. There are six decks so you can always find an outlook to enjoy,” Mrs Narloch said.Now that Mrs Narloch’s two sons have “flown the nest”, it is time to sell.“It’s a beautiful house but it’s too big to rattle around in,” she said.“I hope a family with teenage kids buys it.” The property is being sold by Emil Juresic of NGU Real Estate (0481 601 793).last_img read more


New suburb steps up to the million-dollar club

first_img RELATED: Top 20 Gold Coast streets revealed 23 Sunshine Boulevard, Broadbeach Waters sold for $2.2 million in April.Bundall held its position in the top 10 with a median sale price of $1.035m.Honorary membership goes to Main Beach where the median sale price was $1.675m, based on just 10 sales, while the southern hotspot of Bilinga recorded a median of $1.25 million based on 11 sales only.The latest marketing trends from realestate.com.au show Gold Coast real estate has held its own over the past three months, with house prices rising by 1.6 per cent and units by 2.4 per cent. Nerida Conisbee, realestate.com.au’s chief economist, said the premium property market has been one of the most stable property market during the COVID-19 pandemic.“The property market is currently being supported by high levels of stimulus, a stable banking system, mortgage payment freezes and relative confidence among buyers,” she said.“As a result, pricing has remained stable, despite being in a recession.” 41 Teemangum St, Currumbin goes to auction on August 22.The Kollosche agent set a suburb record in March with the $6.5m sale of 14 Darwalla Ave, Currumbin.There were 17 houses sold for $1 million-plus in the suburb since July 2019. Currumbin is one of 10 Gold Coast suburbs to break the $1 million threshold in fiscal 2020.Surfers Paradise, which includes the elite enclaves of Paradise Waters, Isle of Capri and Chevron Island, retains the million-dollar crown, recording a median price of $1.73125m across 80 sales. Is this mega mansion in the wrong suburb? Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 2:31Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -2:31 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels540p540p360p360p270p270pAutoA, 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 Rate1xFullscreenIs it a good time to list?02:31The Gold Coast’s million-dollar club has a new member with the laid-back southern suburb of Currumbin stepping up to the premium property podium.Latest data from realestate.com.au shows key sales in the past 12 months propelled house prices in Currumbin to a median of $1.054259 million.Over the past year, house prices in Currumbin rose by 25.4 per cent and a whopping 40.6 per cent in three years.Southern Gold Coast real estate specialist Troy Dowker said a limited supply of low density housing made Currumbin real estate a niche commodity. “With the rapid development of neighbouring suburbs, Currumbin’s low rise living environment and village ambience is appealing,” he said. “You’ve also got surf, trees, beach and the estuary, so there’s a lot of natural beauty in the area.” Broadbeach Waters new build with star appeal 113 Commodore Drive, Paradise Waters sold for $5.5 million in June.Mermaid Beach, renowned for its so-called Millionaire’s Row, recorded the Gold Coast’s second highest median house price of $1.6m.Tallebudgera Valley was the only hinterland suburb to make the cut, with a median house sale price of $1.2135m, ahead of Clear Island Waters ($1.238m) and Broadbeach Waters ($1.1825m).More from news02:37International architect Desmond Brooks selling luxury beach villa7 hours ago02:37Gold Coast property: Sovereign Islands mega mansion hits market with $16m price tag1 day agoUp the northern end of town, Runaway Bay and Paradise Point retained million-membership each with a median sale price of $1.05m.last_img read more


Life DemoWave clears permitting hurdles

first_imgLife DemoWave project has secured a permit to deploy wave energy converters for trials off the coast of Galicia, Spain.The agreement, allowing the Life DemoWave project to install two wave energy prototypes at the experimental site in Punta Langosteira, was signed on May 18, 2017, between the leader of the project, Quantum Innovative, and the Energy Institute of Galicia (INEGA) that manages the deployment site.The Life DemoWave team also said it is currently working on the construction of two 25kW prototypes, which will be deployed at the site to demonstrate the viability of using wave energy converters for power production.The project also aims to highlight the environmental benefits of the system, by quantifying the reduction of carbon footprint and other pollutants along the entire cycle, and identifying and minimizing its impact on biodiversity.Life DemoWave project, with the total budget of €1.8 million, was awarded €1 million through LIFE program – the EU’s funding instrument for the environment and climate action.The project will run for two years, until September 2018, involving a multidisciplinary consortium which, in addition to Quantum Innovative, also includes the University of Vigo, CETMAR, Advanced Crew and Ship Management (ACSM), Hércules Control (HCTech), and Grupo Josmar.last_img read more