Category: Funds

40% of Landlords Relying on Property
FundsPensions

40% of Landlords Relying on Property

A survey of independent landlords has shown over 40 per cent are putting their trust wholly in property as their means for pension provisions.

The survey of 879 property investors shows 42.4 per cent, with a further 49 percent using it as a major part of their income for their later years.

The findings by the Property Investors Network (PIN), comes less than a fortnight after the Financial Conduct Authority said millions of pensioners are getting a poor deal from the annuity market.

“We have a situation now where there is an endemic loss of faith amongst traditional financial institutions, and the public believe that good old bricks and mortar remain the best way forward,” said Simon Zutshi, founder of PIN.

Mr Zutshi, whose organisation hosts 41 property networking meetings each month across the UK, said the consensus amongst those involved in property investment is that it should be allowed the tax benefits given to other types of pension provision.

“The tales we’ve heard in recent years of highly paid bankers being utterly reckless with the futures of many, plus other tales of woe by those looking after our money, shows that the public should be entrusted with more control over their futures and Self-Invested Personal Pensions (SIPP) and should allow residential property as part of a solid portfolio.”

The FCA said in its recent report that millions of pensioners were getting a raw deal due to poor annuities, with the regulator also highly critical of price comparison websites used by some people to buy an annuity, saying that every one of the 13 sites it looked at was guilty of poor practices.

An annuity provides a regular income from the pot of money that a pension plan holder has accumulated during their working life. At retirement, an estimated 60% of people simply take the deal offered by their pension provider, even though they are entitled to shop around and make use of the so-called open market option.

“State pensions are on the decline and private pensions are under invested in,” added Mr Zutshi. “Yet the performance of property historically provides enough evidence to provide a compelling argument as a means for pension provision. We hope these findings will add to the debate.”

Calculus Invests in Digital Admin Firm
FundsPensions

Calculus Invests in Digital Admin Firm

Private equity fund manager Calculus Capital has invested £2m – via its EIS Fund – into a digital administration services provider that is helping to deliver a low-cost revolution in the pensions, savings and investment industries.

Through its proprietary technology platform, Quai provides white-label administration services for personal savings products at a fraction of the costs currently borne by traditional providers.

Quai was established in 2011 by a team of former Legal and General, Brewin Dolphin and BNP Paribas Securities Services executives. The founders recognised that legislative and regulatory changes such as auto-enrolment, the Retail Distribution Review and the Solvency II Directive would fundamentally change the way wealth managers, insurers, banks and other pension and investment companies provide savings products to individuals.

Mass distribution of individual savings plans, combined with the elimination of commission payments are forcing providers to offer high-volume, low-margin saving plans – a process that is being further accelerated by the proposed Government cap on pension scheme costs.

However, the legacy systems of providers are increasingly unfit for the demands of this rapidly evolving landscape, driving a need for more advanced technology to reduce administrative costs, increase capacity and improve efficiency.

Susan McDonald, chairman of Calculus Capital, said: “Providers are having to manage more pension schemes, savings and investment products at a lower unit cost, whilst struggling with inefficient legacy systems and processes. Established operators must choose whether to build bespoke in-house systems to administer mass-market products – which is likely to be extremely expensive and time-consuming – or to outsource to a service supplier with a fully developed platform. Quai’s platform is regarded as one of the most advanced and cost-effective third-party solutions and is therefore generating a great deal of interest from major financial institutions.”

Quai’s outsourced service is built on a proprietary technology platform incorporating a full service portfolio management system. It allows banks, insurance, pension and investment businesses to efficiently administer extremely high volumes of savings plans through automated systems, straight-through processing, online functionality and multi-currency individual and model portfolio management services.

Ms McDonald adds: “Our investment should provide Quai with the breakthrough capital it needs to convert current levels of interest in its platform into signed contracts. The funding will support Quai in the completion of several deals with key UK financial institution that are keen to benefit from the company’s services as soon as possible.

“It also provides extra resources so the company can continue to develop and enhance its systems and focus more efforts on business development.”

Tony Webb, Quai managing director, adds: “Calculus’s investment comes at a crucial stage in our growth and development. There is a huge need for our services and technology platform; investment and pension administration systems are effectively creaking under the increased demands placed on them by the need to roll out mass-market products. Unless they take action this strain on their back-office systems is likely to result in potentially costly and damaging problems occurring. With our focus on high efficiency systems, we are able to resolve these problems and reduce costs to our clients and their end customers.”

Confluence Launches in Dublin
FundsInfrastructure

Confluence Launches in Dublin

 

Confluence, the global leader in investment data management automation, has continued its expansion by opening an office in Ireland.

Regulatory challenges such as AIFMD have meant that fund managers are increasingly looking to data automation to help manage their investments. Located in Dublin’s popular Silicon Docks district, the new operation extends Confluence’s European presence beyond London and Luxembourg, where the company has serviced the European asset management industry since 2006.

Despite the increase in regulation, many fund managers still rely on manual spreadsheets to track investments that make up a multi-trillion dollar industry. Confluence has been working to create a smooth, automated process which saves time and improves accuracy.

Commenting on the opening, Skip Smith, Chief Operating Officer of Confluence said, “The global fund industry’s appetite for data consolidation and automation solutions is increasing. The Dublin office is part of our strategic plan to meet the rising needs of back office professionals. Our goal is to support asset managers and service providers as they look to solve the complex data management challenges associated with regulatory issues, and other cross-border
reporting challenges.”

