World briefs: Canadian funds turning to real estate in Europe

LONDON — Canadian public and corporate pension funds are increasing their property investments abroad, particularly taking advantage of good deals in cash-strapped Europe, according to a report Oct. 3 by global real estate advisory firm DTZ.

Canadian institutional investors bought more than $10 billion in real estate last year in the U.K., Germany, France and Russia, as well as the U.S. and Australia. At the end of 2007, property investments reached 7% of their total portfolios. Most are aiming to increase real estate holdings to a value equal to 10% to 15% of their portfolios, according to the report.

AUCKLAND, New Zealand — The New Zealand Superannuation Fund, Auckland, returned a net -4.92% on its investments for the year ended June 30, losing NZ$716.5 million (US$487.9 million), according to a news release on the fund's website.

However, the fund's assets grew to NZ$14.1 billion, up 7.7% from a year earlier, the result of a net government contribution of NZ$2.1 billion.

The turbulence in global equity markets affected the fund despite its lack of “significant exposure to the subprime market, the finance company sector, or to the liquidity strains suffered by many financial institutions,” David May, chairman of the fund's Board of Guardians, which oversees the fund, said in the news release.

The fund returned about 0.23% from July through August, Adrian Orr, Guardians' CEO, said in the release.

“We are going through a significant and rapid rearrangement of the global financial system. These are dramatic and unsettling times,” Mr. Orr said. “Even then, however, the aggregate impact on the fund, while not pleasant, is not outside the bounds of our long-term expectations to date.”

PARIS — Jean-Pierre Mustier was appointed head of Societe Generale's global investment management and services division, which comprises asset management, private banking and custody business, confirmed spokeswoman Mireille Mourtada.

Mr. Mustier will replace Philippe Collas, who will retire from his role in the global investment management and services division but remain with the bank as senior adviser to SocGen Chief Executive Officer Frederic Oudea.

Mr. Mustier will also become chairman and CEO of Societe Generale Asset Management, replacing Alain Clot, who will be appointed to another position within SocGen that Ms. Mourtada said has not been announced.

SocGen's investment management and services division had €381.4 billion ($540 billion) in assets under management as of June 30, a drop of about 18% from €467 billion a year earlier. In the first half of 2008, the group suffered outflows totaling €7.6 billion compared with total asset inflows of €36.4 billion in the first half of 2007.

Mr. Mustier was CEO of SocGen's corporate and investment banking division. Michel Peretie, former CEO of Europe for Bear Stearns, replaced Mr. Mustier as CEO of corporate and investment banking, according to Ms. Mourtada.