In the UK, the company’s three DB schemes – which were acquired through takeovers – began offering pensioner members a pension increase exchange.The incentive exercise, which is strictly controlled by a mandatory industry-led code of conduct, see retiring members receive a higher starting pension, in exchange for no, or limited, increase in the payable pension.TUI schemes will now only offer statutory increases to members that opted for the increase, which reduced liabilities by £33m.In a statement, the company said: “The level of acceptances reduced the present value of future pension liabilities. The credit is taken to the income statement under IAS 19 (revised), as it represents a change in plan benefits.”TUI and its schemes had previously taken measures to plug the deficit among its three funds by holding its sponsor’s brand names as collateral value.In an innovative arrangement in 2011, the scheme was the first in the UK to hold intangible assets as collateral over its sponsor aimed at deficit reduction.At the time, the scheme had deficit of more than £400m, but used the Thomson and First Choice travel brands to generate an annual £33m payment into scheme via royalties. TUI Leisure has continued its push to de-risk its European pension schemes by conducting a pension increase exchange in the UK, and closing its defined benefit (DB) offering in Norway.The UK-based leisure company, with operations across Europe, had previously closed its DB scheme in the Netherlands.It was replaced by a defined contribution (DC) vehicle and reduced balance sheet liabilities by £14m (€17m).It has now confirmed the closure of its Norwegian DB offering, adding another £4m in saved liabilities, and a replacement DC offering.
Financial services regulation needs to anticipate problems rather than deal only with what has happened in the past, and see consumers as they really are, the head of the European Insurance and Occupational Pensions Authority (EIOPA) has said.EIOPA chairman Gabriel Bernardino told a recent conference in Nice: “What we need is not more, or less, regulation, but smarter regulation.”By smart regulation, he said he meant rules that take real consumer behaviour into account, and recognise the limitations and biases in the way people make decisions.“We have to put the consumer as they really are at the heart of regulation, rather than the consumer regulators wish for,” he said, according to a text of the speech. Smart regulation also means regulation that is proportionate, he said, in that it reflects the evidence of what works and what does not.It should also be forward-looking, aiming to anticipate problems rather than address only the problems of the past, Bernardino argued.“Our aim is to have smart regulation, not killing industry with unnecessary rules,” he said, calling on the insurance industry to continue engaging with regulators in a constructive dialogue. Bernardino cautioned against constant shifts in regulation, saying: “Ceaseless change should not become the new normal.”However, he also said he did not believe there had been a loss of regulatory balance.“Among regulators, there is the general consciousness of the possibility of unintended consequences of regulation,” he said. He said they recognised the need to stop and let new regulatory approaches settle, in order to see what then needed adjusting.
“The high-net-worth opportunity is very significant – it is a fast-growing segment, and it has a risk appetite that is higher than the institutional side of the market,” he conceded.“But we manage more than €200bn for these clients, and we are totally committed to them.”As evidence of this commitment, Faissola pointed to the new hire of J J Wilczewski from Aon Hewitt as co-head of the Global Client Group for the Americas to focus on institutional investors, and the appointment of co-CIO Randy Brown to the new role of head of the insurance and pensions solutions business in the UK. Brown has previously worked as global head of Deutsche Insurance Asset Management, the world’s largest manager of non-affiliated assets for the insurance industry.“Randy has been an excellent co-CIO, and I am delighted he will now turn his talents to leading the growth of our UK and IPS businesses,” said Faissola.Asoka Wöhrmann will now take on the role of sole CIO.Wilczewski will report to Dario Schiraldi, head of the Global Client Group, who said: “Deutsche Asset & Wealth Management is fully committed to serving the needs of institutional investors and their consultants.“As one of the few firms that provide a full suite of solutions across multiple asset categories and investment disciplines, we have a compelling offering for institutions in the Americas.” Michele Faissola, head of Deutsche Asset & Wealth Management (DeAWM), has pointed to two new appointments as evidence of the firm’s “total commitment” to institutional clients, at its annual press conference in London on Tuesday.Faissola’s opening speech detailed DeAWM’s “one-bank” strategic restructuring over the past two years and focused on the global opportunity from high and ultra-high-net-worth individual clients.The business, which manages around €1trn in assets worldwide, plans a 15% increase in ultra-high-net-worth relationship managers through new hires.However, he emphasised that “liability-focused” institutions remained crucial to the firm’s business.