Smith concluded, “Ireland is a financial gateway to the global fund industry and it was a natural next step for our business to open an office in one of the international fund jurisdictions. The Irish funds industry supports an innovative business environment within a renowned regulatory landscape and Ireland’s status as an international hub for the funds industry is deserved.”

Confluence provides data consolidation and automation solutions to more than 40 percent of leading global investment managers. Ireland hosts over 40 percent of global alternative investment industry fund assets and an infrastructure that provides distribution and domicile services to over 12,000 funds.

UK Growth Brings Skills Into Focus
FundsInfrastructure

UK Growth Brings Skills Into Focus

 

As UK businesses enjoy a positive start to 2014, a leading international training organisation warns that growth could be severely curtailed for those that fail to address their immediate
sales-base requirements.

Confidence in the UK economy is noticeably increasing, with falling unemployment and manufacturing and retail sectors recording strong growth. In fact, the International Monetary Fund puts UK growth at 2.4 per cent – stronger than any other European economy.

According to a recent CBI report, to truly fulfil this growth, Britain needs to close the gap between schools, colleges, universities and the work place with world-class apprenticeship and earn while you learn schemes.

Doug Tucker, Managing Director of Sales Commando, believes this needs to be taken a step further.

“With growth comes re-employment. Companies that laid people off during the recession are now desperate to build up staff numbers to fulfil increasing demand and competition. And it is going to become very competitive.

“The only way companies can compete to win as the economy rights itself is through sales. And that requires up-to-the-minute, professional sales training.”

Sales Commando recently polled its clients, not just in the UK but in all of the international markets within which it operates. Unsurprisingly, the biggest area of concern was the need “to sell better.”

“Bridging the gap between education and business is an on-going challenge and the CBI is right to champion this cause. But of equal importance is the need to equip sales forces with the ability to capitalise on a rapidly growing economic environment and changing realities by selling more effectively.”

Doug warns: “Companies that fail to sell better will fail ultimately as they’re surpassed by others who progress and expand. Now the UK is emerging from one of its most severe recessions of recent times, sales skills are being brought sharply into focus.”

One in Four Not Ready to Retire
FundsPensions

One in Four Not Ready to Retire

New research from Prudential has highlighted how attitudes to retirement are changing, with nearly one in four (23 per cent) people planning to retire this year saying they don’t feel ready to stop working altogether.

Meanwhile 13 per cent of those who had been scheduled to retire have chosen to delay their plans because they don’t want to give up work just yet.

The research into the ‘Class of 2014’ is Prudential’s seventh annual study tracking the future plans and aspirations of people who plan to become new retirees this year. More than half (54 per cent) will consider working past the State Pension Age in an attempt to make their retirement more financially comfortable.

Around a quarter (23 per cent) would consider working full-time while 31 per cent would weigh up the idea of working on part-time. Ideally they would prefer to continue in their current job with reduced hours, with 32 per cent of those considering working past the State Pension Age suggesting that option is the one that would suit them best.

However, this year’s results highlight positive attitudes to retirement despite ongoing financial pressures. The main motivation for 57 per cent of this year’s retirees who would consider continuing to work past the traditional retirement age is to keep mentally and physically fit. More than a third (35 per cent) also cite the ability to boost retirement savings as a consideration, while 40 per cent simply enjoy working and 39 per cent don’t feel ready to retire just yet.

The study also found that the ‘Class of 2014’ are expecting a busy and enjoyable retirement – 53 per cent of those planning to retire this year intend to do more exercise, 37 per cent will be socialising more, while 36 per cent plan to take up voluntary or charity work. Around 29 per cent say they have no worries or concerns and are really looking forward to their retirement.

Stan Russell, a retirement income expert at Prudential, said: “For many people retirement is now a gradual process rather than a watershed where you simply stop working one day and become retired the next, and that is reflected in the change in attitudes shown by our research.

“However, there is no one size fits all solution to retirement and many people will be looking forward to leaving work as soon as they can. What is important is that people plan ahead for retirement and do as much as possible to ensure a comfortable retirement by consulting a financial adviser or retirement specialist well ahead of their planned retirement date.

“Working past traditional retirement ages is not solely driven by financial pressures and the research shows growing numbers of people wanting to carry on working because they enjoy it and because it keeps them stimulated mentally and physically. Increased life expectancy and improvements in general health are changing how we think about retirement.”

Mega Buyout Funds Raise $85bn
EquityFunds

Mega Buyout Funds Raise $85bn

Following the recent significant final close of Apollo Investment Fund VIII, the largest buyout vehicle to have reached a final close since the global financial crisis in 2008, Preqin has taken a closer look at the private equity buyout fundraising market.

In the factsheet below are key figures including an updated table of the top 10 buyout funds closed ever and the largest buyout funds currently in market, as well as charts examining historical fundraising, the changing average size of final closes, and a breakdown of buyout fundraising by fund size.

The $18.4bn raised by Apollo – including $17.5bn in LP commitments – has pushed the average size of buyout funds closed in 2013 to over $1.2bn, the largest average size seen in any year since the onset of the global financial crisis.

Guernsey adds 33 new funds in Q3 2013