Wednesday people roundup

first_imgPwC – Andrew Drake and Selina Hall have joined the consultancy as partner and senior manager, respectively. Drake, a former managing director at River and Mercantile, will lead the regional pensions investment consultancy. Hall, meanwhile, re-joins PwC after a short period at Ensign Pensions, and will advise trustees on pension management.bfinance – Frithjof van Zyp has been named director of the consultancy’s Australian business. Van Zyp joins after a decade at eVestement, for which he established a Hong Kong office and where he was most recently senior vice-president and head of data services. Lægernes Pensionskasse, PKA, Millennium Management, Credit Suisse Asset Management, Aon Hewitt, Willis Towers Watson, PwC, River and Mercantile, Ensign Pensions, bfinance, eVestementLægernes Pensionskasse — Merete Lykke Rasmussen has been appointed chief actuary and head of the actuarial department at the Danish Doctors’ fund, effective from 1 June. She comes to the pension fund from PKA, where she also held the role of chief actuary. Before that, she worked at Industriens Pension and KPMG, among other employers. Lykke Rasmussen is taking over at Lægernes Pensionskasse from Gyrithe Juel Grindsted, who wanted to take a step back after more than 25 years in the role. Juel Grindsted will continue working at the doctors’ fund as a senior actuary.Millennium Management – Robert Jain has joined the manager as co-CIO. The move will see Jain leave Credit Suisse after two decades, where he was most recently global head of Credit Suisse Asset Management.Aon Hewitt – Chris Inman has joined the consultancy’s DC team as principal investment consultant in charge of its DC investment advisory service. Inman, who previously worked at Willis Towers Watson and Russell Investments, will also join Aon’s DC investment committee.last_img read more

Unions: Divert tax cuts to Ireland’s mandatory pension system

first_imgFrom €18,668.01 to €70,044.005.5% He stressed that the proposed system would only be for those not currently in a second-pillar scheme, as the ICTU does not want to see the approach “replace the few good pension arrangements around”.National Superannuation FundWhelan said the ICTU would like Ireland’s revenue office to be in charge of collecting contributions, which would be paid into a single, central, defined contribution (DC) pension fund – the National Superannuation Fund – administered by a trustee board. The pension pot would be transferable, in that it would follow employees if and when they joined a new employer.Whelan warned against the involvement of a private company pursuing a profit motive for such a scheme.“The danger of people just milking this system would be ever-present, so we are fairly determined to avoid that if we can,” he said.However, he accepted private sector asset managers would have a role in investing any contributions.The emphasis on a potentially government-backed not-for-profit provider echoes the statutory nature of a number of large pension funds, such as Sweden’s AP7, the UK’s National Employment Savings Trust and the Cook Islands’ National Superannuation Fund.Similarly, the Canadian provincial government of Ontario is to launch the Ontario Retirement Pension Plan in 2018 – with a compulsory, employer-matched contribution of 1.9% for workers not currently saving into a private-sector plan.Whelan said initial discussions with Ireland’s employer association, IBEC, had already taken place, and that he was “very pleasantly surprised” to see it broadly support ICTU’s proposal.He added: “They’ve no objection to paying into a scheme, so long as they have certainty about their level of contribution.”IBEC’s head of education and social policy Tony Donohoe agreed there was little point in phasing out the USC, only to introduce “a similar tax in the form of a universal pension scheme in the future”. He also said New Zealand’s approach of having a regularly tendered list of default Superannuation providers – then assigned by the New Zealand revenue office if beneficiaries made no active provider choice – was worth considering.IBEC has previously offered qualified support to the Universal Retirement Savings Group (URSG), convened by the government in early 2015 to consider the introduction of either an auto-enrolment-based or mandatory second-pillar system.Whelan explained that the ICTU’s proposal had not been submitted to the URSG, as the initial consultation period in early 2015 had not allowed it sufficient time to consult its union member base.Successive Irish governments have weighed up, or pledged, the introduction of an auto-enrolment system, to no avail.However, the two largest parties in the current parliament both pledged before February’s election their support for such a model. From €70,044.01 to €100,000.008% From €12,012.01 to €18,668.003% Income bandRate Irish unions have called on the government to introduce a mandatory second-pillar defined pension system, suggesting it should forego a planned tax cut and use the income as the initial contribution.Fergus Whelan, head of pension policy at the Irish Congress of Trade Unions (ICTU), told IPE the country was facing a “huge crisis” due to low pension coverage for private sector workers and declining pension adequacy for those in Irish public sector schemes.He said the union umbrella group was supporting the introduction of a mandatory, universal retirement system for those not currently saving into a pension fund, although he noted its proposal had not been put to the Universal Retirement Savings Group (URSG) convened by the government last year. Conceding that the ICTU had “probably missed the boat”, Whelan nevertheless suggested eligible workers’ initial contributions for the proposed universal system be diverted from the Universal Social Charge (USC), a progressive tax on income which the new Fine Gael-led minority government has pledged to phase out. Introduced in 2011, the USC is levied at a rate of 1% on income up to €12,012, increasing gradually to 8% on income above €100,000.“So, what we are saying is that, for any worker who is not in a scheme, instead of giving them back their Universal Social Charge, the Universal Social Charge should be their initial contribution to the scheme,” Whelan said.“That should be matched by a contribution from the employers.”USC rates in 2016USC rates in 2016  Up to €12,0121% Any PAYE income over €100,0008%last_img read more

