EIOPA backs changes to capital requirements for debt securitisation

first_imgTo identify the less risky securitisations, EIOPA has developed a set of criteria related to the structure of securitisation, the quality of the underlying assets, the underwriting processes and the transparency for investors.The report also confirms the currently proposed risk charges for a number of investments including private equity, loans to small and medium-sized enterprises and socially responsible investments.The securitisation recalibration proposal is an extension of a previous EIOPA proposal, from 2011.The new approach retains the criteria, modified in relation to duration, rating and seniority.These criteria are complemented by requirements on the structure of the securitisation, the quality of the underlying assets, the underwriting process and the transparency for investors.Securitisations that meet all these criteria – called Type A securitisations – are expected to have a lower risk profile than those that do not (Type B securitisations).Some of the criteria are adapted from the eligibility criteria for securitisations the European Central Bank (ECB) uses in its refinancing operations.However, EIOPA said the more favourable treatment in terms of spread risk charges for qualifying securitisations is only justifiable if there can be a sufficient degree of confidence in their better risk profile.It is therefore suggesting transitional arrangements to mitigate potential negative effects.EIOPA said that, during the course of its research, it was confronted with a lack of comprehensive, reliable and publicly available performance data, especially for infrastructure investments.It said it intends to work on closing these data gaps in co-operation with the relevant parties.Gabriel Bernardino, chairman at EIOPA, said: “Our analysis has shown that those securitisation issues meeting a set of quality criteria have a good track record of performance and, from a supervisory perspective, should meet lower capital requirements.“We are confident the new classification of debt securitisation allows for a better alignment between risk and capital management and, therefore, can support the long-term growth objectives in a prudent way.” The European Insurance and Occupational Pensions Authority (EIOPA) has published proposals for the treatment of debt securitisations that would introduce different risk charges for securitisations with higher or lower risk profiles.The Technical Report on Standard Formula Design and Calibration for Certain Long-Term Investments was prepared to examine whether, in the light of the current economic situation, the capital requirements for certain long-term investments under Solvency II can be reduced without jeopardising the prudential nature of the regime.EIOPA’s key proposal is to introduce a more granular treatment of securitisations.Instead of the uniform 7% spread risk charge for AAA-rated securitisations that is currently proposed, EIOPA recommends decreasing the charges for less risky issues to 4.3%, while increasing those for riskier ones to 12.5%.last_img read more

Wednesday people roundup

first_imgArtemis Investment Management – Raheel Altaf has joined Artemis Investment Management as a fund manager. He will work alongside Philip Wolstencroft and Peter Saacke, managing the three funds they run: Artemis Capital, European Growth and Global Growth. Altaf was a portfolio manager at Fulcrum Asset Management until December 2013, and before then portfolio manager at Fidelity International. ERI Scientific Beta – ERI Scientific Beta, the smart beta index unit of the EDHEC-Risk Institute, has announced the make-up of its international executive management team covering Boston, London, Nice, Paris, Singapore and Tokyo. The team consists of Noël Amenc, Lionel Martellini, Patrice Retkowsky, Reynald Mauguin, Mélanie Ruiz, Candice Lebastard, Felix Goltz and Peter O’Kelly. Insight Investment – Svein Floden has been hired by Insight Investment as head of business development for liquid alternatives in the Americas. He will report to the UK asset manager’s global head of distribution Philip Anker. Floden joins Insight from Deutsche Bank Asset and Wealth Management, where he was most recently head of hedge fund sales and marketing for Wealth Management Americas. Before working at Deutsche, he was at Citigroup’s Private Bank in New York.Standard Life Investments/Jupiter – Matthew Williams is joining Standard Life Investments as manager of its Global Emerging Markets (GEM) Equity Unconstrained fund. He will be supported by Ronnie Petrie, head of global emerging markets. Williams has been deputy manager of the GEM Equity Unconstrained SICAV since the fund started and has been in the emerging market team since 2010. The appointment follows the resignation of Ross Teverson, an investment director within the GEM team. Teversen has now joined Jupiter as head of strategy for global emerging markets. He will start at the asset manager in November, after 15 years at Standard Life Investments. Pensions Trust, AP2, Allianz Global Investors, Artemis, ERI Scientific Beta, Insight Investment, Standard Life Investments, JupiterPensions Trust – Paul Murphy has been appointed head of strategy and business development at the Pensions Trust. His most recent prior role was director of corporate development at the Peoples Pension. In the newly created role at the trust, Murphy will lead strategic business development, covering areas including business planning, business development and PR and communications. The trust said the role had been created as part of a restructuring exercise.AP2 – Johnny Capor has been appointed by the Swedish government as a new member of AP2’s board of directors. He is CFO at Sweden’s retail cooperative Kooperativa Förbundet (KF). Allianz Global Investors – Mark Guirey has been hired as director of UK institutional business development at Allianz Global Investors (AllianzGI). He will be based in London. Guirey’s most recent role was sales director in BlackRock’s UK institutional business. He will report to Andy Wiggins, head of UK institutional at AllianzGI. last_img read more

