epn: European Pensions & Investment News articles from August 2005

epn: European Pensions & Investment News archives from August 2005

News: Dutch funds make key asset adjustments ahead of FTK.
August 1, 2005... Dutch pension funds are starting to make key changes to their asset portfolios in the run-up to the introduction of the new FTK regulations, slated for 1 January 2006. The FTK will introduce mark to market reporting and 105 per cent...

News: Morgan Stanley makes Meier raid on Barclays Global Investors.
August 1, 2005... Morgan Stanley has poached Benno Meier from Barclays Global Investors' to beef up its capabilities in the commodities arena. Mr Meier, who was the former head of European indexed commodity strategy at BGI, joins as a part the firm's investor...

News: epn survey: move into property slowing.
August 1, 2005... The results of epn's latest investment outlook show that five per cent of respondents plan to increase their exposure to property over the next six months, while 17.5 per cent of investors aim to beef up their allocation to equities. A...

News: BGI launches euro LDI product tranche.
August 1, 2005... Barclays Global Investors has launched a euro tranche for its liability driven investment product range, BGI Liability Funds. This follows the launch of a sterling-denominated suite in March. The new product set comprises three groups of...

News: Foundations mismatch priorties.
August 1, 2005... Watson Wyatt has spotted discrepancies between the spending targets and investment strategies of German foundations. Over 65 per cent of board members believe that optimal exposure to equities should be below 25 per cent. The majority of...

News: Multi-managers launch property funds.
August 1, 2005... Russell, the multi-manager, has announced the launch of a multi-manager fund for property and currency for institutional investors in Europe, the Middle East and Asia. Russell's rival multi-manager, SEI, is also launching a real estate...

News: Watson Wyatt offers Nordic solvency tool.
August 1, 2005... Watson Wyatt is developing what it has dubbed "easier" ALM tools for the Scandinavian market. The investment manager anticipates increased demand for cheaper liability assessment products in the run-up to the introduction of traffic light...

News: DeAM headhunts German business chief.
August 1, 2005... Deutsche Asset Management in Frankfurt is looking internally and externally for a "high-calibre" replacement for its head of German institutional business, Oliver Behrens. Mr Behrens is to become a director of Dekabank - a move not...

News: News in brief.
August 1, 2005... UK THINK TANK RECOMMENDS RAISING PENSION AGE The UK's Institute for Public Policy Research (IPPR) has proposed that the state retirement age should be increased to 67 between 2020 and 2030 if the UK pensions system is to be sustainable. The...

News: Flight from arbitrage stemmed as performance starts to improve, claim parallel studies by Tara Capital and Edhec.
August 1, 2005... Separate studies by Tara Capital and by Edhec's risk team have revealed that several hedge fund strategies, including arbitrage strategies, are coming back into vogue. The results of Tara's latest survey are in stark contrast to the previous...

News: Greek trade unions mount lobbying and strike campaign ahead of implementation of EU pensions directive.
August 1, 2005... Trade unions' resistance to first pillar pension reforms have impeded the Greek government's preparations for the implementation of the pan-European occupational pension fund directive. The deadline for incorporation of the tenets of the...

News: German master KAGs anticipate E100bn new business, claims survey.
August 1, 2005... Providers of German master KAG institutional fund platforms expect a further E100bn in as yet unrestructured new business, according to a survey undertaken by Telos, a sister company of the German consultancy RCP & Partners. Some E190bn...

News: People on the move.
August 1, 2005... KRUME TO RUN MERCK FINCK INVESTMENTS Michael Krume has joined the Munich-based private bank Merck Finck & Co to run the institutional asset management business and private banking as a partner with personal liability. He replaces Utz-Dieter...

News: Emerging market performance prompts interest from pension funds.
August 1, 2005... Positive returns in emerging market bonds are prompting interest among pension funds. The JPMorgan EMBI-Global emerging market bond index tightened by 12bps, which translated into a total return of five per cent during the first half of...

News: China renminbi revaluation meets mixed interpretation from investment managers.
August 1, 2005... Opinion among asset managers remains divided over the future prospects of the Chinese economy in the wake of July's appreciation of the renminbi. The marginal increase of two per cent in the currency's value has been seen more as a...

News: Danish fund for lawyers and economists to up emerging market bond exposure.
August 1, 2005... Juristernes og Okonomernes (JOP), the Dkr 27bn (E3.62bn), the Danish pension fund for lawyers and economists, has announced that it will increase its allocation to emerging market bonds. The fund's current emerging market bond holdings form...

News Analysis: Commission prolongs Ucits debate.
August 1, 2005... The European Commission has opted for enhancement and better interpretation of the existing framework for investment funds, over a complete replacement of Ucits law. However, the industry will have to wait until early next year for any...

News Analysis: UK's IMA recommends tax clarity over pooling.
August 1, 2005... The European Commission should speed up its efforts to facilitate the pooling of fund assets, according to a report published by the UK Investment Management Association. Pension and investment regulators familiar with pooling should also help...

