Month: September 2020

Month: September 2020

first_imgThe Danish krone is unlikely to become decoupled from the euro in the way the Swiss franc recently parted company from the pan-European currency despite today’s expected decision by the European Central Bank (ECB) to initiate a wide-scale quantitative easing (QE) programme, according to Danish pension funds.However, one suggested the Danish currency may end up fluctuating more widely against the euro than is now the case.Michael Kjærbye-Thygesen, senior portfolio manager of fixed income at Sampension, said he believed the Danish krone’s euro peg would hold.“It has been in place since 1982, and the Danish central bank will do all in its power to maintain the peg,” he said. This would mean interventions and possibly further interest rate cuts, he said, adding that Danish rates were still attractive compared with core euro rates.Kjærbye-Thygesen said he believed the market was now pricing in purchases by ECB of government bonds of the order of €500bln, as the central bank aimed to bring its balance sheet up by around €1trn.“We expect the ECB to meet expectations with an announcement of €500bn balance sheet expansion from the purchases but will keep the door open for further purchases, should that be required,” he told IPE.Sampension holds a large part of its bond portfolio in euro government bonds, as well as Danish government bonds, Kjærbye-Thygesen said, adding that the pension fund expected these holdings to benefit from today’s announcement. “We are not moving bond risk to the US, as there is a clear decoupling between the euro area and the US, both on the macro economy and the reaction of central banks,” he said.Sampension takes the view that the US Fed will hike rates around the middle of this year.Similarly, pensions provider SEB Pension sees no chance at all that the Danish currency will become uncoupled from the euro.Jorn Styczen, CIO at SEB Pension in Denmark, said: “There is zero probability that Denmark is going to break the link with the euro.”He said he thought there was general misunderstanding on the Danish krone and the position of the Danish central bank (Danmarks Nationalbank). “The situation of the Danish central bank does not resemble the Swiss National Bank (SNB) at all,” Styczen said, referring to the SNB’s decision earlier this month to cut the peg between the Swiss franc and the euro.While the SNB’s peg to the euro was a relatively recent policy action, Styczen said the Danish krone had been pegged to the euro for many years. “It is the regime Danish investors are working with,” he said. “The euro is incorporated in all the legislation we have.”If the Danish krone were to go the way of the Swiss franc, it would be a major change to the structure of the Danish economy, he said.“Based on this, we are not changing our euro-hedging strategy,” he said.SEB Pension’s assets had been positioned in anticipation of euro-wide QE for some time, he said, with the overall portfolio overweight in equities, long in US-dollar holdings and long in bonds.“In general, we have been positioned for the ECB to act for many months,” Styczen said.Elsewhere, Lars Lyhne, head of asset allocation at labour-market scheme PenSam, pointed out that, technically at least, there was a lot of flexibility in the Danish krone’s link to the euro.“We tend to forget the krone is allowed to move 15% without leaving the peg,” he said.“It was conceived in the days of the ERM (exchange-rate mechanism), where currency movements were more common at this level,” he said.That said, the Danish central bank would be defending the plus or minus 2.25% band against the euro, he said.“There is a lot of political will to maintain this peg, and the Danish perspective is very different from the Swiss one,” Lyhne said.If the Danish krone were to fluctuate more widely against the euro, Lyhne said PenSam’s investments would suffer no direct impact because they were currency hedged.“But there would be an indirect impact, as a 15% swing would hurt the Danish equity market, so there would be second-round effects on us,” he said.“We are overweight equities compared with our benchmark, and one of the reasons for that is our expectations of more expansionary monetary policy.”Separately, KLP Kapitalforvaltning, the asset management arm of Norwegian public sector pension fund KLP, said it was making no special preparations for the possible consequences of QE.Lars Mouland, portfolio manager at the division, said the fund believed market expectations of an ECB announcement would be met.“We expect some volatility in the next couple of days, but then things will continue,” he said.“The ECB will buy enough to meet the €3trn balance sheet within a couple of years.”He predicted national central banks would buy the majority of that amount.last_img read more


