Tag: 夜上海论坛ZO

Schroders mimics insurance volatility cap with post-Budget DC strategy

first_imgThe manager said the multi-asset fund would invest on a “risk-aware” basis similar to risk-parity strategies seen in the defined benefit (DB) sector.Its core portfolio would be 40% growth, 40% defensive and 20% inflation-protection assets, with further discretionary allocations based on medium-term investment views.The remaining strategy is based on downside risk-management, with a 6% cap on volatility, helping to keep potential losses below 8%.The volatility management strategy is akin to that seen in the insurance sector allowing insurers to hold riskier assets on their balance sheets, Schroders said.In practice, if volatility within the multi-asset fund rises above 6%, it will divest into cash until the level falls below the cap, before fully re-investing into the asset-allocation strategy as volatility subsides to normal levels.Schroders said the fund would also reduce the cap if the fund experienced continued losses, down to a volatility level of 1%, leaving some non-cash assets to avoid cash lock.The cap, and cap-reduction strategy, will allow the manager to protect losses up to a maximum of 8%, but, given the 1% minimum volatility, it cannot guarantee this, Schroders said.Back-testing over some 15 years by the manager found the largest loss figure to be 6.46% using the volatility-cap management strategy, compared with 11.84% if the core portfolio was invested without.John McLaughlin, head of investment solutions at Schroders, said the volatility strategy had never been used for the humble DC investor.He also said no downside management would be free, and that the strategy would sometimes hamper returns.“When it works well is a scenario like we 2008, where the market became intrinsically stressed and volatility spiked before we had the most severe falls,” he said. “Conversely in 2009, when the market rallied again, it would have taken us time to get back into the market because volatility was elevated as the market was rising, and this rule would tell us to leave, so it is not perfectly responsive.“You can also sometimes get a very calm market that suddenly dislocates downwards, and if this happens, we would follow the market down.“But that initial drop would immediately induce volatility, causing the fund to de-risk. You will lose something but not as much if you sat tight.”The fund’s investment strategy will include highly liquid assets to minimise transaction costs, with only around 50% in synthetics to keep the fund below the upcoming 75 basis point charge cap on DC default fund investments.The strategy was launched in reaction to changes announced in 2014 Budget, which removed compulsory annuitisation, with DC savers expected to exert freedom and move towards cash withdrawals and income drawdown. Schroders is to use a volatility-cap approach in its new defined contribution (DC) strategy launched to provide pre-retirement options for investors after compulsory annuitisation ends this April.According to the UK fund manager, its ‘Flexible Retirement Fund’ is designed to cater for DC members approaching retirement who are unsure whether to pursue income drawdown, cash withdrawal or an annuity.DC asset managers are expected to continue launching products around the shift in policy from the UK government, with old default strategies inapplicable for many savers.Schroders said its new multi-asset fund would target returns of inflation plus 2%, while stating a maximum loss value of 8% over any given timeframe.last_img read more

Rystad: Oil production in U.S. Gulf of Mexico set for record year

first_imgOil production in the U.S. Gulf of Mexico is set to make new records in the imminent future, according to Norwegian oil and gas intelligence firm Rystad Energy.Shell’s Appomattox platform. Image source: CrowleyRystad said on Friday that GoM oil production was a mere 1.28 million bpd in 2013, whereas in 2018 production averaged a record high of 1.79 million bpd.The intelligence company forecasted that 2019 production would average 1.95 million bpd, with some months potentially touching the 2 million bpd ceiling.Joachim Milling Gregersen, analyst on Rystad Energy’s upstream team, said: “With earlier than planned production, Appomattox will be a key growth contributor to help push U.S. Gulf of Mexico oil production toward a new record high before year-end.” To remind, Shell started production from its Appomattox floating production platform in the U.S. Gulf of Mexico earlier this month.Production from the platform kicked off several months ahead of its expected startup in the third quarter of 2019.Appomattox, Shell’s largest floating production system in the Gulf of Mexico, will host the adjacent Appomattox and Vicksburg hydrocarbon accumulations.According to Rystad, plateau production at the development will be around 140,000 boe per day while Shell claims that the expected production will peak at 175,000 boe per day.Shell is the operator of the project with a 79 percent stake, while China’s CNOOC owns 21 percent. Oil produced from the Appomattox will be moved by the Mattox Pipeline to the Proteus pipeline system and then onshore.“The torch has been carried by large deepwater fields, of which Appomattox is the latest contribution,” Gregersen added.Spotted a typo? Have something more to add to the story? Maybe a nice photo? Contact our editorial team via email. Offshore Energy Today, established in 2010, is read by more than 10.000 industry professionals daily.We had almost 9 million page views in 2018, with 2.4 million new users. This makes us one of the world’s most attractive online platforms in the space of offshore oil and gas.These stats allow our partners advertising on Offshore Energy Today to get maximum exposure to their online campaigns. If you’re interested in showcasing your company, product or technology on Offshore Energy Today contact our marketing manager Mirza Duran for advertising options.last_img read more

Former Liverpool flyer training with Championship side

first_img Former Liverpool and Stoke winger Jermaine Pennant 1 Former Liverpool winger Jermaine Pennant is training with Millwall and hopes to secure a contract with the Championship club until the end of the season.Pennant is looking for a new club after being released by Stoke last season.The 32-year-old, who played a key role in Liverpool’s run to the 2007 Champions League final, has been playing for Pune City in the Indian Super League but is now hoping to get his career back on track in England.Millwall are languishing in the bottom three of the Championship and boss Ian Holloway will need all the experience he can find to help the club move away from the relegation zone.Pennant had a trial with the south London club back in September, but a move could not be finalised at the time.However, a deal could now be completed and the talented winger could go straight into the squad for the league game against Fulham on Saturday.last_img read more

Januzaj transfer news: ‘Has Van Gaal bet on Man United to get relegated?!’

first_img Adnan Januzaj 1 Adnan Januzaj is reportedly set for a loan move to Borussia Dortmund as Manchester United get set to offlaod another attacking player.With Robin van Persie, Radamal Falcao, Angel di Maria and Nani all having left this summer, and Javier Hernanndez on the verge of joining Bayer Leverkusen, it leaves the Red Devils desperately short in attack,.And the fans are not happy…last_img