Norway slashes SWF’s expected return to 3%

first_imgBroad political support had been a prerequisite for increasing the equity share – currently 62.5% – she said, as had the ability to adhere to the chosen investment strategy in periods of market turbulence.All in all, said Jensen, the government considered an equity share of 70% to carry acceptable risk. “The downwards revision of the return estimate underpins the long investment horizon of the fund, a prerequisite for holding a high share of equities,” she added.In October, the Mork Commission told the Norwegian government that the GPFG should up its equity allocation to 70%, adding that the expected real rate of return for the overal portfolio was considerably less than 4%.However, in December, Norges Bank — which manages the fund — recommended to the government that the equity share be lifted to 75%.The government will now submit the proposals to parliament.Under Norwegian fiscal rules, spending of revenues generated by petroleum activities and GPFG’s investments should correspond to the sovereign fund’s expected real rate of return. However, despite the proposed revision to this figure the government did not propose changing how much of the GPFG’s revenue the government can spend.Prime minister Erna Solberg told the news conference: “The government’s proposals will support a continued, responsible management of the considerable oil and gas resources. The proposed changes strengthen the fiscal framework we have for managing petroleum revenues.”This would help make sure that future generations could benefit from these revenues, she added. Norway’s giant former oil fund has cut its return forecast and plans to increase its equity allocation to 70%, according to government plans unveiled yesterday.The NOK7.5trn (€846bn) Government Pension Fund Global (GPFG) reduced its expected return to 3% from 4%. The expected rate of return has been at 4% since 2001.In a news conference, Norway’s finance minister Siv Jensen explained the decision to raise the share of equities in the sovereign wealth fund’s strategic benchmark index, saying the expected return on equities was more than that of bonds, so the move would support the aim of increasing the fund’s purchasing power.“At the same time, equities carry higher risks,” she added. “The proposal to increase the equity share is based on a comprehensive assessment of the recommendations received.”last_img read more

Polish pension fund sector set for another merger

first_imgPoland’s biggest insurer has struck an agreement to take over pension funds run by one of its biggest banks.Under an agreement reached between state-owned PZU Life and Bank Pekao – Poland’s second biggest bank by assets – PZU’s pension management company is to take over the open and voluntary pension funds run by Pekao Pioneer.The transaction would shrink the number of second-pillar open pension funds (OFEs) to 10, and would be the second in the space of 12 months, following Aegon’s takeover of Nordea’s pension fund in November.Currently OFE PZU “Złota Jesień” is the third biggest by membership and assets, behind those of Nationale-Nederlanden and Aviva BZ WBK. At the end of October, according to the Polish Financial Supervision Authority (KNF), it had net assets of PLN23.5bn (€5.5bn) and a membership of 2.1m, accounting for 13% of total industry assets and 13.2% of the total pension fund membership.The Pekao OFE, whose managing company is owned by Bank Pekao and Pioneer Global Asset Management Company, was the smallest in the industry, with asset and membership shares of 1.5% and 2% respectively.In the case of voluntary pension funds, as of the end of March PZU had PLN32.1m in assets and Pekao Pioneer PLN60.2m.The arrangement is expected to be completed by mid-2018, pending approval from the KNF.Pekao’s relatively small share of the OFE market should address one of the regulator’s main concerns – the avoidance of excessive market concentration – when it considers fund mergers.The consolidation became necessary after Italy’s UniCredit sold its 32.8% controlling stake in Bank Pekao in June to PZU and the Polish Development Fund, with the insurer taking 20%.Under Polish law, an entity and its connected companies can only be shareholders in one and the same pension company, and the event of a merger or acquisition of the type proposed the parties have to establish a new entity to remain compliant.Meanwhile, PZU Group’s recent transactions consolidated its position as one of the country’s biggest investment groups, as well as the government’s policy to “re-Polonise” its financial sector.PZU Life accounts for more than a third of gross written insurance premiums, and is the market leader in employee pension programmes, managing 376 of the 1,036 plans of the end of last year. PZU’s investment fund was second with 122.last_img read more