Month: September 2020

first_imgThe Norwegian government is to be more cautious in drawing down the Government Pension Fund Global (GPFG) over concerns the sovereign wealth fund’s size will be hit by market uncertainty.The Ministry of Finance said the addition to the fiscal rule – which stipulates that transfers from the fund be in line with its expected 4% return target – were necessary so that governments knew how to apply it when the value of the fund fluctuated widely in value.The commission, chaired by Øystein Thøgersen of the Norwegian School of Economics (NHH), found that drawdowns from the fund were “well below” the expected real return for the GPFG due to strong growth over the past few years.Two new rules are being proposed – one governing limited fund withdrawal and one for the gradual phasing in of further expenditure. The latter, the commission argued, will still allow drawdowns to rise by up to NOK8bn (€917m) a year in normal economic times.At the end of 2014, the GPFG’s assets stood at NOK6.4trn, an increase of NOK1.4trn over the course of the year, and it has since seen assets approach NOK6.9trn.The committee argued that a more gradual increase in spending of the sovereign fund’s assets was required, as a “swift” increase in spending could lead to fiscal tightening long before the country is affected by the cost of an ageing population.It also argued that a different approach was needed because the fund was facing a lower real return over the next 10-15 years.“A more gradual increase in spending is better suited to uncertainty, population ageing and declining activity on the continental shelf,” it said.“Given the current outlook, the spending of oil revenues will then be well below the 4% path for many years to come.”According to the Norwegian government’s most recent budget, it was able to cover one in nine kroner spent through the GPFG, while only drawing down 3%.last_img read more


Month: September 2020

first_img“The other thing countries with high MMGPI scores do is to facilitate high levels of participation in Pillar 2 pension plans, and to create cost-effective, fiduciary oriented Pillar 2 pension intermediaries,” Ambachtsheer added.“The combination of these two features ensures broad Pillar 2 coverage, creates measurable ‘value-for-money’ for participants, and eliminates the need for high cost Pillar 3 ‘solutions’. “The most recent MMGPI saw Denmark, the Netherlands and Australia returned to the top three slots. All three companies offer either a predictable means-tested state pension, a high contributory retirement benefit, or a combination of both.Ambachtsheer then went on to criticise the colourful language employed by El-Erian, who likened pension systems across the world to the Titanic, believed unable to sink on the eve of its ill-fated maiden voyage.“Far from being Titanics,” Ambachtsheer said, “these cost-effective, fiduciary oriented Pillar 2 pension organizations are a critical ingredient of sustainable 21st Century capitalism.” Workers should not be incentivised to save into expensive third-pillar pension systems, according to Keith Ambachtsheer, who criticised a number of reform proposals put forward by former PIMCO co-CIO Mohamed El-Erian.Ambachtsheer argued it was harder to think of a “worse” policy initiative than to improve pension savings rates by nudging savers into such third-pillar options, and added the fees associated with such options could cost savers significant sums over several decades.Responding to an opinion piece by El-Erian, who remains chief economic advisor at Allianz following his departure from PIMCO, the academic also said that it was often the wealthy who believed it benefitted less affluent workers to save into third-pillar arrangements.However, in a policy paper he argued countries with high pension sustainability ratings – such as those granted under the Melbourne Mercer Global Pension Index (MMGPI) – offered means-tested state pension arrangements, thereby removing the incentive for such third pillar savings.last_img read more


Month: September 2020

first_imgSweden’s seventh national pension fund AP7 has put six energy companies on a watch for potential exclusion from its portfolio on climate change grounds, a spokesman confirmed to IPE.The six companies are American Energy, Exxon Mobil, Gazprom, Southern Company, Transcanada and Westar Energy.AP7’s holdings in these companies amount to around €300m, according to the spokesman.The backdrop to the move is the international agreement on climate change reached at the UN Conference of Parties (COP21) in Paris last year, which the spokesman said was “a game-changer” and would have consequences for several years ahead. “With our norms-based approach, we thought this is exactly the kind of international, UN-type of agreement we work with,” he said. The fund decided to screen its global equity portfolio, which comprises holdings in more than 2,500 companies, to try to define the worst performers in terms of their contribution to achieving the global-warming mitigation goal set out in the Paris Agreement on climate change.The screening exercise was carried out this month.The six aforementioned companies are the first ones the buffer fund identified that could be said to “work actively” against the Paris Agreement, according to the spokesman.AP7 has notified the companies that it could blacklist them if the fund does not obtain information “that could contradict our impression”, he said.The companies will have six months to get back to the pension fund, after which it will make a decision.Asked for further information about the screening process, the spokesman said it considered whether certain aspects of a company’s business were aligned with the maximum 2-degree warming target in the Paris Agreement, or whether companies could be seen as actively obstructing or inhibiting the implementation of the agreement at national level – via lobbying, for example.AP7 started blacklisting companies on the grounds of norms violations – for human rights, labour and/or environmental reasons, or corruption – around 16 years ago, and, as at the end of June 2016, 55 companies were on its list, according to the spokesman. Sweden’s second national pensions buffer fund, AP2, recently said it divested 10 more of the stocks it holds on the grounds of financial climate risk.last_img read more


