New Zealand mayallow pension fund
to invest in equities
WELLINGTON, New Zealand -- Legislation pending in New Zealand's parliament would allow the Government Superannuation Fund to invest in equities. The legislation is not expected to be passed before next year.
Currently, the NZ$3.5 billion (US$1.4 billion) fund is 70% invested in government bonds, with the remainder in other forms of fixed income. The fund has an unfunded liability of NZ$4.9 billion.
Its proposed portfolio, subject to decisions by a yet-to-be-appointed board, Finance Minister Michael Cullen and investment consultants, would be a diversified portfolio of equities, domestic and international fixed income and property.
Allowing the fund to invest in equities would save the government NZ$12 million to NZ$42 million a year.
The decision is not connected with the previously announced plan by Mr. Cullen to establish a national superannuation fund that could reach NZ$240 billion over 50 years. But, he said, the move to diversify the fund for civil servants had relevance for the wider superannuation debate.
action on managers
ROME -- Alifond, the pension fund for the food and beverage industry, by year's end will draw up a shortlist for three to six balanced managers to run assets, said Mauro Bichelli, director for the e25 million (US$21.5 million) plan. The balanced mandates each would have varying allocations between equities and fixed income. The contracts would be for three years, but Mr. Bichelli added fund trustees would look closely at costs.
finishes Pioneer acquisition
MILAN -- Unicredito Italiano, the Milan-based banking group, completed its acquisition of Pioneer Group. The $1.2 billion deal was approved by the Federal Reserve Board Oct. 23, following shareholder approval Sept. 29.
Pioneer also completed its spinoff of Harbor Global, which housed Pioneer's non-investment management endeavors, including timber harvesting and real estate management. "Pioneer wants to focus on the core asset management business," said Tara Pescatore, Pioneer spokeswoman.
Pioneer shareholders will receive certificates of ownership in the new company, which will operate its businesses with the purpose of liquidating the assets and distributing proceeds to shareholders within five years, she said.
CB Richard Ellis
opens Paris office
LOS ANGELES -- CB Richard Ellis Investors, the $9.8 billion investment management arm of global real estate services firm CB Richard Ellis, opened an investment management office in Paris to service international investor clients.
The new office will be headed by Thibault de Valence, a former team leader for Goldman Sachs' Archon group. Mr. de Valence and his team will invest in office, residential and retail properties where value can be added through redevelopment, re-leasing and other active management techniques.
Eurex offers expanded
version of trading system
ZURICH -- Eurex on Oct. 23 launched a new software version of its trading system that includes the ability to trade derivatives on the European Energy Exchange. Release 4.1 makes entering and confirming over-the-counter block trades easier and allows the clearing feature to print and export files.