‘I understand’, commissioner Hill tells pension funds on EMIR concerns

first_imgThe feedback also indicated the need for the Commission to take care with further reforms to avoid reducing market liquidity, added Hill.Introducing the conference before Hill’s arrival, Janwillem Bouma, chair of PensionsEurope and managing director of two Shell pension funds in the Netherlands, emphasised the need for a “proportionate regulatory environment that reflects the specificities of pension funds, which have a social purpose”.EMIR was one of the pieces of EU financial legislation Bouma said should be changed, arguing that its interaction with bank capital rules were having a negative impact on pension funds.“At present, the cumulative impact of bank capital requirements and EMIR is overly burdensome for pension funds,” said Bouma. Hill has previously said “it should be possible to make EMIR more proportionate” while still mitigating systemic risk in derivatives markets. The European Commission will feed pension funds’ calls for a permanent exemption from central clearing obligations into a review of the European Market Infrastructure Regulation (EMIR) that is coming to a close, commissioner Jonathan Hill told delegates at a PensionsEurope conference in Brussels today.“I know pension funds have called for a permanent exemption from some of EMIR’s rules on central clearing,” he said. “I understand your concern.”He made the comments as part of a summary of feedback the Commission received to a consultation on how financial services legislation was working, and how the Commission was responding to this.“Respondents to our Call for Evidence have said that, overall, the measures put in place following the crisis are working well, but that, in places, our legislation is not proportionate enough, that it could be weighing down the amount of financing available to the wider economy and that the compliance burden is too heavy,” he said. last_img read more

Church of England Pension Board chief executive dies

first_imgBernadette Kenny, chief executive of the Church of England Pensions Board (CEPB), has died aged 60.Kenny joined the CEPB as chief executive in February 2011 after a career in the civil service.During her tenure, she saw through significant changes to the CEPB itself and to the National Church Institutions, a group of entities which include The Church Commissioners. A statement from the Church said the changes had ensured these institutions were well-placed to serve it for years to come.Jonathan Spencer, chair, CEPB, said: “We have lost more than a brilliant colleague, we have lost a force for good.” He continued: “The issuance of the £100m housing bond, changes to the retirement housing scheme, and innovative funding arrangements to derisk the pension schemes are just a few examples of the legacy she leaves behind.”Kenny was also a champion of greater diversity and inclusion in the workplace, recently helping to launch a network for black, Asian and minority ethnic colleagues.She studied law at the University of Manchester before qualifying as a barrister. She then joined the civil service as a government legal adviser, working in a range of legal, policy and operational management roles, before becoming change director at the then-Department for Constitutional Affairs.Kenny spent four months as interim chief executive of the Royal Parks, before moving to HM Revenue and Customs as director general for personal tax in 2005.Spencer is overseeing interim arrangements for the leadership of the CEPB.The CEPB, which provides pensions for clergy and church workers, currently manages funds totalling £2.3bn (€2.6bn), and its schemes have over 38,000 members.It made a record investment return of 21.1% for the 2016 calendar year.last_img read more

