Croatian second-pillar pension funds report strong results

first_imgThe 2015 returns for these were 9.12% and 6.78%, respectively.According to a recent press conference by the Association of Pension Fund Management Companies and Pension Insurance Companies (UMFO), since the start of the pension reform, the second pillar achieved an annual average return of 3.65% in real terms, with models suggesting the system could provide up to 44% of a retired member’s final pension.High returns on sovereign Croatian bonds contributed to 2015’s positive results.These securities account for the biggest share of second-pillar assets, ranging from 48.6% for Category A funds through 71.2% for Category B and 91.7% for Category C.These returns will decline if Croatia maintains the economic growth it recorded in 2015 after six years of recession, forcing the funds to look at alternative bonds.The Category A funds also had high holdings in shares and GDRs – 25% in domestic issues and 12.5% in foreign ones, with foreign equities generating the higher returns.The respective holdings for B funds were 10.5% and 8.6%.Share activity by the mandatory funds in 2015 included participating in major recapitalisations, notably those of the food producer Podravka, Port of Rijeka (the country’s largest port), the postal bank Hrvatska poštanska banka and tanker operator Tankerska Next Generation.The new government, approved this January, appears set to call on the pension fund sector as part of its financing plans.Damir Grbavac, president of the management board of Raiffeisen Mandatory and Voluntary Pension Funds Management Company, said: “We have established contacts with the new government, and it seems we are very much appreciated as potential investors in infrastructure, possible privatisations of listed companies in which the state has minority ownerships, and pending privatisations in general.“Within that framework, discussions about Croatian motorways have been started again, but they are still in a very early phase.”Total membership as of the end of December 2015 grew by 1.5% year on year to 1.73m, and assets grew by 1.2% in Croatian kuna terms to HRK74bn (€9.7bn), of which HRK25bn were investment earnings accumulated since the start of the second pillar.In the case of the voluntary sector, returns for the six open-ended funds ranged from 2.07% to 6.88%.Assets grew by 14.8% to HKR3bn, and membership by 7.5% to 236,948.For the 16 closed-end funds in operation since the start of 2015, the returns ranged from 3.32% to 8.11%, with assets up by 14.3% to HRK681.2m, and membership by 20.3% to 28,776. Croatia’s mandatory second-pillar funds generated impressive returns in 2015 compared with many of their regional peers.The Category B funds, which account for 98.6% of total membership, achieved an annual nominal return of 6.19% last year, albeit down from 11.36% in 2014, according to the Croatian Financial Services Supervisory Agency (HANFA), the sector’s regulator.These medium-risk funds were the original vehicles set up in 2002 when Croatia launched the second pillar, and became the default option for those who did not exercise their choice when the lifecycle system came into effect in August 2014.The new system introduced Category A high-risk funds open to all those with more than 10 years left to retirement, and low-risk Category C funds, open to all but compulsory for those with fewer than five years left to retirement.last_img read more

UK seeks to ease burden on multi-employer scheme exits

first_imgEmployers seeking to exit industry-wide schemes could be permitted to postpone so-called ‘section 75’ debt payments under draft rules from the UK’s Department for Work and Pensions (DWP).In a consultation published on Friday, the DWP said companies should not have to pay all their obligations towards multi-employer schemes immediately when withdrawing. Currently, if a company seeks to exit a multi-employer scheme because it has no active members left, it must pay a lump sum to cover its remaining pensioner and deferred member liabilities.This sum can also include contributions to other companies that previously left the scheme or went bust, known as ‘orphan liabilities’.The rule affects some of the UK’s biggest pension funds, including the Universities Superannuation Scheme, RPMI Railpen, and the Merchant Navy Officers’ Pension Fund. The DWP said: “The government proposes to introduce a new option for employers in multi-employer schemes to defer the requirement to pay an employer debt on ceasing to employ an active member. This deferred debt arrangement would be subject to a condition that the employer retains all their previous responsibilities to the scheme and continues to be treated as if they were the employer in relation to that scheme.”The proposal was initially consulted on during the previous government in 2015.Alistair Russell-Smith, scheme actuary at Hymans Robertson, said the proposals provided “much-needed relief” for employers, “many of whom allow further defined benefit risk and liability to build up so as not to trigger punitive exit debts”. “This deferral is the easement we advocated when responding to the 2015 call for evidence and strikes a better balance between scheme security and employer sustainability than other options on the table such as weakening the basis of the exit debt,” Russell-Smith said. “However, employers do need to be aware that this is not a silver bullet for managing the cost and risk of multi-employer schemes. The lack of influence and certainty over future funding costs and the need to fund orphan liabilities both remain real concerns.”Joe Dabrowski, head of investment and governance at the Pensions and Lifetime Savings Association, said the consultation was “vital”, as it affected some of the UK’s largest schemes as well as many charity pension funds.“The proposals could make the system more sustainable by allowing employers to better manage their risks – in the same way that employers participating in single employer schemes can,” he added. “However, there is little question that in a non-associated multi-employer scheme a departing employer must cover its liabilities to the scheme. So we will need to look carefully at the details of the proposed changes to ensure that the right balance of member protection and employer flexibility is achieved. The strength of the ongoing relationship between employers and the scheme is essential to ensuring this.”The relaxing of the rules comes as support has grown for greater consolidation of small pension schemes. One barrier to consolidation in the UK is the perceived regulatory difficulties of combining schemes, and how their liabilities would sit alongside each other.The DWP’s consultation is open until 18 May and can be accessed here.last_img read more