Comment: Leader - Die Gretchenfrage or do you believe in swaps?
August 1, 2005... GRETCHEN: . . . Do you believe in God? FAUST: My darling, who can say: / I believe in God! / May you of priests or sages enquire, / And their answer seems but a mockery / To be of he who asks. Some European pension institutions might...

Comment: World view - The start of another long march.
August 1, 2005... One recent development in particular has rocked the financial markets. It was not the renewed terrorist attack in London, whose repurcussions will be felt in time. It was rather the Chinese government's ground-breaking decision no- longer to...

Comment: Industry voice - High income in a low-income world.
August 1, 2005... High-yield fixed-income asset classes, such as emerging-market debt and corporate high yield, have been a hot topic in recent years. Once the sole domain of the risk taker, these asset classes have become more commonplace as companies struggle...

Comment: Mephisto - There's more to being an 'international finance centre' than meets the eye.
August 1, 2005... On a fact-finding mission to the Isle of Man last week, Mephisto learned much about the 42 km long and 14 km wide island. For example, the Isle of Man houses 47 international cross-border pension schemes and almost 80,000 inhabitants. The...

epn Investment Outlook Survey: Investor confidence fades for first time in two years.
August 1, 2005... For the first time since September 2003, respondents to epn's latest quarterly institutional investor survey have expressed an air of caution about future global economic growth. Although not one investor predicted negative growth in any of...

epn Investment Outlook Survey: Increased demand sees oil price rise shatter expectations.
August 1, 2005... When we asked investors in April to predict the price at which US crude oil would settle over the following six months, over half said that prices would close somewhere around the $40 to $49 a barrel mark, while as many as 10 per cent said that...

Special Focus: Enhanced Indexation - Enhanced market in bloom.
August 1, 2005... Speak to any enhanced index manager and they will tell you that more and more of their new business wins are coming from investors who have had bad experiences with active management. But they will also tell you that considerable sums of money...

Special Focus: Enhanced Indexation - Enhanced indexation: what does it cost?
August 1, 2005... While debate continues about the value of enhanced indexation as much of the pension fund community focuses on absolute returns, the question of how enhanced index managers should charge for their services remains. "I think there are good...

Nordic Property: Finnish funds target commercial property sector.
August 1, 2005... While some Finnish investors eye the overseas property market, CapMan Real Estate and nine other institutional investors have signed an agreement to create a E500m private-equity real estate fund that will invest in commercial premises in...

Nordic Property: The Danish Real Estate Club pools property resources.
August 1, 2005... 'Safety in numbers' is an expression often used when venturing into the unknown and one that readily describes FSP, PenSam, PFA, PKA and SamPension's approach to investing in the international property markets. Each keen to increase their...

Pensions Snapshot: Slovakia.
August 1, 2005... This year sees the completion of an ambitious programme of pension reform in the Republic of Slovakia. True to the World Bank model, Slovaks now enjoy a three-pillar pension system broadly similar to that of her neighbours. "Reform to a...

News: Finnish experts recommend 40% limit on equity investment.
August 29, 2005... The latest inquiry into Finnish investment regulations for pension funds is likely to lead to the expansion of equity portfolios and consequently to more volatile returns in the future, Kari Puro, chairman of the inquiry and CEO of E17.6bn...

News: Hewitt snatches Siemens actuarial Dax 30 mandate.
August 29, 2005... Siemens in Germany has appointed the consultancy BodeHewitt as its actuary and consultant to take on legal issues for its corporate pension systems. BodeHewitt replaces Mercer, Siemens told our sister publication dpn. Carsten Holscher, a...

News: Swedish traffic-light system stays on amber.
August 29, 2005... Sweden's Financial Authority (FI) has postponed the launch of its latest version of traffic-light solvency system until 6 October 2005. The new version was initially scheduled to be published on 19 September. The traffic-light system is...

News: Reports reveal growing pension deficits.
August 29, 2005... Corporate pension fund deficits are increasing in continental Europe, despite growth in corporate contributions to pension funds and the recent positive stock market trends, according to two recent studies. A report published by the German...

News: US fixed income fuels Norway petrol returns.
August 29, 2005... The Government Petroleum Fund in Norway notched up returns of 3.8 per cent in the second quarter of this year after giving US fixed income briefs to Barclays Global Investors and PanAgora Asset Management, and three equity mandates to APS Asset...

News: Pimco unveils euro pooled vehicle.
August 29, 2005... Pimco is launching a euro-denominated, pooled liability driven investment fund with an alpha generating component. The fund, which is understood to have already attracted the interest of two Dutch institutions with E75m in total, will be...

News: CSAM hesitates over the integration of two SFr20bn hedge fund of funds.
August 29, 2005... Credit Suisse Asset Management's deputy chairman, Bob Parker, says the group still has "work to do" in deciding the future of the two hedge fund of fund operations it has inherited following the decoupling of the group's asset management...

News: News in brief.
August 29, 2005... SWEDISH FUNDS NOTCH UP IMPRESSIVE RETURNS AP2, the second Swedish National Pension Fund, has posted returns of 8.4 per cent for the first half of 2005, while AP3 has pulled in returns of 8.6 per cent after commission expenses. As of June...