Month: September 2020

first_imgDanish pensions and insurance lobby group Insurance and Pensions Denmark (IPD) has taken issue with the way ATP backed up its assertion yesterday that in Denmark, pension “free riders” ended up with more disposal income over a lifetime.The industry group said in a statement that the pension fund “had a point” with its calculation examples of how pension offsetting worked in practice, but it said failing to save up for a pension at all was not an advantage.IPD gave several reasons why the DKK918bn (€123bn) statutory pension fund’s calculations were not representative, saying that among other things, its main example assumed a very low-risk investment profile for the model pension saver.Jan Hansen, IPD’s deputy director said: “ATP has chosen a very conservative investment strategy: 3/4 bonds and 1/4 shares throughout the savings and disbursement process.” A typical medium-risk profile from a Danish pension firm for a young saver began with 3/4 shares, he said, a proportion which was then gradually reduced to 1/3 by retirement, adding that this was significant since equities were expected to produce higher returns than bonds.Hansen said ATP had also picked a person who had been in the labour market for 50 years as its example, whereas the government’s recent unveiling of its early retirement proposal had shown that only around 40-50,000 people had worked for over 41 years.“Very few are in the labour market for 50 years. And virtually none of them have saved so little up for retirement that they qualify for a full seniors’ cheque [a lump sum for Danes who have little or no income in addition to the state pension],” he said.Given a more realistic investment profile with an increased equity weighting, IPD said ATP’s “negative picture” would be transformed into a small profit of just over DKK80,000.It also said the two people in ATP’s examples would end up with markedly different outcomes in terms of pension coverage, with the “free-rider” receiving around 60% of salary coverage, and the pension saver receiving nearly 100% of their salary.Like ATP, IPD also concluded its statement with suggestions about the remit of the newly-established Pension Commission.Hansen argued that the commission needed to examine whether the incentive to save up for retirement was good enough – both over the entire savings process and in the years before the state pension age.“A few years ago, politicians took big steps in the right direction by introducing old-age savings [aldersopsparing] and extra pension deductions. But we are not quite there,” he said.Looking for IPE’s latest magazine? Read the digital edition here.last_img read more


Month: September 2020

first_imgMore from newsNew apartments released at idyllic retirement community Samford Grove Presented by Parks and wildlife the new lust-haves post coronavirus18 hours agoAveo CEO Geoff Grady said the revitalisation and extension of the development, which was originally built in 2009, met the growing demand of Brisbane’s ageing population.“Our Tanah Merah community already delivers superb on-site amenities so we’re particularly excited to bring further amenities for our residents to enjoy today and in the years to come,” he said.“We’ve invested so much thought into each aspect of the upgrade – from a ‘memory node’ space dedicated to helping those with cognitive concerns to the sensory garden, which has been designed to stimulate all five senses for people living with dementia.“Ensuring our residents have access to the best possible care remains our highest priority.” A SENSORY garden is among several new features included in Aveo’s Freedom Aged Care Tanah Merah $21 million upgrade.A sensory garden is among several new features included in Aveo’s Freedom Aged Care Tanah Merah $21 million upgrade, which is nearing completion. With palliative care available on-site, the Freedom community matches a residential aged care facility in services while providing residents the freedom of independent living.The Tanah Merah community spans 2.3ha and provides a full range of care and support services such as diversional therapists, highly qualified health professionals and 24-hour personal care and nursing staff, working around the clock to ensure residents receive the necessary support required.Construction at Tanah Merah in Brisbane’s south will be finalised mid-June and it will feature 62 new private aged care units and new community amenities and services including a media room, hairdressing salon, gym, consulting rooms, memory support unit and sensory garden.Existing facilities at Tanah Merah include a community centre, dining room, swimming pool, library, putting green, vegetable gardens, barbecue zones and medical suites together with allied health services.last_img read more