Dutch pension funds have limited stake in domestic green bonds

first_imgDutch pension funds have a limited stake in locally issued corporate green bonds, according to IPE’s Dutch sister publication Pensioen Pro.Drawing on statistics from regulator De Nederlandsche Bank (DNB), it found that pension funds had provided €800m of the total €20.7bn invested in green bonds issued by local banks, energy firms and Netherlands-based financial holdings of foreign energy companies.Dutch banks and insurers owned €600m of Dutch green bonds, and the remaining €19.4bn was purchased by foreign investors.DNB only included assets that were subject to the green bond principles set by the Climate Bonds Initiative (CBI), a not-for-profit initiative from the financial sector. Currently, 35 bonds issued by 12 Dutch companies meet these criteria. The €414bn civil service scheme ABP said it had invested a total of €751m in 24 local green bonds, whereas it had invested in 102 green bonds in total with a combined value of almost €3.5bn.PGGM, the €215bn asset manager for the large healthcare scheme PFZW, said its combined holdings of green bonds were worth €1.6bn, of which just €42m was invested in Dutch green bonds.The asset manager – which has sold green bonds issued by ING, ABN Amro and energy firm Alliander – said there was no specific reason for its relatively small stake in local green corporate bonds.“We seek proper investments worldwide, which could also involve investments in the Netherlands,” a spokesman for PGGM said.Dutch pension funds are expected to increase their investments in local green bonds.Recently, Dutch finance minister Wopke Hoekstra announced that the Dutch state would start issuing green bonds meeting the CBI principles, estimating the annual potential at between €3.5bn and €5bn.ABP, PGGM and MN – the €130bn asset manager for the large metal industry schemes PME and PMT – all backed a recent green bond issued by Schiphol Group, the owner of Amsterdam’s main airport. Schiphol raised €500m from the issuance and has said needed to raise €1.2bn to meet its sustainability plans by 2023.MN said that it would have liked to investment more than the €9m it had been granted as part of Schiphol Group’s issue. ABP and PGGM bought €15m and €10m, respectively, of Schiphol Group’s green bonds.last_img read more

