epn: European Pensions & Investment News articles from March 2003

epn: European Pensions & Investment News archives from March 2003

News: S&P "losing touch with default risk".(Standard & Poor's considered "inconsistent" in its downgrade of Thyssen Krupp)
March 3, 2003... Credit ratings agency, Standard & Poor's (S&P), has been slated for its decision to downgrade German industrial, Thyssen Krupp to BB+. Institutional investors have been forced to sell bondholdings because they have slipped to speculative status...

News: Double the expertise for Metallrente scheme.(Brief Article)
March 3, 2003... MetallRente, Germany's new industrywide pensions scheme for the metal and electronics industry, has appointed Dr. Dr. Heissmann and Feri Institut ional Management to its investment committee, according to Heribert Karch and Bjorn Schutt-Alpen,...

News: Multinationals can base solvency on home country plan.(Industry Overview)
March 3, 2003... Multinationals will be able to promise solvency provisions based on their home country plan, and not on every single scheme they operate within the European Union. Politicians in Brussels have backed the proposal which gives greater flexibility...

Scheme News: Two giants fail test.(report on Dutch pension funds)(Industry Overview)
March 3, 2003... While much of the Dutch pension sector looks healthy, some of the country's largest funds are struggling to meet funding requirements, according to a report from the Dutch Association of industry-wide Pension Funds (VB). The country's two...

Scheme News: Portuguese pension funds lost 3.3% in 2002.(Brief Article)
March 3, 2003... Pension funds in Portugal suffered a median fall of -3.3% last year, a relatively successful escape from bearish equity markets.The Belgian pension fund average was more than 12% down and the UK average pooled fund fell by more than 18%. ...

Asset Management News: DSTi buys Askari.(DST International buys unit of State Street)
March 3, 2003... State Street has sold its risk management software unit Askari to UK firm DST International (DSTi). No price has been put on the value of the deal because, according to a DSTi spokesperson, the sale of Askari emerged from an "internal...

Asset Management News: Ashmore takes Luxembourg route to emerging markets.(Ashmore Investment Management)(Brief Article)
March 3, 2003... Ashmore Investment Management has launched a Luxembourg-registered Sicav investing in emerging market debt. The portfolio will invest principally in G-7 currency and principally US$ denominated-debt instruments from sovereign issuers. ...

People on the move: UBS's regional head.(Neil Williams joins UBS Global Asset Management)(Brief Article)
March 3, 2003... Neil Williams, has joined UBS Global Asset Management as regional head of asset allocation. He will be responsible for analysing economic and capital markets across asset classes globally and in the UK and Europe in particular. He...

People on the move: Winzeler to Unigestion.(Rolf Winzeler leaves Atlantic-Pacific Capital)(Brief Article)
March 3, 2003... Rolf Winzeler has left Atlantic-Pacific Capital for another alternative investment management boutique, Unigestion. He will be marketing director in the private equity department across Europe. Geneva-based Unigestion has more than...

People on the move: Pooled market focus.(Mark Miller appointed at Legal & General Investment Management)(Brief Article)
March 3, 2003... Legal & General Investment Management has appointed Mark Miller as head of business development, corporate pensions. He will be at the forefront of a drive into Europe that will focus on the Irish and Dutch pooled market. Legal & General...

People on the move: Italian interests.(Morley Fund Management opens Milan, Italy, office)(Brief Article)
March 3, 2003... Morley Fund Management has opened an office in Milan, aimed at both the institutional and third-party distribution market. Morley will look to promote funds from its privilege portfolio range, a Luxembourg-based Sicav, which includes socially...

Asset Management News: T Rowe predicts 20% rebound.(T Rowe Price)
March 3, 2003... Brushing off stock market jitters over uncertainty of a war with Iraq, a prominent US chief investment officer has made one of the year's boldest pitches yet for a further push into equities. David Testa, chief investment officer with...

Asset Management News: Towers first choice for TotalFinaElf.(TotalFinaElf names Towers Perrin as administrator)(Brief Article)
March 3, 2003... Oil and petrochemical giant, TotalFinaElf, has appointed Towers Perrin as administrator to its UK pension plan. The new plan, formed from the legacy schemes of TotalFinaElf's 13 UK subsidiaries, will have a total membership of 15,000 and assets...

Asset Management News: Aberdeen gets E340m to distribute in eurozone.(Aberdeen Property Investors boosting fund)(Brief Article)
March 3, 2003... Aberdeen Property Investors is on the way to raising its specialist eurozone logistics and distribution property fund to E340m from GBP200m. Two large institutional investors, one from Norway and one from Denmark, have committed E70m...

Comment & Analysis: Converting to a different approach.(argument for new asset class for pension funds)(Industry Overview)
March 3, 2003... Equity markets fall, pension funding levels weaken, markets slump further at the prospect of increased contributions from plan sponsors. It is not a very attractive picture. Alternatively, pension funds switch into bonds, markets rebound,...

