ABP boosts US holdings to improve liquidity and diversification

first_imgABP has increased its investments in North America by three percentage points to 38% after changing its benchmark for government bonds.The change involved a move from 100% euro-denominated bonds to a 50-50 split of euro-denominated and worldwide government paper.In its annual report for 2016, the €387bn civil service scheme said the allocation adjustment – at the expense of investments in Europe – was meant to improve both liquidity and diversification.The pension fund reduced its overall holdings in Europe by five percentage points to 22%, while raising its allocation to Asia Pacific assets by one percentage point to 12%. Last year, it brought its investment mix in line with its investment plan for 2016-2018, comprising 60% securities and 40% fixed income, combined with a 25% hedge of the interest rate risk on its liabilities.Other asset allocation changes saw the pension fund raise its allocation to developed market equities by 1 percentage point to 25%, at the expense of its stake in government bonds.ABP increased its portfolio of emerging market debt by 1 percentage point to 3%, citing “attractive long-term perspectives” as well as the fund’s minimum allocation of 3% to each asset class.Also to increase portfolio diversification, ABP said it had started investing in worldwide inflation-linked bonds, combined with a full currency hedge.The civil service scheme further indicated that it was keen to increase its local investments – currently 15% – in particular in projects for energy transition and those aimed at improving the sustainability of residential property and schools.Last year, it raised its commitment for financing startups from €200m to €500m, and committed €180m to the acquisition of 1,700 units of rental property in the mid-market segment.The pension fund also said risk management needed to be improved and that fiduciary services would be provided by an independent branch of its asset manager APG. Both adjustments must lead to increased oversight of investment decisions, the pension fund said.ABP, which generated a 9.5% result over the course of 2016, said it had reduced its asset management costs to 61 basis points last year.Despite private equity and hedge funds – which made up 10% of the portfolio – incurring 36bps of costs, the scheme’s board reiterated that the expenses were justified, citing the asset classes’ contribution to diversification and their returns of 14.8% and 7.9% respectively.It pointed out that its active investment policy had delivered €2.1bn of additional returns in 2016.To further drive down costs, APG has extended its private equity team and made more direct investments.ABP added that its asset manager had made almost 80% of last year’s commitments to private equity without a third-party manager, which would deliver “drastic costs reductions for the long term”.Administration costs dropped to €79 per participant, thanks to a rise in the number of participants as well as a reorganisation at APG.The civil service scheme also said it would work with employers and unions to simplify its pension offering. ABP said that its pension arrangements were becoming too complicated and almost impossible to explain to participants following many adjustments, largely as a result of new legislation.last_img read more

Bruins back in recovery mode

first_img AD Quality Auto 360p 720p 1080p Top articles1/5READ MOREStriving toward a more perfect me: Doug McIntyre UCLA responded with a 44-31 defeat of Washington. The 14-point Notre Dame debacle? The Bruins upset then-No. 10 California, 30-21, in their next game. So, on the heels of the 20-point Palouse fiasco last week? UCLA, the country’s most famous roller coaster this side of Coney Island’s Cyclone, gives its answer today when it visits Arizona. COLLEGE FOOTBALL: UCLA has responded well after defeats in 2007. By Brian Dohn Staff Writer TUCSON, Ariz. – The 38-point Utah embarrassment? “I told some of the guys, let’s be real with each other. We are an inconsistent football team,” UCLA senior middle linebacker Christian Taylor said. “If somebody calls us that, I’m not going to cuss them out. There’s truth in that. The first step to healing is admittance, so I’m admitting it. We’re inconsistent.” It’s the second step that can be a doozy for UCLA. UCLA’s problem isn’t admittance, it’s adhering to its much-chirped-about “1-0 every week” mantra, which is why Athletic Director Dan Guerrero turned up the heat on fifth-year coach Karl Dorrell early in the week by saying, “I will be very interested to see how we finish the season this year.” The Bruins are 5-3 overall, with losses to a couple of the not-so-good teams in the nation. Utah, Notre Dame and Washington State are a combined 7-15 against schools not located in Westwood. But the Bruins also are 4-1 and in second place in the Pacific-10 Conference. Games with No. 6 Arizona State, No. 4 Oregon and USC follow this foray in the desert, where the Bruins were beaten by 38 points two years ago. Taylor, as well as many of his teammates, say they have no idea why the inconsistency that has been a part of the last few seasons has turned into a full-blown epidemic, especially since it is a veteran team. “I’m going to try and figure out a solution, and the only thing I know we can do is what I’ve been taught, and what I’ve learned,” Taylor said. “You just got to work, and if it’s not working, you work harder. You put your head down and keeping working.” Much of UCLA’s problems are traced to an ineffective offense, which has been hit hard by injuries and victimized by erratic play, including dropped passes, missed blocks, poor passes, poor quarterback play and turnovers. UCLA’s turnover margin (minus-4) is tied for second-worst in the Pac-10. Quarterback Ben Olson, tailback Kahlil Bell, fullback Michael Pitre and receiver Marcus Everett (all starters) will not play today because of injury. Continuity on the offensive line is another issue. With Aleksey Lanis scheduled to start at left tackle, UCLA will have its sixth combination of starters on the offensive line in nine games, despite having only left guard Shannon Tevaga miss a start because of injury. “As an offense, we’ve just been looking at the film and watching all the missed opportunities we have had,” UCLA receiver Terrence Austin said. “You don’t really see all the missed opportunities we had when the game is played, but when you come back and watch (the film), it definitely is something you see.” Were the mistakes different in any of the losses? “No,” Austin said. “Same exact stuff.” UCLA right tackle Brian Abraham said he believes the solution to playing better is to execute better in practice. “You do it bad in practice, over and over again without fixing it, it’s going to be bad in the game,” Abraham said. “We have to come out (in practice) and if something’s wrong, we have to fix it (in practice) and get it done before the game.” Prior to the losses to Utah and Washington State, effort and/or focus in practice were issues. While players said the intensity of practice was high this week, Dorrell held back on what that would mean. “We’ll see Saturday,” Dorrell said. brian.dohn@dailynews.com160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set!last_img read more