Interested parties should have a minimum of CHF1.5bn invested in private infrastructure debt and a total AUM of CHF20bn.Organisations must be highly transparent and have a proven track record and commitment to infrastructure debt.They should also have a strong standing in markets and a comprehensive investment and risk-management process.The closing date for submissions is 4 December, with performance data supplied, gross of fees, until the end of September.In June, Stefan Beiner, deputy director of the fund, said he had plans to sell off equities over concerns that peak returns had been seen.He said as an alternative Publica would look to invest in private infrastructure debt and direct lending, although not entirely in Switzerland.However, at the time, he said the fund had not fully assessed risk/return trade-offs and that the asset classes were still under assessment.The fund also announced it was switching to passive and smart-beta mandates for almost all of its asset class investments.It said it would exclude insurance-linked bonds and infrastructure private debt from this switch, as these remained an area for active managers, due to the lack of indices. For any questions regarding this search, please email [email protected] Questions will not be accepted after 1 December. For full information, please go to http://www.ipe-quest.com/search.htm. Publica, the CHF36bn (€30bn) Swiss federal pension fund, has tendered a CHF300m infrastructure private debt mandate using IPE-Quest.According to search QN1470, the pension fund is looking for senior secured infrastructure debt excluding mezzanine and equity.Debt should related to private projects in OECD countries, the fund said, and ideally provided within a segregated mandate.Asset managers should focus on brownfield projects only using a long-only, active management style.
The deficit among UK pension funds has increased by one-third after a significant fall in yields over the month of November, research from the Pension Protection Fund (PPF) has shown.The lifeboat fund’s monthly 7800 Index update, which calculates the ability of UK pension funds to provide PPF-level benefits, found a shortfall among the 6,057 schemes of £221.bn (€280.5bn) at the end of November.This was a 34% increase from the £164.9bn figure a month earlier.The fund said the chief reason for the sudden increase was a 31 basis point drop in the yield of 15-year UK Gilts. It also pointed out that the increase in liabilities came despite a 2.9% rise in the value of assets after positive stock market movements.Over the month, assets rose to £1.23bn from £1.2bn, but the increase was offset by a 6.6% rise in liabilities going from £1.36bn to £1.46bn.The PPF said funding ratios, over the year to the end of November, deteriorated by more than 13 percentage points, falling from 97.5% in 2013 to 84.8%.In other news, Partnership, the medically underwritten annuity provider, has announced a record-breaking £206m buy-in with an undisclosed UK pension fund.The multi-billion pound pension fund requested to remain anonymous until all affected members had been informed.The latest transaction, in a growing market of medically underwritten transactions, was won by Partnership after an open tender among four providers.Partnership insured the pension scheme’s highest valued members in a process known as ‘top-slicing’, which sees the members with the greatest individual liabilities insured.The first medically underwritten bulk annuity was insured by Partnership only in March 2013, but the combined market now accounts for more than £600m of liabilities.Hymans Robertson, a consultancy, said it expected the market to reach £1bn by the first half of 2015, given the pipeline of deals.Partner James Mullins said the most popular transaction type remained the ‘top-slice’.“This allows the pension scheme to remove a significant concentration of risk at a highly competitive price,” he said.The record-breaking medically underwritten deal in 2014 adds to fellow record deals for buyouts and traditional buy-ins also seen this year.Last month, the TRW scheme broke the buyout record in a £2.5bn deal with L&G, which followed on from the insurer’s £3bn record buy-in with the ICI Pension Fund.Fore more on bulk annuities from IPE, click here
