BP’s internal investment management team secured positive returns in all classes except some international equities and its UK Gilt holdings.All investments are managed in-house except Sterling fixed income allocations, which Baillie Gifford and Goldman Sachs Asset Management manage.Its North American equity portfolio returned 28%, which the fund said was due to the US Federal Reserve’s “easy money policy” boosting asset values.“Risk assets – equities in particular – enjoyed supernormal returns in 2013,” the fund said.Japanese and European equities both returned 25%, and UK equities 20%, but the fund suffered in other Asian and emerging markets.It also saw strong returns from property (12.1%) and private equity (14.1%) but experienced negative returns for UK Gilts (5.8%) and some international equities (3.8%).The fund now holds 58% of assets in equities, 7% in property and 14% in pooled investment vehicles.However, the fund’s equity allocation fell 2 percentage points as the scheme increased its index-linked fixed income exposure by 60%.It also increased its use of pooled investment vehicles and expanded its directly held property portfolio, which included the purchase of a £27m supermarket from the M&G Secured Property Income Fund.At the end of 2012, the trustees acted to increase the fund’s liability-driven investment programme, seeing derivatives, fixed interest and index-linked exposure increase over the year.It now holds £17.3m in derivative contracts, up from £3m, after the trustees updated the statement of investment principles to move 3% of assets from growth to liability matching.Despite the bumper returns from its equity portfolio, overall annual return on investment was 14.7% – 30 basis points below the fund’s benchmark.The BP Pension Fund also strengthened its in-house team with two senior hires from Aon Hewitt and the Pension Protection Fund. The BP Pension Fund grew 14% over the course of 2013 as it shed its deficit through strong returns on its majority equity portfolio.It grew in size to £19bn (€22.7bn), up from £16.6bn, taking its coverage ratio back above 100% after two consecutive years of deficit.Its funding ratio at the end of 2013 was 101%, up from 94% at the end of 2012 and 92% in 2011.Despite paying out more than £500m in benefits, the fund’s investment portfolio provided a net return of £2.5bn but saw £123m of withdrawals from members.
RelatedPosts Lampard: I still have confidence in Tomori Super Eagles stars model new national team jersey Mane double eases Liverpool to win over 10-man Chelsea Liverpool are reportedly keeping a very close watch on Samuel Chukwueze following the Villarreal winger’s breakthrough campaign last season. The 20-year-old enjoyed an outstanding breakthrough campaign last season, where his form brought him to the attention of some of European football giants and also saw him make his international debut for Nigeria. The likes of Arsenal, PSG and Real Madrid have all been mentioned as possible suitors, but according to Goal, it is Liverpool who are most watching the youngster closely. As per the report, scouts from the European champions have been regular visitors to the Estadio de la Cerámica and it’s believed Liverpool could make a move as early as January for a player already thought to be high up on Jurgen Klopp’s wish-list. Liverpool already have Senegalese star Sadio Mane and Egyptian king Mohamed Salah on their books and the capture of Chukwueze could give them an all-out African attack. The Nigerian is currently rated in the €40 million bracket, but with his value likely to soar, Liverpool know they may have to strike sooner rather than later or run the risk of seeing his price rise dramatically. Liverpool are also said to be keen on €15 million-rated Trabzonspor keeper Ugurcan Cakir. And having watched him in action over the weekend, it’s now reported in Turkey that the Reds are plotting a January approach for his services.Tags: European FootballLiverpoolSamuel Chukwueze read more
DES MOINES, Iowa – The 36th-ranked Drake University men’s tennis team looks to extend its five-match winning streak as the Bulldogs host Brown on Friday at 6 p.m. and No. 49 Wisconsin on Sunday 11 a.m. Drake has been perfect at home with an unblemished 9-0 record. The Bulldogs will look to remain undefeated, 5-0, against Big Ten opponents when they play Wisconsin. The Badgers will be Drake’s 13 ranked opponent this season and the Bulldogs are 7-5 against nationally ranked teams. Drake is led by a pair of underclassmen, sophomore Calum MacGoech and freshman Vinny Gillespie. MacGeoch is on a seven-match singles winning streak and was named Missouri Valley Conference Men’s Tennis Player of the Week on Tuesday for his performance in leading the team to wins over then-ranked No. 33 Iowa, Michigan State and No. 65 Cornell. MacGeoch leads the team with 11 dual match wins, while Gillespie has totaled 10 dual match wins. Brown will be Drake’s fourth opponent from the Ivy League. The Bears come to Des Moines with a 6-6 record and are on a two-match skid. Brown fell at UNC Wilmington and Elon at the end of February. The Bears best win of the season was 6-1 victory over ACC foe Boston College. The Badgers moved up in the ranks this week from No. 55 to No. 49. UW will play Brown on Saturday prior to taking on the Bulldogs on Sunday. The Badgers are 9-1 with their only loss coming to No. 8 TCU, 5-2. UW is led by Josef Dodridge, Osgar O’Hoisin and Jose Carranza, who all have eight dual-match wins. Following this weekends matches, the Bulldogs will have eight days to prepare for No. 20 Oregon as the Ducks come to Des Moines on Tuesday, March 22. Print Friendly Version read more