Spanish pension funds post average 3.2% gain despite bond losses

first_imgMeanwhile, figures from Mercer’s Pension Investment Performance Service (PIPS) showed that, for the 2017 calendar year, equity allocations within Spanish pension funds returned 7.8%. Within this, euro-zone equities returned 8.4%, European equities outside the euro-zone gained 4.9%, and North American equities increased by 4.4%.Among the biggest allocations within fixed income, euro-zone government bonds made 0.2%, while euro-zone credit made 1.4%. However, government bonds, high yield and credit allocations outside of Europe contributed to an overall loss in fixed income of 0.5%.Xavier Bellavista, principal at Mercer, said these losses were due to performance and currency depreciation in non-euro-zone assets.Within alternatives, private equity made 13.3%, hedge funds 2.3% and real estate 1.3%.The PIPS survey covered a large sample of pension funds, most of them occupational schemes. It reported that Spanish funds on averaged allocated 59.9% to fixed income and 35.4% to equities.Fixed income allocations were dominated by euro-zone credit (18.8%), followed by euro-zone government bonds (18%) and 9.7% in cash. Euro-zone equities made up 17.7%, North American equities 10% and emerging markets 3.6%.According to the PIPS figures, only 4.6% of pension fund assets were held in alternatives, principally 1.7% in real estate and 1.4% in hedge funds.There has been a gradual shift away from euro-zone holdings over the long term, according to Mercer.Bellavista said: “The main difference between December 2017 and December 2016 is the increase in exposure to non-euro-zone assets… especially in fixed income. The equity exposure is the highest in the last seven years, while alternatives continue to increase slowly.”In terms of risk management, Bellavista observed that in general, during 2017 and the start of 2018, pension funds had quite a positive sentiment when looking at macroeconomic data.However, he added: “Most pension fund managers maintain a prudent approach because of high valuations and low interest rates. This is making some of them implement hedging strategies to protect against tail risk.” Spanish occupational pension funds gained 3.2% on average in 2017, according to the country’s Investment and Pension Fund Association (INVERCO).This marked an improvement on the 2.7% gain posted in 2016, and outpaced inflation, which came in at just under 2%.The fourth-quarter results brought the average annualised returns for Spanish occupational funds to 3% for the three years to 31 December 2017, and 4.8% for the five-year period.At end-December total assets under management for the sector stood at €35.8bn, an increase of 1% over the year. The number of participants in the occupational system was stable at just over 2m.last_img read more

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Nexus Starts Borkum Riffgrund 2 Cable Installation

first_imgVan Oord’s cable-laying vessel Nexus has started the installation of cables at Ørsted’s offshore wind farm Borkum Riffgrund 2, in the German North Sea.A total of 110 kilometers of cable will be laid in the wind farm to later connect the 56 wind turbines with the offshore substation.Furthermore, a cable will be laid to the nearby Borkum Riffgrund 1 wind farm, also owned by Ørsted.The installation work is expected to be completed in July. The connection to the converter platform DolWin3 will follow about one month later, the company noted.The cables for Borkum Riffgrund 2 were manufactured by Nexans in Hanover.After construction is completed, Borkum Riffgrund 2 will have an export capacity of around 450 megawatts and will be able to supply green electricity for the equivalent of around 460,000 German households.Full commissioning of the offshore wind farm is planned for 2019.last_img read more

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OPERATION TRANSFORMATION (WITH A DIFFERENCE) COMES TO BALLYSHANNON

first_img“Operation Transformation” is coming to Ballyshannon but it’s not about shedding pounds – it’s a concerted exercise in improving the town!As part of the successful Backing Ballyshannon initiative which was initiated some months ago ‘Operation Ballyshannon’ will be held on Saturday, 12th March in conjunction with the on-going work of the Ballyshannon Regeneration Group.Ballyshannon Town Clerk Mary Daly revealed: “This one-day spring clean blitz will focus in on some problem areas and improve the physical appearance of the town. “Everything from painting, power-washing, weeding, strimming, planting flowers and litter collection will be organised on the day.“We are asking local builders, painters, carpenters, labourers, sporting and community groups, business people, local schools and the general public to come out and give this one day to our town and instil some civic pride in the community.”And in a message to the people of the town, she went on: “This is your chance, your town needs you, so please give it this one day – taking part will really make a difference.”Work will commence at 10am and anybody wishing to take part should contact Ballyshannon Town Council on 071 9858270 to register. The Meeting Point on Saturday morning at 9.30am. will be Ballyshannon Town Council Offices, Abbeyview. The town clerk added: “Gloves, bags, high visibility jackets etc. will be supplied and volunteers are asked to bring along your own tools if possible. Refreshments will be served to everybody afterwards.”OPERATION TRANSFORMATION (WITH A DIFFERENCE) COMES TO BALLYSHANNON was last modified: March 4th, 2011 by gregShare this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Reddit (Opens in new window)Click to share on Pocket (Opens in new window)Click to share on Telegram (Opens in new window)Click to share on WhatsApp (Opens in new window)Click to share on Skype (Opens in new window)Click to print (Opens in new window)last_img read more

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