​Danish pension funds improve in latest WWF climate ranking

first_imgAll of the pension funds covered by the 2018 analysis scored higher this year. Velliv — the former Nordea Liv & Pension Danmark, was not scored in 2018 as it was considered a new pension fund.“Danish pension funds have heard the planet’s distress call”Bo Øksnebjerg, chief executive of WWF DenmarkBo Øksnebjerg, chief executive of WWF Denmark, said: “Fortunately, Danish pension funds have heard the planet’s distress call.”He said it was very positive that the pensions sector supported the Danish government’s climate ambitions and had committed to invest an additional DKK350bn (€47bn) in the green transition by 2030.Room for improvementAccording to Øksnebjerg, for the first time a majority of the pension funds surveyed had included the Paris Agreement in their investment policies, excluded selected companies on the basis of climate considerations, and formulated objectives to increase investment in green energy technology.“But even more must happen if we are to reach the Paris Agreement’s goal of keeping the global temperature rise below 1.5 degrees,” he said.Outlining further steps that need to be taken by the pension fund sector, the WWF said that although almost half of the pension funds had systematically integrated the Paris Agreement into their investment, they all needed to come on board and increase the level of ambition to the 1.5-degree target.More than half of the pension funds had formulated goals to increase investment in green energy, but several still had to express a specific time horizon, amount and scope, it said.Regarding green investments, the charity said that in general there had been an increase in the amount and proportion of green energy investments, but the latter was still small. It reported an emerging trend for pension funds to divest fossil fuel holdings, with Lærernes Pension, PKA and MP Pension leading the way with divestment strategies, but said these could be boosted further to include all fossil energy types.Pension funds welcome competition, scrutinyMany of the pension funds shared their thoughts on the WWF’s report when contacted by IPE. PKAPKA hailed its success in the 2019 report, in being the highest scoring pension fund for the fifth year in a row. Danish pension funds surveyed by conservation organisation WWF for its latest annual climate report all got higher scores than last year, but the charity’s chief executive said more remains to be done.In comments to IPE, the pension funds shared a roughly similar perspective.The 2019 study examined the 16 biggest Danish pension funds’ systematic integration of climate considerations, investment policies, climate targets and transparency.PKA and MP Pension were ranked the highest, each scoring 11 points out of 12 possible. While PKA has maintained its position as (joint) leader and increased its score by two points from the 2018 ranking, MP Pension’s score almost doubled from six points last year. “We are just as pleased that we have had so much competition this year”Peter Damgaard Jensen, PKA chief executivePeter Damgaard Jensen, PKA’s chief executive, said: “We are really happy with our first place position, but we are just as pleased that we have had so much competition this year.”This also meant PKA would have to make even more effort to stay on top, he said, adding that this was a challenge the firm was happy to take on.MP PensionMP Pension CIO Anders Schelde told IPE that first and foremost, he was pleased that pension funds in Denmark were succeeding to various degrees in taking the climate challenge seriously, with all funds moving in the right direction.“It seems very positive — and for MP Pension too, this is something that is very high on our agenda and that of our members, so it is nice to have this recognition,” he said.Schelde agreed with the WWF’s commentary that more still had to be done by the pension fund sector in terms of climate.“But I don’t think it’s a big problem — it’s a transition that is going to happen over several decades, provided we keep up the momentum,” he said.Doing the paperwork and getting climate policies in place was the easy part, he said, adding that what needed to be done now by the pensions sector was to allocate more capital to the green transition.PenSam Torsten Fels, PenSam CEOPenSam scored 10 points in the survey, up from the six points it gained in 2018. The pension fund’s chief executive Torsten Fels said his pension fund was pleased to get this recognition, having worked systematically over the last year to incorporate climate change and climate risk into its investments.“This applies in relation to more green investments, measuring the carbon footprint of our investments, influencing companies to go in a more climate-friendly direction and divesting companies in the areas of oil, coal and tar sands,” Fels said.PFAPFA, the largest of Denmark’s commercial pension funds, saw its score rise to nine this year from seven, and Andreas Stang, head of ESG at PFA, also said he found it positive to see the cross-sector development.“At PFA for the past year we have focused on our systematic approach of integrating the Paris Agreement into our investment process and have conducted screenings to ensure alignment with the accord,” he said.As part of industry association Insurance and Pension Denmark, Stang said the pension fund had attended UN climate week and been part of the industry commitment to invest in a green transition between now and 2030.PensionDanmark Torben Möger Pedersen, PensionDanmark CEOMeanwhile, Torben Möger Pedersen, chief executive of PensionDanmark, whose WWF climate score rose to nine this year from five in 2018, told IPE his pension fund was “very pleased with the recognition by WWF, which reflects the fact that we have worked intensively on developing our portfolio for many years so that it supports the climate agenda.”PensionDanmark is one of the founding members of an alliance of asset owners that recently announced a commitment to making their portfolios carbon neutral by 2050. Industriens PensionAt Industriens Pension, whose score similarly climbed to nine from five, ESG manager Christina Gordon Christiansen said the climate issue had also gradually moved higher up the pension fund’s agenda, and it was pleased that the report recognised its work in this area.“At the same time, we expect that climate and environmental considerations will play an even more significant role in investments in the coming years,” she said.ATPDenmark’s biggest pension fund, the labour-market supplementary fund ATP, saw its score increase to seven from six.Ole Buhl, head of ESG at ATP, said the fund appreciated the efforts of WWF and other NGOs in pushing the green agenda as well as challenging Danish pensions funds.“It is not only that ATP can have an impact on climate change through our investments, but also that climate change can impact ATP’s long-term returns,” he said.For this reason, the pension fund was working seriously on integrating climate change into its investment processes and continuously improving its understanding of how climate change affected its investments, said Buhl.SampensionSeparately, a spokesman for Sampension, whose score rose to six from five, told IPE the pension fund shared the belief that more needed to be done to prevent negative effects due to climate change. “The purpose is both mitigating risks and protecting the assets of our pension savers as well as contributing to turn the tide of climate change,” he said.“We already have further initiatives underway and expect to change responsible investment policies later this year which will lead to further engagements, exclusions and possible divestments,” he said, adding that this should also have an significant impact on the pension fund’s score in next year’s analysis by the WWF.last_img read more

