Pension fund for Dutch medical consultants returns 10% over H1

first_imgSPMS, the €10bn occupational pension fund for medical consultants in the Netherlands, returned more than 10% on investments over the first six months of the year.It attributed its performance largely to the effect of falling long-term interest rates on its 55% fixed income portfolio.The return, however, was relative, as liabilities increased by even more.The scheme’s funding fell by 2 percentage points to 117%, as of the end of June. According to its 2015 annual report, SPMS decided to introduce infrastructure debt as a new asset class with a target portfolio of 5%, in a bid to diversify its portfolio.The new investment category is to come at the expense of the full allocation to inflation-linked bonds, as well as 2 percentage points of the scheme’s stake in hedge funds, which is to be reduced to 7%.Jeroen Steenvoorden, director at SPMS, pointed out that the risk profile of infrastructure debt was lower than that of direct infrastructure investments.The expected return, however, is also lower, according to Steenvoorden, who estimated that performance would range between 2.5% and 3%.He said the board still needed to decide whether the investment was to come as a mandate or through a fund, adding that the managers’ selection had not yet been completed.SPMS reported a net annual return of 0.9%, chiefly due to considerable losses on its full hedge of the currency risk on the US dollar, Japanese yen and British pound, which all appreciated relative to the euro.The pension fund for medical consultants also made a 0.7% loss on its interest hedge as a consequence of the 0.2% interest rate rise last year.It said property delivered 11.7%, in particular thanks to listed real estate in Europe and the US, which returned 19.4% and 19.9%, respectively.Equity returned 8.4%.The scheme attributed the 4.4% return on fixed income largely to US credit (11.2%), emerging market debt (4.7%) and inflation-linked bonds (6.8%)Government bonds produced 0.3%, while the pension fund lost 1.5% on European credit.Last year, SPMS lowered its risk profile by replacing 8% of its equity portfolio with an equal percentage of government bonds, while raising its interest hedge from 70% to 78% of liabilities.In its opinion, the adjustment of the interest hedge offsets a slower improvement of its financial position once interest rates rise again.SPMS posted costs for asset management and transactions of 0.61% and 0.18%, respectively, and said it had spent €544 per participant for pensions administration.The scheme carries out an occupational pension plan for 7,500 self-employed medical consultants and has 6,700 pensioners.last_img read more

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Cuban fined for overstaying in Guyana

first_imgA 43-year-old Cuban, who claimed that he came to Guyana in search of a job, was on Friday fined by Chief Magistrate Ann McLennan at the Georgetown Magistrates’ Courts for overstaying in the country.Eulices Marquez Echevarria, a cook, admitted to the charge which detailed that between August 14 and 15, 2019, he failed to comply with conditions submitted with a permit that has been granted, that is to stay from June 14, 2019, to July 13, 2019, in Guyana.In an explanation to the court via an interpreter, Echevarria told the court “I didn’t know…I came here to work and see the country”.However, facts presented by Police Prosecutor Gordan Mansfield stated that on June 14, 2019, Echevarria came to Guyana via the Cheddi Jagan International Airport and was granted a one month stay in the country.The prosecutor further added that on August 14, 2019, Echevarria was going to Brazil when he was stopped by Police at Mabura. The ranks asked the defendant to provide his travel documents, during which it was discovered that he had overstayed. He was later transported to the Criminal Investigations Department (CID) headquarters where he was questioned and later charged for the offence.Chief Magistrate McLennan fined the foreign national $20,000 with an alternative of eight weeks in prison. He was also ordered to be deported.last_img read more

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