Comment & Analysis: The possibility of inflation.(discussion of influence of commodity prices on inflation)(Industry Overview)
March 3, 2003... There are numerous worries that are haunting the equity markets, what with the immediate war threat of deflation, the double dip and so on. Companies are not willed to provide any guidance to the investment community which adds to the...

Leader: Smoothing over pension debt figures.(Industry Overview)
March 3, 2003... Who decides beauty parades? Is it the board of trustees or investment directors? Is it the consultant to whom the pension board turns as soon as the investment managers have made their pitches and left the room? Is it the sponsoring employer...

Survey: Netherlands - The writing is on the wall.(PVK guidelines for pensions discussed)(Interview)(Industry Overview)
March 3, 2003... In the Netherlands, consensus has always been king. A quiet wage agreement reached by government, labour and industry in the provincial city of Wassenaar ensured nearly two decades of ensuing prosperity. That same spirit brought Europe together...

Survey: Netherlands - Looking at the bigger picture.(report from PVK on funding gap in pension funds, discussed)(Industry Overview)
March 3, 2003... One oF the surest signs of confusion in the post 30 September debate in the Netherlands is that no one can seem to decide just how big the problem is. When the pensions regulator PVK wrote its letter, it predicted a E23bn funding gap based on...

Survey: Netherlands - A clear and present danger.(Dutch pensions discussed)(Industry Overview)
March 3, 2003... With equity markets near freefall - and some 50% of Dutch pension assets tied up in equities - the PVK was pointing in September to a real danger that eroded reserves could turn into a long-term funding problem. And fund managers reacted...

Survey: France - The hard road to convincing the populace.(pension reform discussed)(Industry Overview)
March 3, 2003... In mid-January, prime minister Jean-Pierre Raffarin signalled his determination to make pension progress in France by announcing a reform bill before June. This is despite a rejection of reform by 53% of one of France's largest unions,...

Survey: France - A step in the right direction?(French pension reform discussed)(Industry Overview)
March 3, 2003... While the icons of the French private sector - Peugeot Citroen, TotalFinaElf and others - are quietly taking advantage of 2001 legislation to introduce capitalised savings plans to their employees, it is the icons of the French public sector,...

Research Update: Estimating one's lifespan.(research for retirement planning discussed)(Industry Overview)
March 3, 2003... In making decisions to save for retirement, individuals must implicitly make some assumptions about how long they are likely to live. Even if individuals are to annuitise, the timing of when they buy an annuity as well as the type of annuity...

Fund Portrait: West Midlands - Saving money on the web.(occupational pension funds discussed)(Company Profile)
March 3, 2003... Half of the battle for any occupational pension fund these days is communication with members. Few employees in the past concerned themselves with their pension rights; the issue reminded them of getting old. Now the world has changed....

Pensions Snapshot: Estonia.(Industry Overview)
March 3, 2003... Estonia is midway through an ambitious and so-far, successful restructuring of its pension system.This follows the three pillar 'World Bank model'. First pillar state provision continues on a pay-as-you-go basis. This is funded out of a 33% pay...

Pensions Snapshot: Estonia - In brief.
March 3, 2003... - Estonia has its own national pension fund indices. Launched on 1 July 2002, these show the weighted average yield of pension funds. The Estonian Pension Index (EPI) is a general index which includes all qualifying pension funds. This is split...

News: Ministry wants to claw back pension benefits.
March 17, 2003... Pensioners may soon have to help bail out Switzerland's troubled occupational pension schemes. The unprecedented move to make retired members pay money back is being proposed by the Swiss social insurance ministry (BSV) in Bern. The BSV's...

News: Alternatives rise 20% in 2002 for Dutch funds.
March 17, 2003... Dutch funds earned more than 20% from private equity, commodities and hedge funds last year - rays of light in an otherwise miserable year that saw average fund values drop by -8.1%. Although just 1% of funds were tied up in alternative...

News: Legislation to pave the way for investment in hedge funds.
March 17, 2003... The German government plans to amend the investment rules for Pensionskassen (pension funds), Spezialfonds (special investment funds used by instititional investors) and other institutional investors, with a view to allowing these institutions...

Scheme News: SFr2.7bn hole derails Swiss.
March 17, 2003... Swiss railways company, Bern-based Schweizerische Bundesbahnen (SBB), has asked the Swiss state to help finance a SFr2.7bn (E1.84bn) funding deficit in its corporate pension fund. If the government meets this demand, other state-owned...

Scheme News: Corporates reject S&P's action related to pension liabilities.(Brief Article)
March 17, 2003... Deutsche Post, Linde and Group Michelin are among the firms contesting rating agency Standard & Poor's (S&P) move to place their credit ratings on negative watch because of their pension liabilities. In February, S&P put 10 European corporates...

Asset Management News: Money speaks volumes.(Brief Article)
March 17, 2003... The AVERAGE Spanish pension fund's allocation to cash and money market instruments is the highest it has been since the end of the bull market. The allocation grew from 19.2% at the end of 2001 to 22.3% at the end of last year. But the...

