Portuguese funds see returns fall as debt allocation struggles

first_imgPerformance figures were submitted by so-called ‘closed’ funds, which are generally pension plans for a single employer or group of companies, and which make up the vast bulk of occupational plans.The WTW universe covers around €13bn in assets, which is 80% of the closed pension fund market in Portugal. It incorporates more than 100 pension funds within the figures to end-December 2016, including the five biggest pension fund managers in Portugal.The figures are based on median performance over each timeframe.The final quarter of the year had produced returns which – at 0.6% – dipped below the previous quarter’s, of 1.4%.Guedes said: “The Portuguese pension fund market has a euro bond exposure of roughly 60%. The fourth quarter was poor for euro bonds in general, and slightly worse for eurozone government aggregate bonds. Another factor in these low returns was probably the high exposure to direct real estate and liquidity, giving a significant ‘cash drag’ effect.”He also highlighted the bias normally found in using local asset managers for local assets: “It’s probably worth noting that the PSI 20 [the top 20 stocks on the Lisbon Stock Exchange] had a painful performance, losing 12% over 2016.”According to regulator ASF, debt was still the single biggest asset in Portuguese pension fund portfolios, with 49% invested directly in the asset class as at end-December 2016. Of this, 31% was in public and 18% in private debt.Direct equity holdings were 8% of portfolios, while direct real estate made up 8%. A further 7% was in cash.In addition, investment funds formed 29% of portfolios, but the split between asset classes was not published.However, estimates from the Portuguese Association of Investment Funds, Pension Funds and Asset Management (APFIPP) broke down the investment fund figures to give an overall asset allocation of 57% in debt, 21% in equities and 13% in real estate.The APFIPP sample covered 87% of the Portuguese pension fund market.Guedes said: “The star of 2016 was definitely the US stock market, mostly due to the ‘Trump effect’ which pushed stock prices through the roof during the fourth quarter of 2016. Given the relatively conservative allocation of the closed pension funds market, the gains arising from the strong performers for 2016 (US, China and oil-driven commodities), were somewhat limited in Portuguese portfolios.” Occupational pension funds in Portugal made an average 1.8% investment return for the 2016 calendar year, down from 3.3% for 2015, according to Willis Towers Watson (WTW).The figures brought average annualised returns for the three years to 31 December 2016 to 4.3%, and for the five years to that date, to 5.8%.Gaudêncio Guedes, an investment consultant at WTW, said: “From the general performance indices, we would have expected around a 4% return overall – excluding real estate – for 2016, if we consider the actual asset allocation of the closed pension funds.“However, the first quarter of 2016 was a tough one for financial markets and it may well have triggered a number of difficult decisions by managers regarding the investment strategies to be adopted that set the path for the rest of the year.”last_img read more

Update on the latest sports

first_imgUpdate on the latest sports April 11, 2020 — The Orlando Magic’s home arena will become a distribution center for medical equipment and supplies as part of the ongoing response to the coronavirus pandemic. The Amway Center will be a hub for equipment and supplies that will go to 50 hospitals in Central Florida as well as facilities in seven other states.— The American Hockey League’s Syracuse Crunch has loaned two sanitation machines to a local hospital to see if they could help clean personal protective equipment worn by hospital staff. The Crunch uses one of the machines in its locker room and the other to clean equipment but doesn’t need them right now with sports on hold because of the coronavirus pandemic. Turns out they’re a good fit at Upstate University Hospital.FIFA INVESTIGATION-BLATTERSwiss prosecutors intend to drop 1 FIFA case against BlatterGENEVA (AP) — Former FIFA (FEE’-fuh) president Sepp Blatter has won a legal victory in his fight since 2015 against Swiss allegations of criminal mismanagement. Federal prosecutors in Switzerland plan to drop one of two cases open against him. Associated Press The Swiss attorney general’s office on Saturday confirmed reports they intend to close an investigation into how Blatter and soccer governing body FIFA awarded World Cup broadcast rights in the Caribbean in 2005.The decision is the latest example in recent weeks of the Swiss FIFA cases stalling, while the separate and cooperating American investigation sparked back into life with new indictments and fresh allegations of World Cup bid bribery.The criminal proceeding against Blatter was opened 4 ½ years ago and helped remove him from the presidential office he held for more than 17 years. He is serving a six-year FIFA ban from soccer.The Swiss prosecution office says a second criminal proceeding against Blatter — for a $2 million payment he authorized to FIFA vice president Michel Platini in 2011 for uncontracted salary — remains open.,Tampa Bay Lightning advance to face Dallas Stars in Stanley Cup finals, beating New York Islanders 2-1 in OT in Game 6 Rizzo says no players for the reigning World Series champions have shown any symptoms of COVID-19 at any point and so no one has been tested. He said the team’s medical staff checks in each day with every player and staff member.Rizzo said the ailing employee was at the team’s spring training facility in West Palm Beach, Florida, and now is home after his quarantine ended. Rizzo said the employee is fever-free and symptom-free.In other news related to the coronavirus pandemic:— The XFL has suspended operations and laid off its employees. Employees were told of the layoffs Friday during an in-house conference call. The upstart league backed by WWE canceled the remainder of its season last month because of the coronavirus pandemic, but promised to be back in 2021. The moves have left the league’s future in doubt. The XFL has eight franchises and played five games out of a planned 10-game schedule.— The Arizona Coyotes will furlough half of the organization’s employees with the NHL season on hold due to the coronavirus outbreak. The furloughs began Friday and will last through June 30. The Coyotes say all furloughed employees will continue to receive 100% of health benefits. Share This StoryFacebookTwitteremailPrintLinkedinRedditVIRUS OUTBREAK-SPORTSNationals report 1 positive test, not a playerUNDATED (AP) — Washington Nationals general manager Mike Rizzo says a non-playing team employee tested positive for the coronavirus and is “on the road to getting better.”last_img read more

ESIC forms eSports advisory partnership with UK Gambling Commission

first_img StumbleUpon UKGC launches fourth National Lottery licence competition August 28, 2020 Share Winning Post: Swedish regulator pushes back on ‘Storebror’ approach to deposit limits August 24, 2020 Submit ESI Digital – No Drama Please… Esports growth should be treated as business as usual  August 20, 2020 Related Articles Share Non-profit Esports Integrity Coalition (ESIC) has detailed that it has signed a memorandum of understanding with the UK Gambling Commission (UKGC), which will see the organisation become an adviser on the detection and prevention of betting malpractice within eSports.Set-up in 2015, ESIC’s aim is to uphold the integrity of eSports and its related stakeholders against match manipulation and potential betting fraud.As an advisor to the UKGC, ESIC will now form an information-sharing partnership with the commission and may be asked to give insight and opinion for the UKGC on matters relating to eSports integrity.Ian Smith Commissioner for ESIC commented on the partnership “This memorandum of understanding is a significant step for ESIC and the eSports community,”“The Gambling Commission has significant resources and powers that will be invaluable in helping to combat any emergence of organised crime or serious fraud within our rapidly growing sector.”ESIC expects to publish a guidance note to its members in the coming weeks, explaining its arrangements with the UKGC.Richard Watson, Programme Director at the UK Gambling Commission adds, “Esports is a developing sector that offers new challenges for the betting industry, with potential for further market growth.This agreement demonstrates our commitment to supporting ESIC in addressing the potential integrity risks, to help maintain public confidence in esports both as entertainment and for those who wish to place bets on British licenced markets”.last_img read more