Work still needed on ‘big debate’ over illiquid DC investments, says BlackRock

first_imgBucksey added that BlackRock was a “great fan in our institutional business of trying to invest in UK plc, but in DC it is actually pretty tough”.“We all might be quite happy to earmark some of our DC savings to an infrastructure project that is going to pay us back in 2025, but when you are dealing with hundreds of thousands of individuals, and the plans change, you might need the money back much quicker than that,” he said.“It’s actually quite difficult to do. It’s just much harder to put it into some kind of unitised structure where people can get in or out [noting the requirement for a blended fund structure to allow for an element of liquidity].”Bucksey was also concerned about the 0.75% charge cap on DC default funds, especially over the opposition Labour Party’s pledge to lower it further to 0.5%.“There’s probably a point in all of this where some stability, from a political point of view, wouldn’t go amiss,” he said. “There’s been a lot of change brought in – and there’s fatigue in the market.”He said the majority of the passively managed BlackRock funds aimed at institutionals charged less than 50 basis points – “but if there are clients using a blend, or using some active, then clearly they would have to review that”. BlackRock has said it will consider how to grant defined contribution (DC) funds in the UK access to illiquid assets as the “big debate” around investments in infrastructure and property continues.Asked how DC funds in the UK could gain access to such asset classes, Paul Bucksey, the asset manager’s head of UK DC, said the firm would “continue to mull that one over” and stressed the benefits of accessing the associated illiquidity premium.“There is a big debate about illiquids, and property is the perennial one,” he said.“We have a DC property fund that really is a blend of four managers, just so we can make sure they are not all going to be full and unable to take money or pay money out.”last_img read more

Alfa Laval pumping systems ordered for FPSO to be built in China

first_imgAlfa Laval, a provider of specialized products and engineering solutions, has won an order to supply Framo pumping systems to a floating production, storage, and offloading (FPSO) vessel to be built in China.Alfa Laval said on Wednesday that the order had a value of approximately SEK 70 million ($8.4 million).According to the company, it is booked in the Pumping Systems unit of the Marine Division, with deliveries scheduled for 2018.Peter Leifland, president of the Marine Division, said: “I am very pleased to announce yet another large offshore order for our Framo pumping systems. The order proves that we can meet the high demands of reliable equipment from the customers in the offshore industry.”The Swedish company did not reveal the name of the client nor the name of the FPSO.Offshore Energy Today has reached out to Alfa Laval seeking details regarding the FPSO. The company’s spokesperson could not disclose any further details due to contract conditions.This is a second contract in quick succession for Alfa Laval. Last week, the company won an order to supply both Framo pumping systems and emergency generators to an oil platform in the North Sea. This order was valued at approximately SEK 170 million ($20.8 million).last_img read more