Coats , Unigestion , Insight Investment , M&G Investments , RBC Global Asset Management , Tikehau Capital Coats – John Lovell has been appointed group pensions director at the UK textiles business as it and parent company Guinness Peat face regulatory scrutiny for allegedly underfunding its pension schemes. Lovell joins from Sainsbury’s , the supermarket, where he was head of pensions. Guinness Peat has been served an official warning notice by the UK Pensions Regulator (TPR) for providing insufficient resources to the Coats Pension Plan and said it may issue a financial support direction against the company. Lovell takes over management of the scheme and will be responsible for pensions strategy at Coats and Guinness Peat, and delivering this with trustees. Lovell’s previous experience includes director of pensions at Lafarge UK and pensions manager at National Grid . Unigestion – Rudyard Ekindi has joined the Swiss asset manager as head of investment solutions in its equity team. Ekindi was previously director of investment research at the National Employment Savings Trust (NEST), the UK defined contribution (DC) master trust. He has also been head of asset allocation at Credit Suisse Asset Management . Ekindi will report to Alexei Jourovski and work on developing Unigestion’s products.Insight Investment – David Hiller has been appointed a portfolio manager in its multi-asset team. Hiller joins from Aviva Investors , where he was an economist within its multi-asset department, and has prior experience working for Barclays Capital as chief UK economist. He will report to Matthew Merrit . M&G Investments – John Mayhew has joined the asset manager as head of infrastructure finance within its institutional fixed income team. He joins from Erias Finance , an infrastructure advisory firm founded by Mayhew in 2009. He will report to Simon Pilcher and lead a six-person team focusing on sourcing original project finance and infrastructure debt deals.RBC Global Asset Management – Nicole Vettise has been appointed as an institutional portfolio manager in the London team and serve as a capability specialist for the emerging markets equities team. Vettise joins from JP Morgan Asset Management , where she was lead client portfolio manager for its natural resources strategies and global thematic equity funds. She previously held roles at Credit Suisse Private Banking , Fleming Asset Management and Jardine Fleming .Tikehau Capital – Jean-Pierre Mustier has joined the alternatives asset manager as a partner, based in London. Mustier will focus on international expansion and supporting previous business. Mustier comes from a corporate and investment banking background, mainly at French bank Société Générale . He also worked at UniCredit as a deputy manager for corporate and investment banking.
Varma and Ilmarinen, the two largest pension insurance companies in Finland, are almost neck-and-neck in terms of assets under management following the latter firm’s acquisition of Etera, third-quarter results have shown.Ilmarinen is to merge with the smaller pensions insurer Etera at the beginning of next year, in a move which is closing the gap between the two earnings-related pension giants.At the end of September, Varma reported its investment portfolio had reached a market value of €45.4bn, while Ilmarinen revealed its assets had grown to €38.9bn.Interim figures released by Etera, meanwhile, showed its investments were worth €6.3bn at the end of the third quarter reporting period. This means the combined assets of Ilmarinen and Etera were €45.2bn – just €200m less than Varma’s total pot.In the third-quarter results, Varma reported an investment return of 6.2% between January and September – gaining €2.7bn – up from 3.1% in the same period in 2016.Meanwhile, Ilmarinen generated a return of 5.5% on its investments. Etera reported a 4.4% return on its investment portfolio, up from 3.6% in the same period last year.Varma said in its interim report that it had done well in the latest round of account transfers between earnings-related pension companies, concluded at the end of September.According to the statistics of the Finnish Pension Alliance TELA, the contributions to be transferred to Varma totalled €48m.The figures published by TELA showed that Ilmarinen and Etera both suffered net transfers out in the period, of €17.5m and €15.5m respectively.Risto Murto, Varma’s president and chief executive, said: “Varma’s financial situation has further improved this year. Our solvency and investment assets are at a record high level.”He said the successful transfer round had supported an increase in premium income, amounting to €200m in the past five years.However, Ilmarinen said its customer acquisition had been “excellent” in the third quarter of this year.“Measured in premiums written, net customer acquisition was €96m since the beginning of the year,” the company said.
