BpfBouw increases dollar hedge following currency loss

first_imgBpfBouw said it had stuck with its 45% interest rate hedge for its liabilities, which delivered a 1.1% gain last year as interest rates fell.The industry-wide scheme reported a net result of 0.3% for its overall investment portfolio, largely due to the performance of its 18% allocation to property, which returned 12.5%.BpfBouw’s real estate holdings are managed by Bouwinvest, its wholly owned property investor, while its remaining assets are managed by APG Asset Management.Returns breakdown BpfBouw’s property allocation gained 12.5% in 2018In contrast to the property gains, the scheme posted an overall loss of 5.6% on equity, with developed and emerging markets losing 3.5% and 12.5%, respectively.Developed market equity underperformance was chiefly driven by the pension fund’s quantitative investment strategy, BpfBouw said, following disappointing results from small and mid caps.BpfBouw’s fixed income portfolio gained 0.9%, with credit gaining 2%. However, its emerging market debt exposure lost 1.9%, while inflation-linked bonds declined by 2.3%.The pension fund said it had increased the number of green bonds in its portfolio by 39 to 141 – totalling €874m – last year.Its infrastructure holdings in non-listed projects was the best performing asset class, returning 17.3% – although this only made up 0.3% of the scheme’s overall portfolio.Private equity and hedge funds delivered 16.1% and 7.2%, respectively, while commodities lost 9.6% due to falling oil prices.The construction scheme said that it had slightly adjusted its strategic allocation following an asset-liability management study, increasing its index-linked bonds allocation by 1 percentage point to 4.5%, and reducing its credit holdings to 18.5%.Referring to ongoing discussions on Dutch pension reform, BpfBouw’s board said it still opposed the idea of individual pensions accrual as it preferred a pensions contract focusing on solidarity through a collective approach.The sector scheme reported an administration cost per member of €97 and said it had spent 57bps and 13bps on asset management and transactions, respectively.Based on a funding level of 118.3% at the end of the year, it granted members a 1% inflation uplift on 1 January 2019. However, indexation in arrears stood at 8.8% for active participants and more than 9% for deferred members and pensioners.BpfBouw covers 783,000 workers and pensioners affiliated with more than 12,800 employers. The Dutch pension fund for construction workers has raised its hedge of the US dollar following a 2.1% loss on its currency hedge in 2018.In its annual report for 2018, BpfBouw said it had increased the dollar cover from 61% to 72%, in the wake of the currency unexpectedly appreciating relative to the euro.The €61bn sector pension fund said it had kept an 80% hedged position on other strategic currencies, adding that it had fully hedged the currency risk on its hedge funds allocation but had not hedged its commodities exposure.Earlier this week, the €18.5bn Dutch pension fund of electronics giant Philips reported a 2.4% loss for 2018 due to its full hedge of the currency risk relating to the dollar and the yen.last_img read more

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Ambode to Give Ajegunle’s Maracana Stadium Status

first_imgKeno EdhowoThe popular Maracana football ground in Ajegunle where hundreds of top Nigerian footballers began their careers is about to get a facelift.The likes of Odion Ighalo, Samson Siasia, Obafemi Martins, Taribo West and several others played at the famous football ground in Ajegunle part of Lagos. Lagos State Governor, Akinwunmi Ambode has promised that early next year, Maracana and three others at at Igbogbo, Epe and Badagry have been listed to be upgraded as part of his drive to make sporting infrastructures available for citizens in the state to freely give their careers wings.Newly appointed Director General of the Lagos State Sports Commission, Mr. Gbolahan Adewunmi Ogunsanya, gave this hint when the executive committee of the Lagos State Sports Writers Sssociation (SWAN) paid a courtesy call on him at the weekend.He said that the plan is a product of a detailed study of the state sports environment.“As part of the plan, the government would, by next year construct standard stadiums in five districts of the state including the Maracana Stadium in Ajegunle and others at Igbogbo, Epe and Badagry.While calling for the support of the citizenry and partnership of the organised private sector towards achieving a more robust sport environment in Lagos, Mr. Ogunsanya expressed optimism that, in pursuit of the agenda, the massive performance being recorded by the state in various other sectors like roads, lighting, transportation, tourism and business infrastructure will also be brought to bear in sports.“The governor is very much aware of the importance of sports in society and is very serious about sports development. He has a clear vision with documented roadmap to direct the process.“The plan also includes providing sports parks and recreational facilities in various neighbourhoods to revive grassroots, community and schools sports. This includes the construction of mini sports centres, indoor gyms or sports triangles, where space permits, in about 300 secondary schools across the state as legacy projects. This is expected to energise schools and after-schools sports as well as serve the communities.”“The issue of availability of land tends to constrain the provision of sports centres in various communities but we will continue to develop ideas. It is important too that the private sector and community leaders join hands with the government for us to collectively pursue and achieve these goals for the benefit of all.”To support the process, he revealed that Governor Ambode has made moves to revive the Lagos State Sports Trust Fund which had been inoperative for a couple of decades now. The bill for the revival has been submitted to the Lagos State House of Assembly where it has undergone second reading and would be a subject of pubic hearing possibly this September.Share this:FacebookRedditTwitterPrintPinterestEmailWhatsAppSkypeLinkedInTumblrPocketTelegramlast_img read more

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