Trade union negotiator argues for calm after discount rate debate heats up

first_img“Restore calm now by saying: whatever we do, we will not be cutting the pensions next year,” he said. “It will also give pension funds the opportunity not to double the premiums. If you don’t do this, you’ll get the debate about the discount rate on the table.” The chief pensions negotiator of Netherlands’ largest trade union has called for calm after a week of heated debates on the discount rate and gloomy reports about pension schemes’ funding ratios.In an interview with Dutch financial publication FD, Tuur Elzinga said the steering group dealing with the particulars of the pension deal should examine the discount rate. “We are busy reviewing all the rules to be applied to the new pension contract – in a speedy fashion, though it will take time,” he said. “In the meantime let’s not not aggravate the situation by having pension cuts become a sword of Damocles hanging over our heads.”FNV has previously called for benefit cuts to be postponed while the details of the new pension system are being fleshed out, and Elzinga reiterated this recommendation in the context of his call for respite. Tuur Elzinga, FNVThe FNV director described pension funds as “up to their necks in it” and the cuts as “just the tip of the iceberg”.According to the current coverage ratio levels, millions of pensions will have to be lowered next year and there is also the risk of substantial premium increases.De Nederlandsche Bank (DNB), the pension fund regulator in the Netherlands, this week said there are 12.1 million members in pension funds whose policy funding ratio – the average of funding ratios for the past 12 months – is below the statutory minimum of 104.2%, representing 63% of all members and 70 pension funds.The policy funding ratios of 56 pension funds are above 104.2% but below the 110% threshold required for full or partial indexation. The country’s pension funds’ current funding ratio, meanwhile, fell three percentage points, to 98.1% at the end of the third quarter, DNB confirmed. Both the funding ratio and the policy funding ratio as at the end of the year inform a pension fund’s decision about benefit cuts based on the amount of its minimum required own funds.Discount rate discussion flares up Elzinga’s comments come after the debate about the discount rate for pension funds flared up. Earlier this month dozens of economists and prominent figures wrote an open letter to the lower house of parliament arguing in favour of a higher discount rate, with pension professors countering their view in a reply. According to Elzinga, the debate belongs to the steering group – a group consisting of representatives from unions, employers and the government that is responsible for the further elaboration of the pension deal.In his view, there are more obvious solutions to prevent short-term pension reductions other than an increase in the discount rate. He said social affairs minister Wouter Koolmees could for example call on a provision in the Pensions Act allowing a postponement of pension cuts in exceptional economic circumstances. Elzinga deems a negative interest rate an example of such circumstances.“We are also caught in special circumstances in terms of policy, as we’ve just concluded an agreement,” he said. “This should lead to a new contract with different rules within two years. Our roadmap is very ambitious, in that we should have the contours ready by next spring. This will clarify everything.“To simply cut pension rights and pay-outs within such an organised period – while pension funds are also receiving more premiums than they are having to pay out – only complicates matters. It’s like playing with fire.”last_img read more