Month: September 2020

first_img <<>> Come inside and explore the renovated 33 Knights Tce, Margate.IT’S not a waterfront property but 33 Knights Tce, Margate is bound to the bay.The turquoise waters are captured in the colour of the front door, and the sea breezes are busy cooling every room. SEE WHAT ELSE IS FOR SALE IN MARGATE THIS WEEK The long lines of the kitchen and dining area with views to the front deck.Dustin and Tammie Dever bought the house five years ago and have renovated it to preserve the charm and add a modern touch.It’s a very deceptive house, it keeps going and going,” Mr Dever said. A full renovation has transformed the inside of this 1960s cottage.It is also more than meets the eye, and what at first looks like a quaint 1960s cottage, is actually a cleverly renovated four bedroom house with 119sq m of internal floor space. And with the doors open, those bay breezes sweep right through the house.The new kitchen and bathrooms have revamped the inside while modern decking and a built-in barbecue area have extended the living area to outdoors. Light and airy bedrooms with clever storage space.“It’s an entertainer’s delight,’’ he said.“Private and quiet and sheltered from the heat in summer because of the trees that surround it.”center_img The back shed can be a studio, man cave, or games room. Whatever takes your fancy.“We love it here,” he said.“We didn’t necessarily want to be next to the water, but up on the hill is good, we have bikes and ride down to Scarborough and the lagoon at Redcliffe. Plenty of room to relax and enjoy Moreton Bay breezes.More from newsLand grab sees 12 Sandstone Lakes homesites sell in a week21 Jun 2020Tropical haven walking distance from the surf9 Oct 2019“We’ve put our heart and soul into restoring it.“We loved that the house was on the top of the hill and has a beautiful breeze because of the way it faces, and we loved its charm.” Behind the house a large shed has been converted into a studio. “It’s accessible for anyone with an active lifestyle and we didn’t need to spend twice as much to be close to the water.”The lowset layout on a 405sq m block has been ideal for the Devers’ young family who have enjoyed the outdoors without feeling separated from the house.Ray White Woody Point is opening the home for inspection this Saturday, November 3, from 10.15-10.45am. Looking toward the rear of the house.The original stained glass windows have been preserved.last_img read more


Month: September 2020

first_img57 Stella St, Holland Park.A Hamptons-style home at Holland Park has hit the market with its luxury design and finish appealing to a wide range of buyers.The home features extensive use of natural stone including Italian marble and Turkish travertine which is set to be a major talking point of the home, according to Priority Residential selling agent Ali Mohamed. The stunning bathroom at 57 Stella St, Holland Park 57 Stella St, Holland Park The swimming pool at 57 Stella St, Holland ParkMr Mohamed said there had been a shift in demand in Holland Park over the past few years with locals and new buyers realising its geographical strength because of its proximity to local cafes, eateries and shops, the Pacific Motorway, the busway and the Brisbane CBD.“Buyers from surrounding suburbs like Camp Hill, Coorparoo, Greenslopes, Tarragindi and Morningside often favour Holland Park because new homes in Holland Park are rivalling if not exceeding the level of luxury and finishes,” he said. All wet areas, including the three bathrooms and laundry, feature Italian marble on the floors, coupled with extensive marble mosaics on the walls. “We’ve also incorporated a very expensive marble-lined barrel ceiling above the bathtub in the ensuite which draws a lot of attention when people enter the ensuite,” he said.Mr Mohamed said there were genuinely very few options for buyers looking for luxury new builds in and around Holland Park on 600sq m blocks or bigger.“The home was developed with an emphasis on home automation and technology. Often new builds feature one or two very selective home automation features but Herringbone has pushed the envelope in this regard for the area,” he said.“Every light in the house is app controlled via a phone or tablet, as well as the electronic front door lock, garage door, security cameras and built in Sonos sound system across the indoor and outdoor living spaces.” The five-bedroom, three-bathroom new build has three living areas and is on a 607sq m block with a 15m frontage. A post-war home was demolished on the site to make way for the stunning home.Mr Mohamed said there were many standout features within the home including an emphasis on the detail in the trims with wainscoting featured throughout the ground floor along with 140mm skirting and 93mm architraves all working together to emphasise the Hamptons style.“There is built-in cabinetry galore,” Mr Mohamed said. “We’ve spent circa $80,000 on cabinetry alone.“All benchtops through the house feature Italian Carrara marble including the kitchen, butler’s pantry, bathroom vanities, living area’s TV units, the alfresco, and even the laundry has marble.”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 Inside 57 Stella St, Holland Parklast_img read more


