30/8/2009
By Sophie Baker
Northern Trust has enhanced its transfer agency product, which supports asset managers in the UK, Ireland, Luxembourg and the Channel Islands, to increase automation and provide increased straight-through processing (STP) for clients. This, Northern Trust said, would result in improved risk management. The fee rebate module provides an automated and scalable solution to support the calculation of management fees, agent trailer fees and register fee rebates. It has been designed specifically for offshore clients.
JLT Benefit Solutions Ltd has launched its new employee transfer value (ETV) management service, an administration service for these exercises. Malcolm Reynolds, commercial director at JLT, said: "It makes sense to keep an ETV and other exchange exercises separate from the day to day administration of the scheme. It means the current administration team remain focused on business as usual, whilst an independent team can drive a successful ETV, providing members with a positive experience through effective communication as well as providing the employer with key Management Information and support." The service includes project management, process administration, IFA services, call-handling and member support, communications and on-line facilities.
Aon has been appointed by Cordea Savills, an international property fund manager, to consolidate its current insurance arrangements into a pan-European insurance programme. Cordea Savills, which had previously taken a decentralised approach to insurance, has enlisted Aon to convert this into a consolidated programme to achieve consistent coverage and competitive premiums.
Finnish mutual insurance company, Pension Fennia, has reported positive half-year results, with an investment income of 3.7 per cent for 1 January to 30 June 2009. Pension Fennia also saw solvency remain at a securing level, with a ratio of 14.1 per cent of the technical provisions, and a solvency margin of 2.5 times the solvency limit. The organisation also improved its cost efficiency, using only 66 per cent of the expense loading of insurance premiums on operating expenses. "The investment market is normalising after last year's turbulence," commented Lasse Heiniö, managing director of Pension Fennia. "During the period under review we were successful both in investments and our core business. Due to the recession we kept the risk level of investment operations low and emphasised cost-efficiency."
Risk management practices among pension funds are being expanded to include non-financial, operational and strategic risks, says Aon Consulting. The risk management and employee benefits consultant has developed 'enterprise risk management' (ERM) as a way of approaching risk management while taking threats and opportunities into consideration that could impact upon the successful delivery of strategic objectives. ERM also looks at potential methods of minimising identified risks.
Onyx Group is to expand into the financial services market following the acquisition of hedge fund supplier Moffat Communications. The technology solutions provider took over Moffat Communications from Grant Thornton UK LLP, and is an IT provider to the financial services market with a 100 per cent hedge fund client base. Its clients include Deutsche Bank and Oriel Solutions. Neil Stephenson, CEO at Onyx Group, said: "Moffat is a specialised company, in the heart of the City, with an excellent reputation so we are very pleased with the acquisition...It is an exciting time to be working in financial services and, as a business, this signals a new and exciting period of growth for us."
SIX x-clear Ltd is to open a new representative office in Stockholm, from which the company will clear transactions as Central Counterparty (CCP) on the regulated Nasdaq OMX exchanges in Denmark, Finland and Sweden from January 2010. Ann Flodström has been appointed as head of Nordic Region, and will primarily focus on strengthening client relationships and supporting entities involved in clearing. Marco Strimer, CEO of SIX x-clear, commented: "We are pleased to deliver on our promise to the Scandinavian market and are delighted to have found in Ann Flodström a highly qualified and proven expert with whom we can forge ahead."
Prudential plc has published strong half year results for 2009, with a capital surplus for the Insurance Groups Directive (IGD) of around £3.0bn at 31 July 2009. Mark Tucker, group chief executive, commented: "These results demonstrate a continuing strong performance by the Prudential Group in what remain challenging market conditions. As a result of the decision we took last year to focus on capital conservation and cash generation by concentrating on expanding sales in our most profitable product lines, we have been able to improve our margins across the Group in the first six months of the year."
The Alternative Investment Management Association (AIMA) has created a new Directive Centre on its website as part of its on-going campaign to have the European Commission's (EC) draft directive on Alternative Investment Fund Managers revised. The Centre will act as a resource for members of the public, containing everything relevant for the campaign, including the EC's directive and details of the legislative process.
Schroder Property Investment Management is to relocate its German property business from Wiesbaden to Frankfurt, Germany. The move will bring the real estate investment company's intermediary, institutional and property businesses together in one location in Germany.
AEGON hopes to raise up to €1bn through an equity issue, via an accelerated bookbuild, from today. The proceeds of the equity issue will be used to repay up to €1bn of the total €3bn of core capital obtained last year from its largest shareholder, Vereniging AEGON, funded by the Dutch State. The decision to repay by 1 December 2009 is conditional on AEGON's capital position, as well as on the outlook for the economy and financial markets not deteriorating materially. It also requires formal consent from the Dutch Central Bank (DNB).
The AXA WF Framlington Hyman Capital Fund has become the latest signatory of the European Socially Responsible Investment (SRI) Transparency Guidelines. The European Sustainable Investment Forum (Eurosif) was implemented in November 2004, with the support of the European Commission (EC), and provides a framework for greater clarity and accountability regarding the processes and principles of SRI funds. It also supports best practice in the sector.
Aon Private Risk Management (APRM) has opened an office in Geneva. APRM, an insurance broker and risk adviser for the ultra high net worth sector, is responsible for assessing the risks facing wealthy individuals and families' tangible assets, liabilities and well-being, providing insurance protection and risk management advice. The launch builds on Aon's network of 220 people, with offices already established in London, Frankfurt, Amsterdam, Madrid, the US and Hong Kong.
Jubilee Financial Products has announced that it is to delay the launch of four new investment products until 25 September as it believes the market will be lower in September, following the recent bull run. Senior partner, Ian Millward, said JFP believes by delaying until September, investors could benefit from a lower entry point.
Irish pension funds are now up 20.8 per cent since the end of February following a positive performance in July, says Rubicon Investment Consulting. The average return was 6.0 per cent, and the best performance came from Irish Life Investment Managers with 7.1 per cent. KBC Asset Management was the least successful with a still positive 5.3 per cent return for July. For 2009 so far, returns are positive, with an average fund returning 11.8 per cent, but over the past 12 months this averages at -12.4 per cent.
