Macquarie brings Australia DC-tested ‘True Index’ strategy to UK

first_imgIn Macquarie’s eyes, the rise in importance of DC schemes in the UK means the country is beginning to look more like its home pension market, which has been dominated by DC schemes since the 1980s and where it said consolidation of funds and a greater focus on reducing fees resulted in growing demand for products like True Index.“A lot of it comes down to familiarity,” said Scot Thompson, co-head of Macquarie’s systematic equities team. “We’re seeing both DB and DC schemes in the UK undergoing very similar sorts of experiences where they’re challenged in terms of fees, so it’s an opportunity for us to help investors solve investment problems.”This could take the form of developing a bespoke solution or delivering a lower cost version of “some of the more expensive indices you might find out there,” he added, citing global emerging markets as an example of the latter.True Index is a low tracking error strategy with the addition of a total return swap. On a daily basis the swap determines that if Macquarie outperforms the index it retains the outperformance and if it underperforms it makes up the difference.“Every single day the net asset value of the fund matches the return of the index, which is really important because then you are able to trade on the fund without any risk of breaking swaps,” said Thompson.“Another way of thinking about it is a performance fee with a 100% clawback.”Macquarie said that, if employed correctly, True Index strategies could increase pension funds’ diversification while helping to reduce costs.Looking for IPE’s latest magazine? Read the digital edition here. Developments in the UK occupational pensions market have prompted Macquarie Investment Management to make available in the UK an index investing strategy that it has been offering to defined contribution (DC) schemes in Australia for more than two decades.The £299.7bn (€324bn) asset manager currently has two mandates from UK clients for True Index, which delivers exact daily index returns for no management fee.One mandate is with a defined benefit scheme for a separately managed account, and another has been developed for a DC fund with the support of Mobius Life, an investment platform, and could be a model for a commingled vehicle in future.A spokesperson for Macquarie said the asset manager was considering a further commingled fund for public offer, but this was still under construction.last_img read more

No pressure ahead of Everton tie-Shakava

first_img0Shares0000Despite the cold, Gor Mahia skipper Harun Shakava seems to be enjoying training at Everton’s Finch Farm training ground on November 4, 2018. PHOTO/Timothy OlobuluLIVERPOOL, United Kingdom, Nov 6 – Gor Mahia skipper Harun Shakava says the team is under no pressure as they prepare to face English Premier League side Everton FC in the SportPesa Trophy friendly game in Liverpool on Tuesday evening.Shakava notes the boys are calm and relaxed ahead of the tie and know what they need to do to make a better representation of themselves. “It is all about character. We have no pressure despite the expectations from the fans and the demands that come with playing for Gor. This is our job and we have to focus on the game and what we do on the pitch as a team,” the defender said.He says tactically, they have done their homework well and top on their agenda is ensuring Everton don’t see more of the ball than them.“We have to play the ball and not lose possession. We need to have that confidence to play and everyone must be ready to give their all. It is a huge test for us. We haven’t played in this kind of stadium or atmosphere before and we need to be at our best,” further stated Shakava.Gor Mahia skipper Harun Shakava at the Goodison Park Stadium on November 3, 2018 as Gor Mahia watched Everton play against Brighton in an EPL game. PHOTO/Timothy OlobuluHaving watched Everton play Brighton last Saturday, Shakava says the team knows their hosts strengths and weaknesses and will be ready to sting.“Everton play well compared to us because they control the game very well and attack in numbers realy quick, But, we also have our way of play and the coach has told us to play with no pressure and enjoy the game. I hope we can do that then the results will come,” he opined.The defender was part of the squad that travelled to Hull City in 2016 as part of the SportPesa All Star team that faced the hosts in a friendly match which ended 2-1 out of their favor.Gor Mahia head skipper Harun Shakava in training at Everton’s Finch Farm training ground on November 4, 2018. PHOTO/Timothy OlobuluHe hopes the experience he picked back then will be vital for his side as they play the game, and more so, the calming effect that comes with an experienced head.The skipper also notes they have adjusted to the weather having struggled in training for the past two days and says they are ready to warm up the Goodison Park with some exciting football.“At least it is not as bad as when we played in Tunisia and Algeria for the Champions League. We have adjusted to it and I know we will be ready to play well,” he said.0Shares0000(Visited 2 times, 1 visits today)last_img read more