Tuur Elzinga, FNVEarlier, Gijs van Dijk, MP for the labour party PvdA and a former FNV trustee, said a gesture from the government on the retirement age was needed for a breakthrough in pensions reform.Both Elzinga and Van Dijk underlined the importance of allowing people in physically demanding jobs to retire earlier.When asked by IPE’s Dutch sister publication Pensioen Pro, Elzinga said that an agreement between unions and employers on the merits had not been reached yet. The FNV said that freezing the retirement age was one of its three key demands for an agreement with government and employers.Inflation compensation for all generations and pensions accrual for all workers, including flexible workers and the self-employed, were also crucial elements to be agreed upon.The FNV has been making similar demands for nearly a year as discussions over pensions reform have stalled.Next Saturday, the FNV will underline its demands at a demonstration in Amsterdam. FNV, one of the Netherlands’ largest trade unions, has demanded that the government freeze the state pension age at 66 in exchange for its support for a proposed new national pension contract.In an interview in daily newspaper Trouw last Friday, Tuur Elzinga, the FNV’s lead negotiator on the pensions system, emphasised that the government had to take such a step in order to secure the support of the union’s membership.His comments came after Wouter Koolmees, minister for social affairs, said he would stick with the government’s decision to gradually raise the state pension age to 67 by 2021. The minister said the increase was necessary to keep pace with rising longevity.Elzinga said the union needed a signal from the government that it was willing to compromise. “If I were to conclude an accord with the employers with no changes to raising the retirement age, I’ll hit a wall with my supporters,” the paper quoted him as saying.
The kitchen in the house at 15 Arinya Rd, Ashgrove, after the renovation.jAt the time it was a two-bedroom, one-bathroom character cottage that had been built in 1938.“It was a beaut home that had been so loved by the original family that owned it,” she said.“That’s why there was this real honour and respect when I renovated.” 71 BRISBANE HOMES UP FOR AUCTION One of the bedrooms in the house at 15 Arinya Rd, Ashgrove, before the renovation. The back deck on the house at 15 Arinya Rd, Ashgrove, before the renovation. The living and dining area in the house at 15 Arinya Rd, Ashgrove, before the renovation. One of the bedrooms in the house at 15 Arinya Rd, Ashgrove, after the renovation.The house overlooks parkland and neighbouring Dorrington Park, which can be accessed through a back gate.Reflecting on the nine month renovation, Ms Maguire said her father was integral to helping her navigate the process.“I’ve renovated a couple of properties before, but this is the first one I did as an owner/builder,” she said.“Dad was really helpful in making sure things were on track and helping me select great trades people.“The process was really a joy.”Ms Maguire said she would miss the home, but believed it was time to start a new chapter.“I’m looking forward to handing the keys over to another beautiful family who can come in and enjoy it like we have,” she said.“It’s been my dream home, quite honestly.”The property is being marketed by Tyson Clarke of Queensland Sotheby’s – Brisbane and is scheduled for auction onsite on Saturday, September 8 at 1pm.RENO FACT CHECKTime taken: 8-9 monthsTotal spend: $1 million plusEnd valuation: A price guide can’t be given when a home is going to auction in Queensland More from newsParks and wildlife the new lust-haves post coronavirus17 hours agoNoosa’s best beachfront penthouse is about to hit the market17 hours agoThe front of the house at 15 Arinya Rd, Ashgrove, before the renovation. The front of the house at 15 Arinya Rd, Ashgrove, after the renovation.The thoughtful renovation blends traditional features with modern design. Louvred windows have been installed to make the most of the Queensland breezes, while the French doors and timber trimmings are in keeping with the character of the home.