UK asset management body calls for bond market data boosts

first_imgA lack of data in the fixed income market posed a challenge to this, however, according to the IA. “The absence of data in parts of the fixed income universe can make best execution difficult to frame,” it said.Using a quantitative methodology derived from the equity markets in illiquid fixed income markets was “a blunt instrument” without the data to support it.Although the bond market would be able to move towards a more quantifiable model of assessing best execution as it became increasingly electronic, this evolution was taking place “slowly and unevenly” and data was still “excessively expensive”, according to the association.Calls to actionTo increase the availability of data in the fixed income market and improve transparency, the IA recommended the development of a “consolidated tape”, an electronic system that would provide real-time data on trading volume and price.It also recommended regulators take steps to reduce data costs.Galina Dimitrova, director of investment and capital markets at the IA, said: “Asset managers are concerned that the poor availability of data in the bond market is undermining transparency.“Our recommendations aim to improve the availability of data, which will ultimately deliver better returns for end investors.”Another welcome measure, according to the IA’s fixed income traders committee, would be a limited easing of capital requirements on brokers to allow them to hold more inventory and enhance market liquidity. The UK’s asset management trade body has proposed a set of measures to increase transparency in fixed income markets in light of new regulatory requirements for managers to demonstrate “best execution” of bond orders.The Investment Association (IA) also called for a “more nuanced” approach to bond trading, saying execution had to be understood in the context of the investment process.“If this context is absent in the analysis, it will simply not make sense, like trying to make sense of a story based only on the last page,” the trade body said in a paper.Under MiFID II, asset managers have to be able to demonstrate that they have taken “all sufficient steps” to achieve the best possible result for clients when executing trade orders.last_img read more

Dutch watchdog offers assistance in implementing IORP II rules

first_imgVan Vollenhoven said she could imagine that large pension funds would place the important positions within their own administrative functions, whereas it would be likely that board members would take on these tasks at smaller schemes.The personal assignment of these functions would also pose a challenge, because in most cases DNB had to approve appointments, the supervisory director said.Pensions lawyer Frank Doornik described DNB’s offer as “very positive”, adding that the regulator should repeat this for other subjects.However, he noted that the key functions could trigger questions about the collective responsibility and accountability of a pension fund’s board.“What does it mean for the division of roles if a trustee for internal auditing is to report to the board and the internal supervision about things that have gone wrong?” he asked. “Would the board still be a collective one in this case?”In Doornik’s opinion, pension funds must be much more careful when recording their decisions and how they have been made.“This would not only apply to the decision itself, but to all considerations and all individual comments on the subject,” he said. Dutch supervisor De Nederlandsche Bank (DNB) has offered pension funds assistance in filling in key positions to comply with the EU-wide pensions directive IORP II.At the annual congress of the Institute for Pensions Education (IVP) last week, Gisella van Vollenhoven, DNB’s director for pension fund supervision, said the regulator had noticed that it was difficult to comply with the conditions set for the key functions of audit, actuarial matters and risk management.She said the watchdog was ready to provide advice, explaining that the support would depend on pension funds’ structure, governing bodies and scale.The introduction of key functions forms part of the pensions directive, which must be implemented across EU member states through local legislation before 13 January 2019. The Dutch Senate was expected to pass the legislation this week.last_img read more

​UK schemes set for 2.5% fall in liabilities after CMI model revamp

first_imgAon said the changes would decrease projected life expectancies and therefore scheme liabilities.Matthew Fletcher, senior longevity consultant at Aon, said: “While the pensions industry still expects mortality rates to improve, by increasing the weight placed on recent mortality improvements, the new model reflects the growing evidence that these improvements are likely to be slower in the near term than the historically high rates seen in the years up to 2011.”Meanwhile, Willis Towers Watson’s retirement business director and longevity specialist Stephen Caine said a six-month reduction in life expectancy at 65 could knock around 2.5% of the liabilities off a typical pension scheme. This translated to roughly £20bn (€23bn) for FTSE 350 scheme sponsors as a whole.Annual improvements in life expectancy between 2000 and 2011 produced an average increase of around 2%, but mortality improvements have slowed since 2011 to around 0.5% a year, according to Willis Towers Watson. UK defined benefit (DB) pension schemes are likely to see a 2.5% reduction in liabilities as a result  of a revision to the Continuous Mortality Investigation’s (CMI) life expectancy model for 2018, according to consultancies Aon and Willis Towers Watson.Releasing its latest projections, the CMI said there was a growing consensus in the industry that, although mortality would continue to improve, the rates of mortality improvement over the next decade would be slower than those seen in the first decade of this century.“When compared with the previous CMI 2017 model, cohort life expectancies at age 65 are around five months lower for both males and females, at 19.8 years and 22.4 years, respectively,” the CMI said.Changes to the latest mortality projections model from the CMI – which is owned by the UK’s Institute and Faculty of Actuaries – included data from across the UK population up to the end of 2018, putting more weight on the narrower mortality improvements in recent years.last_img read more