Varma, Ilmarinen see solvency capital shrink but stay above limits

first_imgThe two mainstays of Finland’s earnings-related pension system – Ilmarinen and Varma – have expressed satisfaction with solvency levels in first quarter results although more than a quarter or more of their solvency capital was wiped out against the backdrop of the coronavirus pandemic.Helsinki-based Varma’s investments fell 10.0% in the three-month period after share prices shrank in March amid the COVID-19 shock, the pension insurance company reported.In its interim results statement, CIO Reima Rytsölä said: “The equity market plunged in March at an unheard-of rate, and there were moments when liquidity disappeared almost entirely from the capital markets.”Meanwhile Ilmarinen – the other of the two main providers in Finland’s partially-funded earnings-related pension system – reported a 7.5% loss on investments in the period. Jouko Pölönen, Ilmarinen’s president and chief executive, said: “With the coronavirus crisis, stock prices took a sharp plunge on all markets, which pushed the return on equity investments down to -12.8%.“The return on fixed income investments also was clearly negative, at -6.9%, due to the widening of credit risk margins,” he said. Jouko Pölönen, Ilmarinen president and chief executiveVarma’s solvency capital diminished by more than 30% to €7.9bn at the end of March from €11.6bn on 1 January, and was 1.6 times the solvency limit, the firm reported.Chief executive Risto Murto said: “Despite the economy coming to a grinding halt, Varma’s solvency remained at a good level.”This showed the risk buffers used to secure the pension system were working as they were supposed to, he said.Ilmarinen’s solvency capital shrank by around 25% to €8.1bn at the end of March from €10.8bn at the end of 2019.But Pölönen said that at 120.7%, his firm’s solvency ratio was still clearly higher than regulatory requirements.Solvency buffers built up through long-term funding and investing protected pension assets during market volatility, he said.However, he said, “when it comes to the whole pension system […] it is important to ensure that the sudden slump in the stock market does not lead to a situation where pension companies would be forced to sell their equity investments at low prices to reduce risk.”The market value of Varma’s investments slipped to €43.6bn at the end of the quarter from €48.7bn at the beginning of this year, according to the interim results.Among asset classes, listed equities ended the quarter with a 21.1% loss, though Varma’s equity investments overall registered a loss of 14.6%, the firm reported.Fixed income fell 3.6% and real estate returned 1.3%. Hedge fund investments, meanwhile, left Varma with a 12.7% loss at the end of the three-month period, it said.By reducing equity weights in the overall portfolio, Rytsölä said the pensions insurer had lowered its risk level to secure solvency in the “extraordinary conditions” during the quarter.“The equity market has clearly recovered since the end of March. Time will tell, however, whether the equity market will experience a second wave of decline,” he said.“The central banks’ stimulus measures have slowed the expansion of the economic crisis into a financial crisis”Varma chief executive Risto MurtoMurto said that in terms of economic recovery, the main factor would now be how fast restrictions could be lifted.“The central banks’ stimulus measures, in particular, have been rapid and substantial, which has slowed the expansion of the economic crisis into a financial crisis,” said Murto.Ilmarinen’s total investments contracted to €46.4bn at the end of the first quarter from €50.5bn at the start.The firm said the Finnish economy was expected to slide into a deep recession, as a result of which unemployment was seen rising and the payroll and premiums written were expected to decline substantially.Pölönen said: “The impacts of the crisis will be felt in the pension system in the form of lower investment returns and premiums written due to falling employment rates and the flexibility granted for the payment of earnings-related pension contributions.”last_img read more