Asset Management News: AXA Private Equity in fund-raising.(Brief Article)
March 17, 2003... Paris-based AXA Private Equity is raising funds for a E250m hybrid primary and secondary fund of funds, focusing on mid cap funds and is hiring three staff for its Frankfurt office. The new fund will invest simultaneously in primary private...

People on the move: Porter hits pole position.(Brief Article)
March 17, 2003... JPMorgan Fleming Asset Management has appointed Martin Porter global head of equities. He was previously chief investment officer of the Fleming equity and balanced process globally. Pablo Forero, current chief investment officer for...

People on the move: Graham goes Platinum.(Brief Article)
March 17, 2003... Platinum Capital Management, the international hedge fund distributor, has recruited Paul J Graham as director for Europe and the UK. His responsibilities include restructuring fund distribution throughout the Continent and offshore. ...

People on the move: Lockyer heads for MLIM.(Brief Article)
March 17, 2003... Peter Lockyer, former head of risk and performance for the world ex-US at Merrill Lynch Investment Managers, has moved to Allianz Dresdner Asset Management as global head of performance and portfolio risk for its equity division. Lockyer...

People on the move: Cowell moves to Morley.(Brief Article)
March 17, 2003... Frances Cowell has joined London-based Morley Fund Management's portfolio risk team. Morley has been increasing the use of derivatives and other non-traditional investment techniques to enhance the return and hedge the risk of conventional...

Asset Management News: No evidence for optimism.(Brief Article)
March 17, 2003... Invesco has added its name to the list of doomsayers, forecasting a decline of 15% for the S&P500 over the next decade. Lower stock returns, which will very likely be accompanied by lower bond yields, are something investors may have to...

Asset Management News: UBS rebuilds property and alternative operations.(Brief Article)
March 17, 2003... UBS Global Asset Management has created two new global business platforms, pooling its alternative and quantitative capabilities and its real estate operations, respectively. The move is a bid to tap the growth potential of these services more...

Asset Management News: Restructuring triggers ratings reprieve for CPR.(Brief Article)
March 17, 2003... Fitch-AMR has taken Paris-based CPR off of its watch list in spite of "above average staff turnover". Last year, CPR was repositioned within the asset management business of Credit Agricole, causing some instability including some recent...

Asset Management News: Allianz Dresdner expects E510bn growth this decade.
March 17, 2003... Annual average growth for the European pensions market will be 7.5% for the rest of this decade, according to Allianz Dresdner Asset Management. It believes that the most stable growth will be in private insurance schemes. More...

Comment & Analysis: One size in Europe does not fit all.
March 17, 2003... Without a self-correcting mechanism like transfer payments, a single monetary policy is by its very design, pro-cyclical and destabilising. Countries growing fast and in danger of overheating face low or negative real interest rates and have no...

Comment & Analysis: Preparing for darker days.
March 17, 2003... Oil prices rose recently, reaching nearly US$40, which is close to the all- time high of US$41.15 recorded back in October 1990. This appears to be a logical development as the market continues to believe that the war with Iraq will start very...

Leader: A chronic lack of optimism.
March 17, 2003... Unless you expect a profound economic depression over the next 10 years, government bonds are not going to offer high real returns. UK gilts issued at lower nominal yields - the current yield is a poor 4.25% - mostly delivered negative real...

Survey: Luxembourg - Seen to be ready.
March 17, 2003... Will Luxembourg capture the market for cross-border pensions in Europe? Not from want of trying, but the matter is yet undecided. True, the Grand Duchy has got off to a good start. "We should be five years ahead of other member states," says...

Survey: Luxembourg - At the vanguard of implementing legislation.
March 17, 2003... Dexia Life & Pensions and KMPG Luxembourg were among the first to set up pension schemes under the 1999 legislation. KPMG established a Sepcav for some 50 of its employees in the Grand Duchy. "We felt we had to show it could be done rapidly and...

Investment Research: Sterling bond management: a new era.
March 17, 2003... Recent equity market performance and the introduction of new accounting standard, FRS17, have contributed to an increased interest in fixed income among UK pension funds. Many companies are considering a higher allocation to fixed income to...

National Statistics: Netherlands - Hope in short supply.
March 17, 2003... Dutch pension funds posted another year of negative returns in 2002, according to the latest statistics from WM Comp any. The average return for the universe, which excludes ABP and PGGM due to their size, was -8.1% - the lowest return since...

Research Update: Measuring willingness to save for retirement.
March 17, 2003... ONE OF the most fundamental questions that is asked by pensions policy issues is whether individuals are willing to voluntarily to save enough in the right forms for retirement. It is accepted wisdom that is that individuals will not save...

Pensions Snapshot: Latvia.
March 17, 2003... "In the mid-1990s before reform, we had about as complete a pay-as-you-go pension system as possible," recalls Andris Berzins, leader of the Latvian Way party and a former prime minister of Latvia. "One thing was clear; we could not afford it."...

Pensions Snapshot: Latvia - In brief.
March 17, 2003... - Legislation introducing a third pillar was passed by the Saeima, Latvia's parliament in 1997. Premium tax relief of up to 10% of gross relevant earnings have done little to encourage wide membership of these plans. Membership of all third...