“Over the past two and a half years, we’ve done a major overhaul of how we think about it, how we analyse it.”ATP splits its assets into an investment portfolio, consisting of its bonus reserves, which are worth around DKK100bn, and a much larger hedging portfolio worth about DKK670bn, which is designed to back its pension guarantees.The new investment portfolio shape is still a work in progress and will be announced officially with the pension fund’s year-end results in January, Stendevad said.The strategic changes ATP has been gradually making since 2013, encompassing many areas of its operation, have been prompted by problems facing the fund such as low interest rates, changing diversification patterns between asset types and the significant drop in market liquidity over the last 13 years, he said.ATP had been concerned that a portfolio construction approach centred around traditional asset classes overestimated the amount of diversification actually achieved.“We have gone a different way, thinking very intensively about risk factors,” Stendevad said.The team behind the move had questioned, for example, whether real estate and infrastructure were really very different, or whether they could somehow be broken down into some common risk factors.“From now on, every single investment we have we decompose it into four risk factors,” Stendevad said.Commodities are now included within the inflation factor group, while unlisted equities are largely included in the equity factor group but partially in the “other factors” group. Index-linked bonds are included in both interest rate factor and inflation factor groups, while corporate bonds fall within the interest rate factor group and the equity factor group.The “other factors” group is basically a combination of alternative risk premiums in the liquid space – long-short strategies, momentum and low volatility, for example – as well as the pure form of illiquidity premiums, Stendevad said.ATP has set a pre-tax absolute return target of 9% a year over time for its investment portfolio.This is based on what the fund needs to achieve in terms of generating returns for scheme members that beats inflation, Stendevad said.Another part of the investment overhaul is a sharper focus on direct investments.While the pension fund lacks the scale to invest 100% in-house, it is now thinking hard about which investments it wants to have in-house and how much value it is actually getting from external mandates.“One of the changes we have made is really in the illiquid space,” Stendevad said.“We have far fewer funds – we have reduced this by almost €1bn, and that trend will continue.”From mid-2013 to mid-2015, ATP’s fund investments fell to €7.5bn from €8.7bn, while direct investments – including equity, real estate and infrastructure and structured credit – more than doubled to €6.2bn from €2.8bn, according to data Stendevad showed.ATP could take direct equity investments by participating in IPOs, he said, or in situations where listed equity is being taken private, for example.“Today, we have some real estate funds, but, as soon as we can unwind them, we will go over to a pure-play, direct investment strategy,” Stendevad said, adding that the pension fund had already made good headway here. Denmark’s ATP has revealed the final shape of its return-seeking investment portfolio after a long overhaul of its wider strategy including portfolio construction, with the assets now being grouped under four “risk factors” rather than the five “risk classes” it has used since 2006.The statutory pension fund, which manages around DKK770bn (€103bn) in assets, announced at the 2015 IPE Conference in Barcelona that its DKK100bn investment portfolio would now be separated into “interest rate factor”, “inflation factor”, “equity factor” and “other factors” groupings.This is a change from the previous construction, which involved five risk “classes” – commodities, credit, inflation, equity and interest rates.Carsten Stendevad, chief executive at ATP, said: “Since 2006, we’ve thought about risk classes and risk budgets, and that’s been very ingrained in us.
Published on December 3, 2015 at 12:26 pm Contact Paul: [email protected] | @pschweds Comments Related Stories NCAA denies Jim Boeheim’s 9-game suspension appeal, will begin Saturday vs. GeorgetownMike Hopkins will coach his 1st game ever on Saturday against Georgetown Facebook Twitter Google+ Syracuse head coach Jim Boeheim’s nine-game suspension will begin on Saturday against Georgetown. Initially, the NCAA ruled in March that Boeheim’s suspension would be for conference games. Following Boeheim’s appeal, the NCAA announced Thursday that while the nine-game suspension would stand, it’ll begin immediately. Boeheim will now miss six nonconference games and three conference games.Here is SU’s full statement from Senior Vice President of Public Affairs Kevin Quinn:“Today, the NCAA Infractions Appeals Committee issued its decision in response to Head Men’s Basketball Coach Jim Boeheim’s appeal of the sanction imposed on him on March 6, 2015. Coach Boeheim submitted his appeal on March 20, 2015.“The Appeals Committee determined that the NCAA Committee on Infractions ‘abused its discretion’ by directing the suspension be served during conference play, because Coach Boeheim was not directly involved in the underlying violations of the case. The Appeals Committee determined the nine-game suspension may apply to non-conference games and be served immediately.“The University is pleased the Appeals Committee recognized that the initial sanction imposed on Coach Boeheim was too harsh. Nevertheless, we supported Coach Boeheim’s argument made during his hearing that any nine game suspension would be too severe based on previous cases, and his lack of involvement in the underlying conduct, which the Appeals Committee recognized.AdvertisementThis is placeholder text“As Chancellor Syverud said in March, Coach Boeheim has been a mainstay at Syracuse University for more than one-third of our 144-year history. As we now move forward as a University, we join Coach Boeheim in his continued focus on ensuring our student-athletes receive the best possible education and achieve their highest potential in the classroom and on the court.”Here is the NCAA’s full report on the appeal decision:NCAA Final Report on Boeheim's Appeal
On 13 April, 58 years ago, current manager of BiH football team and the all time best player of BiH Safet Sušić was born.Sušić began his career with the football club Krivaja in his hometown Zavidović and later he was transferred to FK Sarajevo, where he was to become a legendary figure by the late 1970s. During the 1979–80 season, he was top scorer in the Yugoslav First League with 17 goals. In 1979, he was honoured as the Yugoslav Footballer of the Year, also being selected as the best athlete coming from the Republic of Bosnia and Herzegovina.In 1982, Sušić signed with Paris Saint-Germain, where he became a star. Hardly ever injured, he performed at a high level well past his 30s. The Yugoslav international was never injured nor suspended, thus allowing him to score 96 goals and make a record 61 assists for PSG between 1982 and 1991. At 36, Sušić left the capital for a final year with Red Star Saint-Ouen.During a 13-year span, Sušić appeared 54 times with the Yugoslav national team, netting 21 goals, in spite of the fact that he was always in the role of midfield playmaker. He represented the nation at the 1982 and 1990 World Cups, and at Euro 1984. On 19 June 1990, Sušić opened the score in Yugoslavia’s 4–1 World Cup win against the United Arab Emirates, aged 35.In 2004, to celebrate UEFA’s Jubilee, he was selected as the Golden Player of Bosnia and Herzegovina by the Football Association of Bosnia and Herzegovina as their most outstanding player of the past 50 years.When he retired Sušić coached Cannes and from 2003-2004 he managed İstanbulspor and Konyaspor.On 28 December 2009, Sušić was named coach of the Bosnia and Herzegovina national football team. His debut was a friendly match against Ghana in Sarajevo. Bosnia and Herzegovina won the game 2–1 after goals from Vedad Ibišević and Miralem Pjanić.As of 11 November 2011, Sušić’s Bosnia national football side was on a seven game unbeaten streak run. BiH football team, together with Safet Sušić is on the good path to qualify for 2014 World Cup which will be held in Brazil.