​NBIM calls for harmonised EU supply chain due diligence approach

first_imgNorway’s oil fund is calling on the European Commission to harmonise the approach to supply chain due diligence in Europe as part of a planned renewed sustainable finance strategy.In its response to the Commission’s consultation on the strategy, which ends next week, the manager of Norway’s NOK10.3trn (€963bn) sovereign wealth fund said: “It would be helpful to have a European harmonised approach to supply chain due diligence, that would implement international standards in a consistent manner, thereby ensuring a level-playing field for companies operating in the Single Market.”In its letter, NBIM’s chief corporate governance officer Carine Smith Ihenacho and Séverine Neervoort, senior analyst, corporate governance wrote that the subsidiary of the Norwegian central bank had an inherent interest in how companies managed their use of natural and social resources and addressed supply chain risks.This could have a bearing on their ability to create financial value, the pair said. Firms should understand the broader consequences of their operations on society and the environment, they said.“They should have an adequate supply chain management system in place, including policies and measures for detecting, preventing and responding to environmental and human right risks in their supply chain,” Smith Ihenacho and Neervoort wrote.NBIM also made suggestions about EU harmonisation in two other areas — corporate sustainability reporting and the shareholder voting process.On corporate sustainability reporting, it said investors required more information from companies about their risk exposure and management, in order to better integrate environmental and social risks into financial decision-making.In their final point, concerning shareholder voting, the NBIM pair also reiterated concerns expressed in other consultations, telling the Commission investors needed to be able to vote at company meetings in all markets, but that Norges Bank had encountered obstacles in the past due to manual processes, a lack of standardisation and diverging rules.“We would thus welcome further harmonisation of rules, for instance regarding the cut-off date, the timing between the receipt of the meeting’s materials and the deadline to cast votes, as well as the introduction of automatic vote confirmation (not solely on request),” they wrote.Looking for IPE’s latest magazine? Read the digital edition here.last_img read more

“Its high-time the rules in boxing changed”: MC Mary Kom

first_img 10 months ago Booker Prize awarded jointly to Margaret Atwood, Bernardine Evaristo LIVE TV “I still can’t believe it. Its like you hit a six and the umpire gives you out. The world saw. You saw. But the referee has all the power to hold & raise the loser’s hands up for a decision. And this was a clear cut foul play and cheating. I think, time has come relook the boxing points system and the criteria of giving points very closely. Its just becoming whims and fancies of the judges. How can this be allowed for so long? If this can happen with recognized and top boxers then just think what’s happening with the not so famous boxers?”, the eight-time world championship medallists said. FOLLOW US Session ID: 2020-09-09:f779795370776cb0bba29380 Player Element ID: video_player_5f5849427ee08 OK Close Modal DialogBeginning 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.Close Modal DialogThis 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 Rate1xFullscreen Written By Video Player is loading.Play VideoPlayMuteCurrent Time 0:00Loaded: 0%Duration 0:00Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedSubtitlessubtitles settings, opens subtitles settings dialogsubtitles off, selectedAudio TrackQuality LevelsFullscreenThis is a modal window. This video is restricted from playing on your current domain Error Code: PLAYER_ERR_DOMAIN_RESTRICTED COMMENT Suman Ray 10 months ago Booker Prize: How did the jury break rules in choosing 2019 winners 10 months ago “No rules” for BCCI Electoral Officer? Absent during nominations SUBSCRIBE TO US Last Updated: 16th October, 2019 10:30 IST “Its High-time The Rules In Boxing Changed”: MC Mary Kom Legendary Indian boxer MC Mary Kom called for an immediate overhaul in world boxing saying its high time to revise its “opaque” rules & points system. READ | NBA legend Larry Bird is the inspiration behind the Twitter logoCheating and conspiracy against India allegedEarlier, India’s two-time Olympic medallist Sushil Kumar has made strong allegations of “cheating and conspiracy” done against legendary boxer Marykom saying “intentional wrong decision was given by the referees against her. We have seen it earlier as well. It happened with top wrestlers and boxers in the past. I appeal to the World bodies to review this decision and earlier decisions.” Mary Kom still became the most decorated and successful boxer (men/women) in the history of World  Championship when she lost the semi-finals and clinched the bronze, though the result was anything but controversial. In a split verdict, Mary lost 1-4 to Busenaz Cakiroglu of Turkey in the semi-finals to clinch the bronze.READ | Eliud Kipchoge Nominated for IAAF Male Athlete of the Year awardDespite landing in more & clean punches, the judges differed in their opinion and finally, 1:4 decision was given in favour of her Turkish opponent. Mary Kom still made an appointment with the history and rewritten it by clinching the 8th World Championship medal. The Manipuri legend had targeted an unprecedented eighth final gold overall. India had raised a Yellow Card but as per AIBA’s instruction in a Team meeting this morning; it was informed that protests will be granted only if scores read 3:2/3:1. Our appeal to protest was hence turned down and the Yellow Card was not accepted by the technical committee. The result will stand the same; Mary Kom ends her campaign in the 2019 edition with a Bronze medal.READ | WC Silver is a tight slap on my detractors’ face: Manju RaniREAD | Mary Kom questions the fairness of AIBA tournaments WE RECOMMEND 10 months ago Bangladesh Premier League 2019: T20 cricket tourney’s wacky rules! “I dont know what’s happening. The marginal points are always going against India and in this case it it was a one-sided show. I had comoletely dominated the bout. Its a clear cut conspiracy to prevent me from getting the 7th World title.” First Published: 16th October, 2019 10:30 IST 10 months ago ICC announces change in the Super Over rules to decide matches Citing the “horrible” decision against her in the semi-finals of World Boxing Championship when despite hitting “more & clean” punches she was “adjudged the loser”, the legendary MC Mary Kom called for an immediate overhaul in world boxing saying its high time to revise its “opaque” rules & points system.MC Mary Kom believes she dominated the bout WATCH US LIVElast_img read more