Diversified fund market to double after spike in DB inflows

first_img“£10 billion flowed from this source in 2013, off a previous estimated base of only £30 billion.”The popularity of DGFs among the DB schemes is set to grow, as inlflows get close to £80bn by 2019, according to SpenceJohnson’s projections. DC schemes are expecetd to be allocating £20bn, up from £6.6bn currently.Much of the increase comes with an implicit requirement for DGFs to provide investors with more alpha, rather than static allocations.“The ‘diversified beta’ portion of a DGF is becoming less valued,” SpenceJohnson said.“This is combined with the emergence of risk factor investing where these sources of beta can be more accurately targeted using smart beta funds.“We believe that there will be an increasing onus in selection on exposure to market returns within DGFs being cost effective.“This will sit alongside DGF managers needing to be more explicit about how they provide alpha.”The current market is dominated by institutional allocations, with a share of 78%, according to estimates that include an educated guess of non-UK allocations coming from pension funds abroad.Dynamic DGFs also dominated the £97bn market, attracting over 60% of assets.Popularity of the dynamic strategy is underpinned by its preference among DB investors who allocate 70% of their own assets to the strategy.Average allocation within DGFs saw equity allocation reach just over 40%, with alternatives creeping over 20%.The data showed fluctuating allocations over the previous years, with the use of equities ranging from over 50% in 2009, to as low as 30% in 2011, before stabalising.Funds had shifted away from alternatives in the last year but placed greater emphasis on cash, with bond allocations also falling.Within the 27 funds analysed, allocations varied dramatically, with equity holdings ranging from well over 60% to as low as 15%.Similarly, the use of cash, and alternatives, also varied depending on the manager, and the targets set by fund.Alternative allocations went as high as 75% in one fund, compared to others that had less than 5% invested in the classes.Within equity portfolios, average allocations to UK equities hit 6% and emerging market equities 4%.The firm also predicted emerging markets would soon account of 15% of DGF allocations.“We believe this to be the case for two reasons. Firstly, the broader trend within UK pensions to diversify away from UK equities. Secondly, the increasingly international investor profile of the DGF market,” the report said.Within alternatives, real estate was still the most common, followed by commodities and absolute return investments. Adoption of diversified growth funds (DGF) by UK defined benefit (DB) schemes was underestimated, after 2013 witnessed £10bn of inflows, new research shows.Data, from market intelligence provider SpenceJohnson, showed the entire DGF market may reach £201bn by the end of 2018, up from £97bn at the end of 2013.It grew £22bn over 2013, with nearly half of all inflows coming from UK DB schemes.“The speed of adoption by DB schemes witnessed in 2013 was much faster and more significant that expected,” the report said.last_img read more

Renovated home on Port Douglas’ Flagstaff Hill among luxury homes

first_imgIT only changed hands in May last year but after a glamorous refurbishment and work to increase the stunning views from Port Douglas’ highest point, 44 Island Point Rd is ready for a new owner. The pool. Need we say more.With only four homes accessed from the southern lookout end of Island Point Rd, number 44 allows for an 180 degree vista that takes in the entire southern coastline towards Cairns over the Coral Sea, Port Douglas’ Fourmile Beach, the hinterland hills and north over the marina and the Macalister Ranges. >> SIGN UP NOW: GET A FITBIT WITH THIS CAIRNS POST SUBSCRIPTION Walk into the spa straight from your room.Polished Italian Crema Marfil marble has been used in the formal areas and the grand staircase and western-red cedar lined the cathedral ceilings. Private inspections of the 1524 sq m hillside home are recommended. Fancy lunch with a view?‘The end result is a fantastic tropical feel throughout that exceeds all expectations.“This property is an excellent example of a marquee tropical residence — that would be perfect as a northern home, a luxury holiday rental or even a lock and leave lifestyle escape.”More from newsCairns home ticks popular internet search terms2 days agoTen auction results from ‘active’ weekend in Cairns2 days agocenter_img The home has been renovated with Italian marble.Mr Jones said in the last two years the other three homes have all traded owners — all selling between $4.85 and $6.4 million.The entryway is built with ponds and water features cascading down to a series of pools and waterfalls that end in the atrium. 44 Island Point Rd, Port Douglas is nestled among rainforest at Flagstaff Hill.On the market for $6.7 million, no expense has been spared to bring the Flagstaff Hill stunner, called Tanamera, back to its former glory.“The owners recently employed Natalia Greig of Island Point Interiors to completely refurbish the home and oversee the improvement renovations that took place on the property,” said The Pink Property agent Callum Jones. Nothing but quality furnishings.In the master suite a wet edge sky spa flows over the edge of an imported Italian stone wall to an infinity pool below.A purpose-built alfresco dining pavilion serviced by a teppanyaki grill and wet kitchen, complete with timber wrap around bar will please entertainers and a cantilevered viewing room with a wall of floor to ceiling glass showcases more of the tropical view.last_img read more

Bundesliga Trophy for Open Viewing

first_imgIt’s a trophy fiesta in Nigeria as the Bundesliga trophy arrives just as the FIFA World Cup departed Abuja for Lagos. Football fans in Nigeria, especially supporters of German top side and current Bundesliga tittle holders FC Bayern Munich are in for a show as the Bundesliga trophy goes on display in Abuja courtesy of FC Bayern and StarTimes Nigeria.StarTimes had last week announced plans to entertain subscribers and followers of the Bundesliga with an open viewing of the trophy in Abuja today.The trophy viewing is part of activities scheduled to mark the final ceremony of the ongoing FC Bayern youth cup which commenced in January of which StarTimes is a sponsor.“The trophy will be on display at Aduvie International School in Jahi District, Abuja from 11am till about 3pm during which fans can take pictures, videos and interact with some FC Bayern legends who will be present at the event” said Qasim Elegbede, Brand and Marketing Director at StarTimes.He added that “This is the first time ever the trophy is coming to Nigeria and we are very much excited to be a part of it. Followership of the Bundesliga in Nigeria is improving and this activity is to further engage the fans, partners, sports journalists and every football lover to a nice football moment” he concluded.The trophy departs Nigeria on Sunday, for a similar activity at the finals of the Youth Cup Tournament Singapore.Share this:FacebookRedditTwitterPrintPinterestEmailWhatsAppSkypeLinkedInTumblrPocketTelegramlast_img read more