News: Danske targets European business with new hire.
August 29, 2005... Danske Capital has poached Nordea Investment Management's former head of Danish institutional clients, Stig Brammer, to become its head of institutional sales. Forty-three year old Mr Brammer's principal role will be to meet one-on-one with...

News: FRR continues international public image drive with hire of London PR company.
August 29, 2005... Fonds de Reserve pour les Retraites (FRR), the E19.65bn French pensions reserve fund, is in the process hiring a London public relations firm with the aim of "better understanding the international financial press sector and deepening its...

News: People on the move.
August 29, 2005... Threadneedle takes on Berglund Threadneedle Investments has appointed Thomas Berglund as head of Nordic distribution. Mr Berglund joins Threadneedle from If Property & Casualty Insurance where he was responsible for the selection of...

News: Finnish pension firms see good growth.
August 29, 2005... Leading Finnish pension funds have reported substantial growth for the first half of 2005. It was good news across portfolios, with equities performing especially well. The assets of Finland's largest pension fund, Varma, increased from...

News: Swiss half year returns swell to 6.2% as equities and currency lead to strong posting.
August 29, 2005... Swiss pension funds turned in a respectable 6.2 per cent during the first half of the year, while funds' equity investments pulled in returns of almost 12 per cent, according to data from Watson Wyatt and Asip, the Swiss pension fund...

News: Upbeat managers shrug off 'capacity effect' threat.
August 29, 2005... Alternative investment professionals are optimistic about future prospects for the industry and do not see the so-called "capacity effect" as a major threat to future profitability, according to a survey by Edhec Risk and Asset Management...

News: E.ON commits to e5.4bn in pension obligations.
August 29, 2005... The power and gas company E.ON is to finance E5.4bn in pension obligations relating to its German workforce. It will use a so-called contractual trust arrangement to fund the obligations and the transfer will take place in 2006, chief financial...

News Analysis: Funding hole gets bigger.
August 29, 2005... Pension fund deficits in continental Europe are on the climb while shortfalls in the UK are falling, according to the results of consultant Lane Clark & Peacock's (LCP) twelfth annual Accounting for Pensions Survey. Based on the findings...

Interview: Taking an organic approach.
August 29, 2005... Times have changed considerably since the early nineteenth century when the assets of Pictet's private clients were invested in such alternative asset classes as lottery tickets and Irish tontine annuities. Entry into the institutional...

Comment: Leader - The real point of accounting for pensions.
August 29, 2005... Discount rates applied for the measurement of pension fund liabilities are crucial for the wider communication of the health of a company's retirement finances. Too high and the cover ratio of the fund can appear unrealistically healthy....

Comment: World View - The sun goes in during summer.
August 29, 2005... It was a very profitable second quarter of the year, with most assets making gains. The mood in the financial markets was very positive and the emerging and European markets enjoyed one of their best performances for some time. Only the US fell...

Comment: Industry Voice - Ensuring ratings reflect performance.
August 29, 2005... With the development of independent distribution and so-called 'open' architecture, the marketing success of mutual funds no longer only depends on the selling capabilities of sales networks, but also on financial performance. This...

Comment: Mephisto - Swapping loafers for dicky bows as TV star embarks on hedge fund.
August 29, 2005... If Mephisto ever had an image of a hedge fund manager, it was of a gentleman in Gucci loafers and a button-down shirt. Far from London's Berkeley Square, or from Connecticut's Greenwich, one academic is planning his hedge fund debut. The...

Special Focus: US Investments - A fresh perspective on the US.
August 29, 2005... Alan Greenspan's first days as chairman of the US Federal Reserve were nothing if not dramatic. Just months into his stint in the economic spotlight, the Dow Jones lost more than 20 per cent of its value as Wall Street approached meltdown on...

Special Focus: US Investments - The natural hunting ground.
August 29, 2005... After five years of relative outperformance, investment opportunities in the US small-cap market may be stymied by increased efficiency. Both domestic and non-US investors have treated the small- and mid-cap market - those companies capitalised...

Microcredit: Asset class or philanthropy?
August 29, 2005... It is well known that ABP is a multi-faceted pension fund when it comes to investments, but now even the poorest African can make use of the pension assets of Dutch civil servants. The fund has made this possible by means of a E5m investment in...

Fund Profile: Bayer Group Pension Plan UK - Science fund pioneers new investment strategy.
August 29, 2005... Friedrich Bayer first began to trade in the UK in 1871 when he started to sell dyestuffs to the burgeoning mill industry. Since that humble start, the Bayer Group has grown into a worldwide company with almost 125,000 staff working to prove the...

Pensions Snapshot: United Kingdom.
August 29, 2005... The UK is caught in yet another round of regulatory reviews and legislative reforms. Pension fund trustees faced the scrutiny of former Gartmore chief executive, Paul Myners, in his 2001 report, while actuaries were examined by ex-Competitions...