Survey: Active, smart beta ETFs to see uptick in next three years

first_imgIt also noted that cost efficiency, ease of trading and liquidity, diversification and risk management were the most important benefits of ETFs.Beyond this, participants increasingly viewed active ETFs as a tool to add alpha, or as a means to achieve specific investment objectives, like sustainable investing. Nearly half (40%) of all client money allocated to exchange-traded funds (ETFs) will be in active or smart beta strategies by 2023, according to the respondents* of JP Morgan Asset Management’s (JPMAM) Second Annual Global ETF Survey.Survey participants, already regular users of active and smart beta ETFs, believe their clients’ ETF allocations held in passive products will decline to 61% of portfolios over the next three years, while the share of assets in active and smart beta ETFs will continue to grow substantially.The Global ETF Study 2020 took place in April 2020, with 320 survey respondents in the US, EMEA, Asia Pacific and Latin America taking part. While US-based respondents expect active ETFs to rapidly gain an edge in the next few years, making up more than a quarter of ETF allocations by 2023, APAC based respondents predict smart beta products will grow significantly faster in that region, the survey showed. Source: JP Morgan Asset ManagementJed Laskowitz, global head of asset management solutions at JPMAM, said: “We’re seeing a significant shift in sentiment and in the way investors use ETFs in portfolios. They are exploring their options and increasingly looking to diversify their use of ETFs beyond passive strategies.“For example, the current and expected growth in ESG ETFs and active ETFs is proof that these vehicles are likely to play a bigger role across investor portfolios.”ESG demand drives ETF growthEnvironmental, social, and corporate governance (ESG) and thematic ETFs are seen as key growth drivers in the near future, the study revealed. Globally, more than half (59%) of respondents predicted strong growth in ESG ETFs by 2023, while 42% believe thematic ETFs will similarly grow over the same period.As ESG gains familiarity across the industry, many investors want to use ESG ETFs to help align their investments with their values and beliefs, according to respondents. ESG ETFs are earmarked for significant expansion by around seven in 10 respondents in EMEA (72%), Asia Pacific (70%) and Latin America (68%).Survey prticipants highlighted several factors were driving client appetite: rising concern over climate change; a growing perception that taking ESG criteria into account can enhance risk management and improve risk-adjusted returns; there was also a preference for a more values-based approach to investment from younger investors.ESG interest may also fuel the future growth of active ETFs, as these structures are well suited for such investment strategies, the study concluded. Furthermore, in this year’s IPE ETF Guide, IPE Magazine’s 8th annual report on the global ETF market for institutional investors, JPMAM highlights the advantages that active ETFs can bring to a portfolio and takes a closer look at how its Research-Enhanced Index (REI) strategy can provided investors with the “best of both worlds”.The guide, which includes JPMAM’s contribution, will be distributed with the October issue of IPE Magazine.*Survey respondents included independent wealth and asset managers, discretionary fund managers, independent advisory and brokerage firms, private banks, fund-of-funds, insurance companies and investment platforms for defined contribution plans. To download a summary of the survey results, click here.To read the digital edition of IPE’s latest magazine click here.last_img read more

Kingsholme home and a half sells for $815,000

first_imgOne of the modern bathrooms.The agent said Kingsholme was a tightly held suburb, with properties rarely coming up for sale.“Properties are pretty much passed down through families and they don’t come on very often.”She said it was a hard to price the suburb because it was varying in block size and architecture.Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 10:02Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -10:02 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD432p432p270p270p180p180pAutoA, 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 Rate1xFullscreenJune, 2018: Liz Tilley talks prestige property10:02 Inside the kitchen of the completed home.Ms Frinke said the sellers had built before, but unfortunately had been unable to complete the home after falling ill.She said the new owners were a family who would finish building the property, and had already moved into the existing home. The property at 62-76 Stage Coach Drive, Kingsholme sold for $815,000.A KINGSHOLME property with one and a half homes has been sold for $815,000.center_img Outside the completed home at 62-76 Stage Coach Drive.LJ Hooker Ormeau sales consultant Deb Frinke said they had received “hundreds” of enquiries about the 62-76 Stage Coach Drive property, which had one completed and one half-built home on it.“(The vendors) were living in one house, and building another home and got as far as putting the roof on,” Ms Frinke said.More from newsDigital inspection tool proves a property boon for REA website3 Apr 2020The Camira homestead where kids roamed free28 May 2019“A lot of the stuff that was required to finish the home is on site and everybody who inspected it agreed it was a very good floorplan.”last_img read more