“I wanted to make sure everything we put in the property would stand the test of time,” Ms Maguire said. SPY-LIKE FEATURES OF FORMER CONSULATE The bathroom in the house at 15 Arinya Rd, Ashgrove, before the renovation. The kitchen in the house at 15 Arinya Rd, Ashgrove, before the renovation. The backyard of the property at 15 Arinya Rd, Ashgrove, before the renovation. One of the bathrooms in the house at 15 Arinya Rd, Ashgrove, after the renovation.The house now spans two levels, with multiple living areas surrounding four bedrooms on the upper level, including a main bedroom with a bay window, two walk-in wardrobes and a bathroom. The lower level is mostly dedicated to storage, in and around the secure double garage, mud room, laundry, media room and ensuites guest bedroom. A sitting room in the house at 15 Arinya Rd, Ashgrove, after the renovation.During its conversion into a five-bedroom, three-bathroom home, Ms Maguire wanted to preserve the character and general footprint of the house, while at the same time increasing its scale and liveability.Her favourite feature of the new design is its interaction with the pool and the pool house. “The minute you arrive at the property, there’s an entry platform and then you go up the stairs into the heart of the home,” she said. THE BACHELOR’S QUEENSLAND CRASH PAD “Then as soon as you’re there, you see the pool and the pool pavilion.”But the room that has undergone the most dramatic transformation would have to be the kitchen.“I probably feel that space has been brought into our era, but is still not too slick and modern,” Ms Maguire said.“It has a contemporary, classic feel to it.” Jane Maguire inside the home she has renovated in Ashgrove. Image: AAP/Josh Woning.FROM the red, velvet wallpaper in the living room, to the garish linoleum in the kitchen, there was no denying the house was a 1930s time capsule.But that’s exactly what Jane Maguire liked about it.“The original owners lived there well into their 80s and they’d barely touched it,” Ms Maguire said.“That was appealing to me — that it was in its original state.”Ms Maguire said she could “feel the love” when she bought the property eight years ago. GET THE LATEST REAL ESTATE NEWS DIRECT TO YOUR INBOX HERE The backyard area of the house at 15 Arinya Rd, Ashgrove, after the renovation.Polished timber floors, ornate plaster ceilings, bay windows, stained glass, a Hampton-inspired staircase and a fireplace all serve to keep the 1930s heritage alive.Marble benchtops, Di Lorenzo marble tiles, pendant lighting, Ilve and Miele appliances, a drinks bar, wine cellar and yoga room are some of the contemporary additions to the home.
Edge Monaco Street. MORE NEWS: Fancy an NRL halfback for a landlord? Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 4:18Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -4:18 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels576p576p400p400p320p320p228p228pAutoA, 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 Rate1xFullscreenNovember 6: Prestige listings04:19 Edge Monaco Street. Edge Monaco Street.Mr Pancur described them as “large, luxury apartments” with sleek finishes. A rooftop swimming pool and barbecue area as well as a gym are also part of the development.Mr Pancur said it was expected to be finished next year. “Construction starts mid March and the completion date is April 2020,” he said.A display suite at 17/19 Victoria Ave, Niecon Plaza, Broadbeach is open from 10am to 4pm daily. He said they had sold two apartments and were getting more enquiries every day. “We’re probably getting close to five to 10 enquiries a day,” he said.Apartments start at $628,000 while the two penthouses are priced from $2.035 million. Edge Monaco Street will have 37 apartments.A WATERFRONT site in a prestigious enclave of Surfers Paradise has been cleared to make way for a $34 million residential development.Construction on Edge Monaco Street is due to kick off in March.The 11-storey development, by Tission Group, will be built at 42 Monaco St and include 37 two, three and four-bedroom apartments. Edge Monaco Street.Queensland Sotheby’s International projects and developments managing director Patrick Pancur said its location on the waterfront with parklands adjacent the site made it appealing to prospective buyers. “It sits next to 20 acres of parkland (so) you’re never going to be built out,” he said.More from news02:37International architect Desmond Brooks selling luxury beach villa13 hours ago02:37Gold Coast property: Sovereign Islands mega mansion hits market with $16m price tag2 days agoMORE NEWS: Lisa Wilkinson’s failed experiment