Month: September 2020

first_img The then new A wing of Townsville General Hospital in 1954, three years after its official opening. Historical Picture: State Library of Queensland “The building has gorgeous lines in it and beautiful curves in the balconies, we really wanted to make sure that was incorporated rather than try and work against it,” Ms Hart said.“We are on the top floor and were one of the first to build in that column, so we were able to make some modifications to the original plans; we’ve got an extra 30cm of ceiling than any of the other apartments because we could go up into the roof.” “All the doors are extra high and there’s internal sliding doors so that we’re not taking up extra floor space.” “Because it’s the penthouse it rises above the tower behind it and it’s the only level that can see right up over the hill, over Queens Gardens, and right up to Palm Island.”“It’s absolutely stunning like seriously the most incredible view — it’s amazing.” The couple also meticulously designed their perfect master-bedroom, which served as an escape from their busy lives as event producers and provided them with ample privacy when they wanted time away from their teenage children. “We really wanted a master-bedroom so that when we closed the door, we were in another world.”“We created a really incredible triple bathroom with a hidden sliding door, and you can lie in the bath and see Magnetic Island.”“There’s a four by four walk in wardrobe with custom built cabinetry, shoe draws, and a makeup cabinet.”RELATED: Contemporary classic with views to cherish With a family kitchen rivalling the set of MasterChef, it features top of the range appliances with an invisible range hood which rises from the stone bench. “We entertained quite a bit so we wanted a kitchen that was really beautiful and functional; we put a hidden butler’s pantry in behind a curved door that opens automatically, and then we did a triple kitchen.”“So we have the butler’s pantry, back wall, middle prep bench with a cook top, and then another space for breakfast eating and more prep on top of a massive dining area.”The Fulton Gardens complex is located in North Ward, and overlooks The Strand, featuring a double pool, gym and two acres of heritage listed gardens. Labor’s policies could deter Townsville investors leaving renters to foot the bill Breathtaking 270 degree views of Castle Hill, Magnetic Island and beyond will never be at risk of being built out, and the balcony spans the width of the apartment.“You’ll never get a building that’s made of that structural quality; with the hallways that big and the space so vast, because it was obviously made as an industrial property,” Ms Hart said.center_img The three-bedroom apartment features a bathroom for every bedroom, and a large living space for family time. It also includes a private office on the ground floor of the complex with connection to NBN, making it perfect for those wanting to work from home or operate a small team of staff.“There’s a fully kitted out office on the ground floor with private entry — so if you work for yourself or if you work from home or have staff that works really well.”“We work for ourselves so it was really-nice to be able to go downstairs to work.” Townsville’s cheapest suburbs More from news01:21Buyer demand explodes in Townsville’s 2019 flood-affected suburbs12 Sep 202001:21‘Giant surge’ in new home sales lifts Townsville property market10 Sep 2020 No expense has been spared in complimenting the original art deco style of 604/53 Gregory Street. Price: $1.69 MillionBRIDGET Hart and Justin Cowell purchased this penthouse as a shell in 2015, and spent the next year and a half developing the plan and fitting it out. The heritage listed apartment was once part of the Townsville General Hospital, and still retains its original architectural features.No expense has been spared in complimenting the original art deco style of 604/53 Gregory Street, and the couple have made extra modifications to ensure this unit is a one-off. MORE REAL ESTATE NEWSlast_img read more


Month: September 2020

first_img“We had interest from interstate buyers and also international buyers,” Ms Wu said. “The design of the basement really attracted the buyer and they loved everything about it.”More from news02:37International architect Desmond Brooks selling luxury beach villa10 hours ago02:37Gold Coast property: Sovereign Islands mega mansion hits market with $16m price tag1 day ago The palatial property sold for $5.5 million. Seven agents tried their hand at selling the home. The property doesn’t skimp on luxury, with an infinity pool … It sold less than a week before it was set to go to auction. MORE NEWS: How furry friends can help sell a home A mega-mansion at 85 The Sovereign Mile, Sovereign Islands, has been snapped up days before auction.A PALATIAL property on the Sovereign Islands has changed hands for an eye-watering $5.5 million just days before it was set to head under the hammer. The opulent six-bedroom, seven bathroom mega-mansion featured a string of luxury inclusions such as an underground entertainment den, vertical garden and pool. … and of course a home cinema.Among the mansion’s standout features was an underground “grotto”, which had a wellness centre incorporating a massage room, bathroom and Sawo Scandia sauna.The self-watering “garden wall” at the front of the house was also an unusual feature. It’s underground den and wellness centre was a big selling point.Amir Mian Prestige Property Agents’ Ivy Wu, who sold the house alongside Isaac Kim, said they had three offers in the lead up to the auction. A local family secured the keys a week prior to the scheduled auction date. MORE NEWS: Mansion snapped up in three days It had six bedrooms and seven bathrooms. It first hit the market in August last year.The property first hit the market in August 2018 with a $6.98 million price tag, according to CoreLogic data. Property records show at least seven agents tried their hand a notching a deal for the house, with the property’s price slashed to $6.2 million before Amir Mian Prestige Property Agents took over the listing at the end of June. “It started with different agencies but we had the right strategy,” Ms Wu said. “We have started seeing a lot of confidence from the buyers in the market at the moment, especially on Sovereign Islands.” The property last sold in 2016 as a vacant block for $1.38 million before the new house was constructed. Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 1:14Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -1:14 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD540p540p360p360p270p270pAutoA, 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 do celebrities organise their pantry? 01:15last_img read more


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