Would you pay $2m for this – in rent, for a single summer?

first_img Could this be our quirkiest house? The home is newly built and soon to be finished. Source: The former owner attempted to rent it out at $12,800 a week when she was struggling to land a sale – though she eventually let it go at a major discount for $10.138m. The front yard, with tennis court, long driveway and richlist neighbours. Source: 11/10 for this wine bar idea. Source:“Southampton Oceanfront Home Goes For $1.5M As A Summer Rental!” she tweeted.She told The New York Post that “in past years, we’ve hit the $1 million-plus rental mark, but this far surpasses it”.More from newsParks and wildlife the new lust-haves post coronavirus13 hours agoNoosa’s best beachfront penthouse is about to hit the market13 hours ago“People don’t go to the Hamptons to get away from New York. They go to see the same people they do business with in the city, but in a more casual setting.”If it is indeed just for the 12-week US summer season, that would amount to a crazy $US125,000 a week. Compare that to one of the most expensive rental prices asked in Queensland in recent times – $12,800 for Christopher Skase’s old house Bromley in Hamilton. Out with the old, in with the new The Skase home was laid out across nine blocks of land in bluechip Hamilton.The former owner had listed it at that price after it failed to land a sale. It’s not been revealed if anyone ever took up the rental offer either, but the home eventually sold for $10.138m – a major discount considering over $30m had been spent on the property over the years.The Hamptons home, listed on by Vincent Horcasitas of Saunders & Associates, has a significantly bigger pricetag at $76.335m of our dollars or around $US53.9m.Mr Horcasitas described it as a “prime oceanfront Meadow Lane address on Southampton’s highly prized Billionaire’s Row”. The estate was “ultramodern” on 2.96 acres and will have been newly completed by the time the tenants move in for the summer party season.It has over 11,000sq feet of living space with two master suites, a study, a VIP suite and six other bedroom suites on the first floor. Add to that an infinity edge pool and spa, a panorama of the ocean and sky, state of the art full kitchen with its own prep kitchen, oversized wine display, wet bar, home theatre, hard surface tennis court, 6.5 car garage under the house, extra parking for 10 vehicles, and a long walkway to the beach. The key to surviving your kids FOLLOW SOPHIE FOSTER ON FACEBOOK The Hamilton home built by Christopher Skase was on the rental market for $12,800 – making it the highest residential rental ever asked in the area.A staggering $12,800 a week may be the most expensive rent asked here — for Christopher Skase’s old house — but an ultramodern Hamptons’ home has blown everyone out of the water.The Southampton oceanfront home – in the mighty playground of the rich and famous of New York, the Hamptons – has just been rented out for the upcoming American summer at a whopping $US1.5m. In Australian dollars that’s $2.124m for a season.Even veteran New York real estate agent Dolly Lenz was impressed, calling it a “real estate record”. MORE REAL ESTATE NEWS Australia’s cheapest suburb is by the beach Seymour family buys $7.75m riverfront house The backyard with pool, deck and a long walkway to the beach. Source: Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 0:58Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:58 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 Rate1xFullscreenHow much do I need to retire?00:58 The property at 1400 Meadow Ln, Southampton, NY, has been rented out for the summer for $1.5m. Source: Christopher Skase had this home in Hamilton built, reportedly for about $35m.last_img read more

Resort-style environment draws in buyers for record prices

first_imgLand sales at Sanctuary Cover are on the rise. Photo: SuppliedEstablished homes on the Sanctuary Cove Pines golf course have skyrocketed in value – the latest Sanctuary Cove records show.With the soaring prices of established golf course-fronting homes, the rush is on for the final release o f land at The Pines. With only 16 lots remaining, potential buyers are being urged to lock in land now.Located in a prime position overlooking one of the country’s top golf courses, Sanctuary Pines is part of an award-winning, master planned development with a range of quality golf course-fronting sites. Since going to market in 2017, half of the 32 lots in Sanctuary Pines have been secured, with land currently selling upwards from $995,000.More from newsParks and wildlife the new lust-haves post coronavirus13 hours agoNoosa’s best beachfront penthouse is about to hit the market13 hours agoOne home recently sold for $6.5 million, with another selling for $5.5 million.Mulpha International general manager John Hughes said the record-setting prices at Sanctuary Cove could represent the most expensive golf course property in Australia.“There is a distinct lack of golf course-fronting land in Sanctuary Cove, and there are currently very few lots on the market for resale,” Mr Hughes said. “Waterfront land has always been in high demand, but we are now seeing demand for golf course-fronting land rise to similar levels.”Mr Hughes said the remaining 16 lots in the final release of Sanctuary Pines offered buyers land in a pristine, resort-style environment on the Gold Coast.With large, gently sloping home sites ranging from 760sq m to 1129sq m, the lots offer a luxurious living opportunity for those seeking to make the most of the estate’s iconic resort lifestyle, fully-integrated amenities and world-class recreational facilities.last_img read more

Major growth suburb to be home to a new boutique development

first_imgBloom on Wesley at Lutwyche. Photo: SuppliedA six-storey development in one of Brisbane’s northern suburbs is offering buyers large oversized apartments with elevated city views.Boutique apartment builder developer Raise Projects’ latest development Bloom on Wesley is in the city-fringe of Lutwyche. Bloom on Wesley at Lutwyche.Bloom on Wesley incorporates 36 spacious two-bedroom plus study, three-bedroom plus study and three-bedroom plus multi-purpose room apartments with resort-style amenities featuring a rooftop infinity pool, gymnasium, barbecue and recreational area.The apartments feature up to 159sq m in a variety of floor plans, with modern living spaces and large balconies or courtyards to 66sq m.Prices of apartments start from $495,000 for two-bedroom apartments and from $645,000 for three-bedroom apartments. More from newsParks and wildlife the new lust-haves post coronavirus12 hours agoNoosa’s best beachfront penthouse is about to hit the market12 hours agoCheck out the views at Bloom on Wesley. Photo: SuppliedRaise Projects director Ramy Raymond said it was exciting to have the opportunity to develop such a perfectly positioned site in a major growth suburb.“We wanted to make the most of the location by creating a contemporary urban apartment building that caters for the desires of its residents,’’ Mr Raymond said.“Our architect has designed the building to maximise light and space while delivering on our commitment to creating oversize living spaces that are innovative, sophisticated and sustainable.“Our vision is to develop a building of uncompromising quality for residents who want to upsize their life by combining the convenience of urban apartment living with all the comforts and space of a house.’’Bloom on Wesley marketing manager and TOTAL Property Group managing director Adrian Parsons said Lutwyche was fast becoming a lifestyle destination of choice for home buyers looking for property in Brisbane.“The Bloom on Wesley development site is perfectly positioned in an area where we are seeing increasingly high demand,” he said.“Lutwyche has been undergoing a transformation and is emerging as a city-fringe hotspot for urban living.“There has been a spike in interest from people who are looking for spacious apartments in established northern suburbs like Lutwyche where they can enjoy a cosmopolitan lifestyle and fast, easy access to Brisbane’s CBD.“Bloom residents will be able to leave their car at home and walk to do just about anything; from browsing the quirky shops along the shopping strip to picking up some groceries at Lutwyche City Shopping Centre or popping on a bus or train for a short ride to the city, the options are endless.”center_img Imagine hanging around here during the summer months at Bloom on Wesley.Mr Parsons said there was an opportunity for both owner occupiers and investors.“We are seeing very strong interest in Bloom’s spacious and competitively-priced apartments from buyers and tenants,” he said.The site is 350m from the Lutwyche City Shopping Centre, which is undergoing a $60 million refurbishment, and is handy to many facilities on Brisbane’s north including the Royal Brisbane and Women’s Hospital 2.8km away, the QUT university campus and many private and public schools within 5km.last_img read more